Life and Health Insurance in California
The two most crucial insurance coverages you can have are health insurance and life insurance. Life insurance provides you with the security of knowing that if something happens to you, your family will be financially secure. Health insurance helps cover the costs of health care services should you need them.
Your agents at DRD Insurance Agency are here to help you navigate the health and life insurance policy options that are right for you.
What Is Life Insurance?
Life insurance is a contract between an insurer and a policy owner. It provides a financial settlement to your loved ones after your death. The sum of money, known as a death benefit, is given to a designated beneficiary. This beneficiary could be a spouse, child or another party who could benefit from your funds.
There are two types of life insurance:
Term life insurance—Provides a death benefit if you die during the policy’s term. The term is a period of years (10, 20, 30, etc.), and the end of the term is essentially an expiration date. If you do not die during the term, the policy does not pay. You will have to reapply for a new policy if you want to continue to have coverage when the term ends.
Permanent life insurance—Will not expire unless you stop paying your premiums. Some permanent plans also offer cash value investment funds. The cash value fund can enable you to receive a source of income during your lifetime.
What Is Health Insurance?
Health insurance covers medical expenses for illnesses, injuries and conditions in exchange for a monthly premium paid. After you receive a health care service, the physician or facility will send a bill to your insurance company. Once the bill is reviewed and paid by your insurance company, any remaining balance will be your responsibility to pay.
There are a handful of different terms relating to your health insurance that are helpful to know. These include the following:
Group health insurance—An insurance plan that you get through your employer.
Individual health insurance—An insurance plan that you purchase on your own from an insurer or insurance agency.
Premium—The monthly amount you pay to the insurance company in exchange for insurance coverage.
Deductible—The amount you owe for health care services before the insurance company begins to pay for services. Note: Your deductible may not apply to all services rendered. Preventive care services are often covered in full before meeting your deductible.
Out-of-pocket maximum—The maximum amount of money you should have to pay in a plan year for health care services, excluding your premium.
Copayment—A fixed amount that you may owe for a covered health care service, which may vary depending on the type of service you receive.
Learn More About Life and Health Insurance
At DRD Insurance Agency, we know how important it is to have the coverage that’s best suited for your needs. Contact your agent today to learn more about life and health insurance policies and get started on your coverage.