Category: Insurance

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What are the Different Types of Health Insurance and Why Do You Need Them

Types of Insurance

Ah, the world of health insurance—it can be mind-boggling. Before you strain your brain too much, let us help decipher all the different types of health insurance and why you need them.

Basically, there are two types of insurance:  private health insurance and public health insurance.

Public Health Insurance

Medicaid

Public health insurance is funded by the government. Medicaid is state-run and offered by the government to help low-income individuals and families with medical care. Individuals and families must meet an income requirement to be eligible for Medicaid, and those requirements vary depending on the state.

Medicare

Medicare is government health insurance provided to the elderly (age 65 or older). Medicare covers most medical costs. There are four main parts or Medicare:

Part A covers care in hospitals and nursing facilities

Part B is your medical insurance. It covers doctors and outpatient care, and also covers some things not included in Part A, like physical therapy and home health care.

Part C is called the Medicare Advantage Plan and this allows you to get health coverage for Part A and B through a private health plan

Part D is for medication and covers some prescription drug costs. Low income individuals may qualify for additional coverage.

Private Health Insurance

If you don’t qualify for public health insurance, you must opt for private health insurance. Most people get this through their employer. Under the Affordable Care Act (ACA), you can also buy health insurance on your own, but it usually costs significantly more than plans available through an employer, because you pay for the entire plan yourself rather than the shared employer cost.

Types of Private Health Insurance

HMO (health maintenance organizations) require you to obtain medical care from their provider network. It costs less, but you have less choice of doctor.

PPO (preferred provider organizations) allow you to choose in-network or out-of-network doctors. Costs are covered, but in-network care costs less.

Reimbursement plans reimburse you based on your costs.

Indemnity plans pay based on what happens.  For example, if a person were to break their arm, the plan would pay a set amount for the needed health care.  It is considered to be a fee-for-service plan and has no restrictions on your choice of doctors or hospitals. The insurance company is paid a fee each time you get medical care. Naturally, with indemnity plans, your out-of-pocket costs are higher than in an HMO or PPO.

 

Understanding Health Insurance Series
Understanding Health Insurance
The Basics that Every Person Needs to Know about Health Insurance

4 Reasons Everyone Needs to Have Health Insurance

What are the Different Types of Health Insurance and Why Do You Need Them?

3 Answers to Common Health Insurance Questions

What is the Minimum Amount of Health Insurance Coverage that I Should Have?

 

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4 Reasons Everyone Needs to Have Health Insurance

Why You Need Health Insurance

One of the hot political topics right now is health insurance.  Who should be able to have it?  What about costs?  Can you go without it?  What is the penalty?  BJI is here to help.  This month, we’re talking about what you need to know to make the best decisions that you can about health insurance.

One of the most basic questions is whether or not you actually need health insurance.  Read on, and we think you might realize why everyone should have it.

Life is Unpredictable

Although life’s spontaneity sometimes is pleasant, unpredictable occurrences can have dire consequences for your health and your budget. Significant illness that you don’t expect (such as cancer, diabetes or a suddenly needed operation) and traumatic events have high medical costs that can ruin your credit rating.  Medical bills are one of the most common reasons for personal bankruptcy and easily can set you back for years.

Whether it’s an illness you didn’t expect or an accident that wasn’t supposed to happen, health insurance needs to be in place BEFORE you need it.  Of course, the hope is that there’s no need for urgent care or a hospital stay, but it is a good feeling to have the peace of mind knowing that you’re covered.  You won’t have to worry about the stress of paying medical bills while recovering, AND your budget won’t be blown from an unplanned emergency.

Maintain Your Most Valuable Asset – Your Health

Your health is valuable! Many of us think about insurance in terms of covering accidents and illnesses, but maintaining good health is just as important. It keeps one of your prized assets – your health – in tip-top shape.

Without health insurance, you may be less prone to visit the doctor for a routine checkup. However, having a health insurance policy allows you to take advantage of “preventive care” that is included in most plans.  You are able to see your doctor for regular checkups, get vaccines, and participate in other benefits (such as health screenings) that help you to maintain better health.  The plan you choose will determine what actually is included.

Reduce Your Costs

Insurance companies have special negotiated rates with doctors who are in-network.  When you have health insurance, covered in-network health care costs less for you – even before you meet your deductible.

Avoid Paying a Penalty

In addition to your health being valuable to you personally, it is also valuable to your budget. Current health insurance laws require you to carry health insurance or pay a penalty.  For any month that you, your spouse or tax dependents do not have “minimal essential coverage.”  The fee is either a percentage of your household income or per person whichever is higher.  You can avoid this penalty just by having health insurance.  Later this month, we will discuss this topic a bit more.

Obtaining health insurance is important for everyone. You never know what the future holds, but you can be sure to get the best health care you need with the right insurance coverage. BJI is here to help.  Contact us today.  We will show you options and to help you decide what type of health insurance fits your situation and your budget.  Click here.

 

Understanding Health Insurance Series
Understanding Health Insurance
The Basics that Every Person Needs to Know about Health Insurance

4 Reasons Everyone Needs to Have Health Insurance

What are the Different Types of Health Insurance and Why Do You Need Them?

3 Answers to Common Health Insurance Questions

What is the Minimum Amount of Health Insurance Coverage that I Should Have?

 

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Keeping Boat Insurance Afloat in the Off Season

expensive pleasure boat safely stored under canopy on a hyrdolic lift in a dock

Summer is over, and you’ve taken your boat out of the water. To save a few dollars, you cancel your boat insurance. After all, what could possibly happen to your baby while it’s hibernating? A lot, according to Progressive.

“You’d be shocked at the number of claims filed in colder months,” says Dominic Mediate of Progressive. “Nearly two out of every 10 Progressive boat claims filed in northern states happen between Labor Day and Memorial Day.”

Don’t take a gamble on nothing bad happening.

Common off-season claims:

Fire, theft, vandalism and flooding

Most claims are filed for one of these reasons, which can occur anytime of year. Without coverage, boats damaged by fire, theft, vandalism or flooding aren’t protected.

Injuries that occur on or around your boat

Some boaters don’t realize they could be responsible for injuries that occur on or around their boat — even if the injured person was there illegally. Without liability coverage, you could be responsible for the damages or the injured person’s medical bills.

Keeping your policy all year round might also save you a few bucks.

Progressive’s disappearing deductibles reduce your Comprehensive and Collision deductible 25 percent for every claim-free policy period. Four policy periods in a row without a claim equals a $0 deductible. Canceling your policy could mean paying more or the entire deductible, generally $500 or $1,000.

Check your policy and consult Bob Johnson Insurance, Inc. Click here to contact BJI or call 865-922-3111.

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Why is Car Insurance Important

Ben Johnson of Bob Johnson Insurance in TN

Some people choose not to get it for financial reasons or perhaps because they consider themselves to be “good drivers.”  However, there are reasons why it is important to carry adequate car insurance.

It is Required by Law

Getting caught without car insurance can impact your ability to drive.  You might get your driver’s license taken away.  If you are pulled over or in an accident and you do not have insurance, there can be a high likelihood that you could lose your license for up to a year.  For repeat offenders, it could be longer or even include jail time.  There’s often a fine involved.

It Protects You and Your Family

Another reason to carry car insurance is because it protects both you and your family as well as other drivers and their families.  If you are involved in a wreck or property is damaged, insurance can provide for property repair and/or medical expenses.  It helps you save money when you need it most.  No one expects to get into a car accident, but they happen.  Consider it like an umbrella.  You may not need it, but it’s great to have one when it rains.

Save Money on Rental Insurance

Do you go on trips during which you rent a vehicle?  You might be able to avoid having to pay for the insurance offered by the rental company.  Check with your agent.  Your vehicle insurance may cover you while you are driving a rental.

Roadside Assistance

It’s not uncommon for an insurance policy to provide some type of roadside assistance.  Whether you run out of gas, hit some black ice and slide off the road or just have a flat tire, you should be covered by the roadside assistance in your policy.  Help is just a phone call away.  Be sure to check with your agent to see what is covered in your policy.

What to Do Next

As you can see, car insurance is not just an annoyance.  It is important to have adequate coverage from a company you can trust.  If you wonder about your coverage and you live in Tennessee or Kentucky, Bob Johnson Insurance is glad to help.  Please give us a call at 865-922-3111 or click here and fill out our contact form.

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The Difference Between Types of Insurance Agents

Ben Johnson of Bob Johnson Insurance in TN

Those insurance commercials on TV can be so amusing, but when it really comes down to it, which kind of insurance agent do you want?  Let’s take a look.

There are three types of insurance agents:  independent, captive and direct through the internet.  Our post “Why should you choose an independent insurance agent over online insurance?” explains why getting insurance online may not be your best choice.

A “captive agent” works for just one insurance company.  The benefit is that they are very well-trained in their company’s products, and they usually will know fairly quickly if you qualify for a particular product. They also generally offer good customer service as well. They will be able to answer your insurance-related questions and help guide you through purchasing a policy. On the other hand, they are limited in options that they can provide to you, because they can offer products from only one insurance company.

Why an Independent Agent is the Best Choice

An independent agent stands out from the rest. Because they do not have an exclusive relationship with one company, they do not have the limitations of online insurance or a captive agent.  The result is you get more from an independent agent.

  • They can provide quick quotes across multiple insurance companies to help you find the best rate.
  • Based on their experience and knowledge, they can advise you about the differences between companies as well as the benefits of each insurance company so that you can choose the one that balances the coverage you want with the rate you can afford.
  • You get personalized service centered around your needs and wants.
  • If you need multiple policies (such as auto, home, and life), you are not limited to one company for all your insurance needs. Your independent insurance agent can provide you with information about your options so that you can make the best choice for which company or companies will provide your insurance.

We would like to help you!

We would love to answer any questions you may have or to provide a quote for you. For questions, please give us a call at 865-922-3111 or click here and fill out our contact form. One of our experienced agents will contact you as quickly as possible.  If you prefer, you can click any of the links under “Quotes and Information” (in the upper menu bar) to receive a free quote.

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Progressive Boat On-Water Towing

Getting ready for summer on the water?  Don’t get “caught without a paddle.”

Progressive offers unlimited on-water towing, no out-of-pocket expense for PWC (Personal Watercraft) or jetskis. You can get coverage up to $2,500 of towing and labor costs per occurrence and it has no deductible.

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How Much Car Insurance is Enough: Collision and Comprehensive Coverage

In Parts 1 and 2, we talked about deductible and liability coverage.  There are two other coverages that you should consider.

Collision & Comprensive Vehicle Insurance

You may remember that liability car insurance covers the medical and property damages to others. Collision Car Insurance covers your vehicle such as if you hit an object like a fence or pole.  It also covers damage to your car if someone else hits you, and they do not have liability insurance. Collision car insurance also covers your vehicle if you are at fault.

Comprehensive covers other damages.  If your vehicle is stolen and not recovered, that is covered under comprehensive.  It also covers damages from weather (tornado, hail, etc.), floods, fire, falling objects, explosions, crashes with an animal (such as a deer) and even riots and civil disturbances.

Do I need Collision or Comprehensive vehicle coverage?

This decision is really up to you.  Our experience has been that most people drop collision or comprehensive (or both) when their car’s value drops below $2,000-$3,000.  It is simply a matter of value.  Add the premium to the deductible if you should have an accident.  If the total is greater than the value of the vehicle, some people choose not to get collision and/or comprehensive coverage.

There are some situations where we recommend getting collision and comprehensive coverage.  These include:

  • If you take out a loan to buy your car, the lender may require these coverages.
  • If you lease your car, the leasing car may require these coverages.
  • If you cannot afford to replace or repair your car if you crashed or it was stolen.
  • If your area has a high incidence of car theft, vandalism or the other situations described above.

I’m just not sure about all these coverages. What do I do?

This question is why we are here for you.  Click here to contact us or give us a call at 865-922-3111 or 800-624-3339.   We can provide the information to help you make the best decision for the right coverage at the right price.  In addition, because we are an independent agency, we can show you quotes from many different insurance companies so that you can choose the right one for you.

How Much Insurance Do You Need?

Low vs. High Deductible
Liability Insurance
Collision and Comprehensive Coverage

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How Much Car Insurance is Enough: Liability Insurance

In Part 1, we discussed deductibles and what you should consider regarding a low vs. high deductible.  A second very important part of your vehicle coverage is liability.

What is Liability Insurance?

Liability car insurance covers damages to another person that result from an accident you cause.  It is one of the most base types of coverage and is also mandatory in every state.  The actual minimum limits of coverage can vary state-to-state.

Understanding Liability coverage

Liability coverage is represented by three numbers.  It might appear as 25/50/15 or 100/300/100.  Knowing what these numbers mean is very important.

The first number is maximum paid for “bodily injury” to the other person per accident. (Think in terms of medical expenses for this one.)

The second number is the “maximum paid per accident.” Add up all the costs the insurance pays, and it cannot exceed this amount.

The third number is the maximum paid for “property damage” to the other person’s vehicle as well as any other property damage done (such as fences, guardrails, buildings, etc.)

How much Liability Insurance Coverage do I need?

Although the minimum limit may be lower, a very common liability amount chosen is 50/100/50.  However, we recommend that you make your liability coverage as high as you can afford.   It’s in your interest to do so.

Let’s consider if you were in an accident in which you totaled the other person’s vehicle.  Costs might include:

  • The vehicle
    According to USA Today, in 2014 the average used car price was almost $17,000.
  • Ambulance to the hospital to get checked
    Ambulance rides can cost from $500-$2000 depending on where you are and what is required.  The L.A. Times reported that one lady’s insurance company covered $750 for her ambulance ride and she had to pay over $1500 for the rest of the cost.
  • Medical Costs (emergency room, hospital, x-rays, tests, etc.)
    One of our customers spent just one night in the hospital last fall.  By the time all the costs were added up, the bill was over $9000.  That’s just for one night to get checked out and monitored.

While all of these are very general numbers, they add up quickly. Liability costs from an accident can quickly reach $25,000 or more.  If you are carrying the Tennessee minimum (25/50/15), all those expenses would be covered.  However, what if it was a new car worth $35,000?  What if there are extensive injuries requiring a several nights stay in the hospital followed up by physical therapy and other doctors visits.  With the minimum coverage, the maximum the insurance pays is $50,000.  You are liable for the rest.

Being Realistic

We are not trying to be scary here.  It’s important to be realistic about what liability can mean. Your budget may determine how much coverage you carry. However, if you have the ability to carry more, we recommend that you do.

Our hope, of course, is that none of us has an accident.  How much Liability Coverage should you have?  Talk to your insurance agent about the right amount for you.  They can answer any questions you have about it as well.  If you would like, contact Bob Johnson Insurance.  We have several experienced agents who can help you decide what is right for you.

How Much Insurance Do You Need?

Low vs. High Deductible
Liability Insurance
Collision and Comprehensive Coverage

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How Much Car Insurance is Enough: Low vs. High Deductible

Many questions come to mind when you are getting your car insurance.  Questions like:

  1. What do all these numbers like 100/300/100 mean?
  2. What is an umbrella policy and do I need it?
  3. How much coverage do I really need?

That third question is one that we all face.  We know how much we want to pay — as little as possible so it doesn’t hurt the budget too much. We know how much the highway patrol requires — hopefully.  However, that might not be enough.  Let’s take a look.

Low Deductible vs. High Deductible

The most commonly chosen deductible for vehicles is $500.  We recommend, however, that you should do a break-even analysis.  You might consider raising your deductible to save money. The national average for car claims is 7 years.  Divide the change in deductible by the amount of savings. If it is greater than 7 years, it’s probably not a good thing to do.

The actual savings of raising your deductible can vary from one insurance company to the next and it depends on too many variables for us to actually use accurate numbers here.  However, let’s make up some numbers.

If you raise your deductible to $1000 per year, let’s say that saves you $50 per year.  Your break-even:

$500/$50 each year = 10 years to break even

The national average of having an auto claim is 7 years, so that’s probably not a good thing to do.  But what if raising your deductible saved you $150 per year?

$500/$150 each year = 3.3 years

Raising your deductible might be a good idea in this case.  You should contact us to get actual rates.  In addition, our experienced agents will be able to help you choose exactly the best coverage for YOU.  (And we’re also happy to answer all the questions you may have about it!)

How Much Insurance Do You Need?

Low vs. High Deductible
Liability Insurance
Collision and Comprehensive Coverage