Insurance is an important aspect of personal finance that can help protect individuals and their families from financial losses due to unforeseen events. Several types of insurance plans are available, each designed to cover different types of risks.
It is important to consider all types of coverage when deciding what insurance makes the most sense. Five common types of insurance include:
1. Health insurance
Health insurance is one of the most important types of insurance that people need. It helps individuals pay for their medical expenses, including hospital stays, doctor visits, and prescription drugs.
Health insurance can be provided by an employer, purchased individually, or obtained through a government-sponsored program like Medicaid or Medicare.
The cost of health insurance in the U.S. can vary widely depending on factors like age, location, coverage level, and individual health status. In general, the average monthly premium for an individual health insurance plan in 2020 was around $456, according to data from eHealth.1
2. Dental insurance
Dental care is important to overall health, and dental costs without insurance are expensive. With insurance, individuals can manageably pay for routine dental care, like cleanings and fillings, and more complex procedures, and major services. Many dental insurance plans also cover orthodontic treatment, which can be expensive without insurance.
According to Forbes, the average preventive-only dental insurance plan costs $26 per month or $312 per year.2
3. Vision insurance
Like dental insurance, vision insurance helps individuals pay for eye care like exams. It can also cover more complex vision procedures like LASIK surgery. Regular eye exams can help detect eye diseases like glaucoma and macular degeneration early, helping make treatment more effective.
According to eHealth, individual vision insurance plans can range from $15 to $30 per month.3
4. Life insurance
Life insurance provides financial protection for individuals’ families in the event of their death.
The policy pays out a lump sum of money to the beneficiaries, helping to cover expenses like funeral costs, outstanding debts, and ongoing living expenses. Life insurance can be especially important for individuals with dependents who rely on their income.
The cost of life insurance in the U.S. varies depending on several factors like age, health, gender, occupation, and the type of policy. In general, the younger and healthier an individual is, the lower the premium will be.
5. Supplemental insurance
Supplemental insurance can fill coverage gaps and give people extra financial protection. Here are some types to consider:
- Critical illness insurance: Critical illness insurance provides a lump sum of money to individuals diagnosed with severe illnesses like cancer or heart disease. The money can be used to cover medical expenses not covered by health insurance, as well as other expenses like mortgage or rent payments, transportation costs, and home care.
- Hospital insurance: This type of insurance is designed to help cover some or all of the costs associated with a stay in the hospital for injury or illness. Policyholders can use the payout to cover a variety of costs, from intensive care to everyday expenses.
- Short-term disability insurance: This insurance plan serves as income replacement during periods when individuals are unable to work as a result of illness or injury. It pays a percentage of the individual’s income for up to a specified amount of time, depending on the policy.
Several types of insurance plans are available to help individuals protect themselves and their families from financial losses due to unforeseen events.
While not everyone will need all these types of insurance, it is important to consider which ones may be necessary based on an individual’s unique circumstances.
Consulting with a trusted insurance agent or financial advisor can help individuals make informed decisions about which types of insurance plans to purchase.
1 eHealth. “How Much Does Individual Health Insurance Cost?”
2 Forbes. “Is Dental Insurance Worth The Expense?”
3 eHealth. “Vision Insurance – Eye Insurance Plans for Individuals and Families”
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.??
Coverage may not be available in all states, including but not limited to ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policies and riders for benefit details, definitions, limitations and exclusions. For availability and costs, please complete the form above.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. For Tier One, coverage is underwritten by Tier One Insurance Company.
Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance
Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
Tier One Insurance: Critical Illness: In Delaware, Policy T71000DE. In Oklahoma, Policy T71000OK. In Virginia, Policy T71100VA. Dental, Vision, Hearing (DVH): In Delaware, Policy T80000DE. In Idaho, Policy T80000ID. In Oklahoma, Policy T80000OK.
Aflac: Life: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100?A68400. In New York, NY68100?NY68400. In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Critical Illness: In Delaware, Policies B71100, B71200, B7130H & B7140H. In Oklahoma, Policies B71100OK & B7110HOK. In New York, Policy NY72100. Dental: In Delaware, Policies A82100R– A82400R. In Idaho, Policies A82100RID–A82400RID. In New York, Policies NY82100–NY82400. In Oklahoma, Policies A82100ROK–A82400ROK. In Virginia, Policies A82100RVA–A82400RVA.
Aflac WWHQ | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211 ??