Health insurance covers hospitalization, treatment, and pharmacy costs. However, if one’s illness, disease, or disability leads to an inability to work, it will not help one cover the loss of income. In such cases, having a disability insurance plan benefits one as it pays 40 to 80% of the monthly income to cover household expenses and make necessary payments. Disability insurance helps people pay for their committed expenses and saves them from bankruptcy. What is disability income insurance? Disability income insurance is a policy that replaces a part of the income of individuals who cannot work due to a disability. The disability can be congenital or recurrent diseases, temporary or permanent mental illness, or an injury suffered during an accident. The disability income insurance can be for short-term up to 2 years for long-term for 5, 10, or 20 years, based on the policy terms. The disability insurance income policy can replace a part of one’s income, cover any bonus income, and provide one with tax benefits. Ten facts to know while buying a disability insurance plan 1. How disability insurance works Disability insurance works like any other insurance, where one can buy a plan and pay a premium. If one faces any sudden illness, injury, or disease that affects one in such a way that one cannot work as before, one can claim benefits. Depending on the type of disability insurance one purchases, the insurance company will verify one’s claim and check if one qualifies for a settlement. One has to prove that one has been unable to work due to a disability and has had no income for a specified period. Once satisfied, they will pay a specific percentage of their monthly salary to help them manage household expenses. 2. Knowing the right type of disability insurance one need The two main types of disability insurance are:

Cruise trips let one relax and enjoy the open seas. While aboard, individuals can benefit from several entertainment options and amenities. There are dance sessions, indoor games, pools, parties, live music, delicious food, and lots more. Still, cruise trips can be expensive and sometimes even lead to unexpected incidents. That’s why having cruise insurance is important. It covers the cost of dealing with unforeseen circumstances, ensuring one’s holiday does not lead to financial hardships. Cancellation coverage When booking a vacation, one must always be open to the possibility of things not working out. There might be changes at work, a last-minute invitation to an important event, or something else one cannot control. In such situations, one might have to cancel their trip. One might even need to cancel because their health hasn’t been great the last few days or a family member has had a health emergency. Canceling the cruise booking can lead to a lot of worry because the individual might lose the money they put into making the reservations. Sure, one can try using their travel insurance, but most cruise bookings have strict policies for cancellations that regular travel insurance might not cover. People can lose all the money they put into the vacation without even having the chance to enjoy it.  But  with cruise insurance, travelers can rest assured that they will not lose money because of last-minute cancellations.  Most cruise insurance policies cover cancellations in unforeseen events, so one can enjoy the peace of mind that they will get a refund for their cruise expenses. Health emergencies Today, most ships have advanced medical facilities and experienced staff who can handle health issues and basic emergencies. Still, one can never depend on the onboard health amenities for everything. Some medical conditions might require the individual to be taken to a shoreside hospital or facility for proper treatment.

Boating is a relaxing and exciting pastime; buying a boat can ensure an adventurous outing. But just like any other investment, it requires some considerations, like financial planning, safety precautions, and maintenance. Amongst these, insurance is one of the most important considerations. Insuring a boat means safeguarding one’s vessel against unforeseen risks and liabilities, but many first-time boat buyers make certain mistakes while buying insurance that cost them money. Thinking other insurances will cover one’s boat Many homeowners or renters’ insurance policies may protect one’s boat, but boat owners should not rely entirely on these policies. These hybrid policies that cover multiple assets have a low limit for watercraft coverage and can be incredibly restrictive regarding payout or types of damages or issues they cover. For instance, these policies may not cover collisions, sinking, or disablement. Certain types of boats may also be excluded from protection altogether. So, one may have to pay for damages or expenses partially or majorly out of pocket. These insurances, at times, may be suitable for kayaks or canoes. To put it in perspective, a typical home policy may give around $1,500 coverage to one’s boat in case of damages, while buying dedicated boat insurance can cover the full replacement cost. So it’s best to get separate insurance for one’s boat. Not knowing how to insure a boat Before insuring a boat, one must be well-equipped with how it works. First-time buyers may get confused and buy the wrong boat insurance that lacks sufficient coverage or fails to meet their needs. Choosing the wrong type of insurance can end up burning a hole in one’s pocket and leaving one vulnerable to financial losses. There are three ways to insure a boat: for its actual value, replacement cost, or agreed value. ACV: As the name suggests, the actual cost, also known as actual cash value or ACV, factors in depreciation, and if one faces boat damage or loss, the insurance company will pay back the cost of the boat minus its depreciated value.

Medicare is a federal health insurance program for individuals over 65  years of age , those with disabilities, or those with certain diseases like permanent kidney failure. In times of health emergencies, Medicare plans can provide a financial safety net  to people  by fully or partially covering their treatment costs.  But, there are several conditions individuals must fulfill  to be eligible for a Medicare plan.  Not knowing these can lead to financial setbacks during health emergencies. Things to know before choosing Medicare coverage Medicare has different  parts Medicare has various parts. Part A, also called Hospital Insurance, covers inpatient hospital stays, care received in nursing facilities, and home care services to some extent. Part B, or the Medical Insurance, covers all expenses related to routine doctor visits, outpatient care, medical supplies, and preventive services. Medicare   Part  A and Part B are called the Original Medicare.  Further, Part C is the Medicare  Advant age plan that offers an alternative to Original Medicare, while Part D is the prescription coverage that covers the cost of recommended treatment options. One can purchase Part A and B from the government, while Part C can be purchased directly from a private healthcare company. There is also the Medicare Supplemental Insurance or Medigap, which can be an add-on to the Original Medicare plan. Medigap helps cover costs that Original Medicare does not cover, like copays and deductibles. Medicare has a team to address  queries One can sign up for Medicare through its official website. One can also compare plans on the website in one’s area and talk to agents to get the most suitable deal  among all . Those  who have  queries related to Medicare plans can reach out to the sales team in their area or talk to Medicare brokers or advisors. They can not only resolve queries but also help one to get enrolled.

Life is unpredictable, which is why, many choose to get life insurance that can offer them and their loved ones financial security. Here there are mainly two options, opting for a fixed term insurance policy (term life insurance) or lifetime coverage (whole life insurance). The latter is more expensive but offers lifelong coverage, offering some peace of mind to policyholders. But it may not be the best option for everyone for a few reasons. 1. Lack of transparency One of the primary issues with whole life insurance is that it is often sold inappropriately and made to sound too good to be true. Agents and insurance providers may not share details regarding certain costs, like commission to the salesman, administrative costs, and the actual cost of the insurance. If such hidden costs are revealed beforehand, the terms may be unclear. As this is already an expensive policy, the hidden details can make one regret the decision later. 2. Unnecessary coverage Whole life insurance is often worth less than it costs. The death benefit it offers is also lower than term insurance. Also, whole life insurance might be unnecessary specifically for certain people, like single policyholders. Here, nobody depends on the income of the policyholders, so they do not need to buy insurance for a death benefit. Alternatively, if the policyholder has only a partner as the dependent, they may be better off investing elsewhere and getting higher returns that they can leave behind for the partner. A whole insurance would be unnecessary here. Instead, one can opt for term life insurance to save money on premiums and get a bigger death benefit for their partner. 3. Expensive premiums Compared to the term life insurance, whole life insurance can be quite costly. For instance, where a term life insurance policy would come with an average monthly premium of a few hundred dollars, say $300–$400, whole life insurance premiums tend to be thousands of dollars—about $4,000–$4,5000.

Term insurance can protect one’s loved ones in case of the insured’s demise.  But  whole life insurance policies cover the policyholder’s life and are the best way to get money back even during the insured’s survival.  A whole life insurance plan comes with a premium-return benefit and helps build cash value. It is permanent life insurance, wherein one does not have to worry about the coverage expiring as long as premiums are paid on time.  Top reasons whole life insurance is the right choice Protects the insured’s family Like traditional life insurance policies, whole life insurance provides death benefit protection. So, it will keep the insured’s family secure even in case of the insured’s demise. Since whole life insurance fully protects one with their first premium payment, it can be an excellent medium to leverage one’s money. Returns premiums paid on survival In term life insurance, the policyholder bears the cost of offering a secure financial future to their family. But, if the insured survives after the policy term expires, the premium becomes a sunk cost. While the premium amount one bears is nominal, it’s better to recover all the money paid upon surviving the policy term. So, if that’s what one seeks, whole life insurance is the right choice for them. Offers tax-advantaged growth Beyond the tax-free sum, one can leave for their loved ones the cash value increment on a tax-deferred basis. So, one can take a loan against the value and pay the money back as per the term, or the amount gets deducted from the money one leaves for their loved ones. It is easier to assess this tax-free asset compared to other assets one keeps for their heirs. While the taxes may impact assets like a property or other aspects of the estate, such is not the case with whole life insurance.

Whole life insurance is a type of permanent life insurance. It offers lifelong coverage and several guarantees, which appeal to many. Beneficiaries can claim the death benefit after the policyholder’s passing if the premiums are paid on time and all the plan’s guidelines are followed. One can also receive dividends and access unique features like cash value accumulation. That’s why people shopping for life insurance should consider a whole life insurance policy. Lesser-known features of whole life insurance Whole life insurance plans have been around for a while, so many are familiar with their benefits. For example, people know they offer coverage for the rest of their lives and that their loved ones will receive a guaranteed death benefit when it is time. But that’s not everything. Whole life insurance also has other features that still need to be explored. For instance, some do not know they can tap into it even while alive. And being unaware, they tend to overlook whole life insurance, losing out on a great investment opportunity. Dependable death benefit that can be used for anything If someone is the sole breadwinner, it is understandable for them to put their loved ones’ financial well-being first. Whole life insurance can help people materialize this goal. It gives the beneficiaries, whether the spouse, an aging parent, a child, or someone else, a potential tax-free death benefit. Loved ones can use the death benefit for anything. For instance, they can use it to meet everyday expenses, repay loans or mortgages, pay for the funeral, and fulfill any other need they may have going forward. Unlike term insurance, whole life insurance covers one’s entire life, regardless of how many years the policyholder lives. Of course, the guarantee remains active as long as the individual pays the premium amount. Reliable locked-in rates The premium amount remains the same in whole life insurance plans.