Caleb Meriwether, Haven Insurance Partners, visits with Dan Reaves, host of ‘The Dan Reaves Show,’ today, and each Wednesday at 3:30 p.m., to discuss all things insurance.
Navigating the world of insurance can be overwhelming, especially when you’re trying to understand which types are essential for protecting your family, your income, and your future. Let’s break down four major types of coverage—life insurance, disability insurance, health insurance, and voluntary benefits—to help you make informed decisions.
Life Insurance
Life insurance provides financial protection to your loved ones in the event of your death. There are two main types:
Term Life Insurance – This policy lasts for a specific term—typically 10, 20, or 30 years—and pays a death benefit if you pass away during that period. It’s generally affordable and ideal for covering temporary needs like mortgages or college tuition.
Permanent Life Insurance – This includes whole life and universal life policies, which last your entire life as long as premiums are paid. These policies build cash value over time, which can be borrowed against or used later in life.
Life insurance is a cornerstone of a strong financial plan, especially if others depend on your income.
Disability Insurance
Your ability to earn an income is one of your most valuable assets. Disability insurance replaces a portion of your income if you become unable to work due to illness or injury.
Short-Term Disability (STD) – Covers you for a few weeks to a few months, typically kicking in after a short waiting period.
Long-Term Disability (LTD) – Provides coverage for several years or even until retirement, though it usually starts after a longer elimination period (often 90 days or more).
Disability insurance ensures you can still pay your bills and maintain your lifestyle, even if you’re temporarily or permanently unable to work.
Health Insurance
Health insurance helps pay for medical expenses, including doctor visits, hospital stays, prescriptions, and preventive care. Common plan types include:
HMO (Health Maintenance Organization) – Lower premiums, but limited to in-network providers and referrals are typically required.
PPO (Preferred Provider Organization) – More flexibility in choosing doctors and specialists, including some out-of-network coverage.
HDHP (High Deductible Health Plan) – Lower monthly premiums, higher deductibles, and often paired with a Health Savings Account (HSA).
Health insurance is essential for protecting against unexpected, potentially catastrophic medical costs.
Voluntary Benefits
Voluntary benefits are supplemental insurance options often offered through an employer. These benefits are typically paid by the employee through payroll deduction and may include:
Accident Insurance – Pays a lump sum if you suffer a covered accident.
Critical Illness Insurance – Provides a payout if diagnosed with certain serious conditions like cancer, heart attack, or stroke.
Hospital Indemnity Insurance – Helps cover hospital stays and associated costs not fully paid by your health plan.
Voluntary benefits offer extra protection and let you tailor your coverage to your unique needs.
Final Thoughts
Each type of insurance plays a distinct role in safeguarding your life, income, and health.
Understanding how they work together helps you build a strong safety net—for yourself and the people who rely on you. Many of these coverages are offered by employers and/or association groups – if you are unsure of what you have/need, set a time to discuss with your agent.
