Insurance Basics

What is insurance?

Insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment.

What kinds of insurance are there?

• Life Insurance - Insurance to be paid to a beneficiary when the insured dies.
• Health Insurance – Insurance against loss by illness or bodily injury. The University of Nebraska has put out Health Care Costs in Financially Troubled Times to assist with those important insurance questions when there is a loss of income.
• Homeowners Insurance - Insurance that combines liability insurance and hazard insurance. Required by most mortgage lenders.
• Renter’s Insurance - A type of home insurance that protects the holder against accidents, damages, and losses that occur in a rented residence.
• Automobile Insurance
  Uninsured Motorist - An automobile policy option which covers one for property damage and bodily injury caused by another motorist who does not carry liability insurance.
  No fault – Automobile insurance system used in Michigan to discourage lawsuits, in which an accident victim collects from his/her own insurance company, regardless of who is at fault.
• Long Term Care Insurance
  The Consumer Law Center has developed some information on many important questions when looking at Long Term Care Insurance.

  • Introduction
  • Who pays for long-term care?
  • Who should buy long-term care insurance?
  • What coverage is available?
  • Who offers long-term care policies?
  • What do contracts provide?
  • Who determines if you are entitled to benefits?
  • Cost of a policy
  • Ripe with the potential for fraud
  • Seniors: targets for scams
  • Dirty tactics
  • Switching plans or upgrading coverage
  • Considerations when buying a policy
  • Policies from your employer

Meeting Families Insurance Needs – Insurance is a necessary component to ensuring your family’s health and wellbeing if an income loss occurs. This fact sheet examines the need for insurance so families may be prepared if economic devastation occurs in their family.

For more resources on long term care insurance planning, please see the Financial Security in Later Life National website for more information.