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INSURANCE
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Health Insurance
Basic Plans
Basic health insurance plans are those designed to cover individuals and families who
may not qualify for other types of health insurance. The Affordability Care Act allows states to
create basic health plans that are affordable pursuant to an individual’s income. A basic health
plan covers many of the same issues as other health plans but will be at a more affordable cost
for low-income individual’s who do not qualify for government funded insurance. They may
have limits on procedures that are associated with the long term care of certain diseases such as
diabetes or Alzheimer’s.
Major Medical
Major Medical plans are created to cover an entire range of medical costs including
hospital stays, diagnostic procedures and most other medical needs. Patients pay deductibles and
are forced to cover many out of pocket expenses.
Most medical, dental and vision expenses are covered by major medical plans. Pre-existing
conditions, experimental, as well as controversial procedures may not be covered however.
Managed Care Plans
Managed care plans such as HMO’s and PPO’s were established as a way to control the
cost of health care. The patient must use physicians and healthcare providers that agree to the
cost per service the HMO and PPO insurance company requests. To seek the service of a
physician or practitioner outside of the recommended network, the patient must first get approval
INSURANCE
from the HMO/PPO. The patient will have to pay more for the service to cover what is not
allowed by the HMO/PPO. Most elective procedures, such as plastic surgery, aren’t covered
under managed care plans. Pre-existing conditions are often excluded (“Understand”, 2012).
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Government Funded Plans
Government funded plans include Medicare and Medicaid. These plans cover most any
expense related to healthcare including dental, vision and wellness checks. Like basic health
plans that are designed to cover a variety of costs and procedures, Medicare/Medicaid will cover
most issues, including pre-existing conditions and long term health care that is needed for
chronic diseases (Day, Garrett & Connolly, 2011).
Auto Insurance
Collision
Collision and liability insurance covers just what they describe: limited damages and
liabilities incurred due to an automotive collision between vehicles or a vehicle and property.
Collision insurance only pays out the book value of the vehicle, not the cost of a new car.
Collision insurance may also limit the amount of money that is paid to fix your car, since the
bulk of the money will be used to repair the vehicle of the other person involved. If both drivers
are covered, it may be agreed by the insurance companies that each company will cover the
damages to the car they ensure.
Comprehensive
INSURANCE
Comprehensive insurance policies cover almost any liability or damage, both medical
and collision received because of an accident. Unlike collision insurance, however,
comprehensive covers any damage including that received from hail, tornadoes and other forms
of natural disaster. Coverage is extremely expensive compared to other policies and older cars
are often times not worth the added expense.
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Uninsured Motorist
Liability or uninsured motorist policies protect your car in the event you are involved in
an accident with a driver who is not carrying any automotive insurance. It may also be used if
the other driver does not have enough coverage to pay for the damages to your car. Your
insurance company will cover the cost of the damages and repair your vehicle. They will then
pursue the other driver in court to cover the amount of money they had to pay.
PL/PD
PL/PD or Public liability/Public damages is the state required minimum amount a person
must pay to be legally covered by insurance. If you purchase a PL/PD policy and are then
involved in an accident, the liability (medical) and the damages to other car or property will be
paid for under your coverage. You will be responsible for the cost of repairing your own vehicle
or other personal property.

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