Uninsured Motorist Coverage in Virginia
Reader’s Question:
My agent has suggested to me that my automobile insurance policy should have a rider called an uninsured motorist provision. Aren’t all drivers forced to have insurance in Virginia? Why is this necessary or is he just trying to add a rider to my auto policy?
Lamar
Fredericksburg, VA
Hello Lamar,
You are correct that each operator of a motor vehicle in Virginia should be insured. What your agent is recommending does make sense. Unfortunately, many operators have auto insurance that is lacking in the amount of coverage. This “under insurance” could come back to haunt you. With today’s rising costs, auto policies have added this protective rider to protect you against a driver with low limits or a driver who is operating without insurance.
Generally the uninsured provision of your auto policy has two categories. Bodily injury and property damage in accidents involving an uninsured operator would be covered. The bodily injury provision covers medical expenses for yourself and your passengers.
Your auto policy would also cover damages to your vehicle resulting in an accident caused by an underinsured operator. As a matter of interest, the uninsured operator provision is not available in all states. Your agent is only watching out for your best interests. There are drivers who try to trim costs by lowering their coverage in their auto policy. We are glad you are not one of them, Lamar.
Life Insurance Policy and Annuity in Virginia
Reader’s Question:
We are from Virginia and we have been considering investing in life insurance or an annuity. Can you help me sort this out? They seem to have similarities. What are the differences?
Geoff
Richmond VA
Good day, Geoff,
There are similarities. You are correct. It is safe to say that both annuities and life insurance serve purposes that would enhance any long-term portfolio. Annuities and life insurance both offer death benefits. How you view the importance of the death benefit may help you determine which program better serves your purpose.
Life insurance is usually for the purpose of the owner’s loved ones. In the event of an untimely death, the beneficiaries receive a tax free death benefit. This amount is guaranteed when the policy is purchased. While annuities generally provide a death benefit, they also provide income for the owner. An annuity is a tax-deferred method of growing your investment that provides lifetime income.
Deferred annuities and immediate annuities are the two central investment programs. As implied by their names, there are differing income and tax benefits to these products.
Term Life and whole life are the common life insurance programs. With term life, you are purchasing a death benefit and building no cash value. With whole life, you are investing in a death benefit program that builds cash value and in many cases offers dividends.
Geoff, your Virginia insurance agent will be able to help you shape an annuity – life insurance strategy that best suits your goals and benefits your loved ones. These are rewarding considerations. With that note, I’d say good luck planning your future.
Get Cheap Auto Insurance in Virginia
Reader’s Question:
I need cheap auto insurance. Just like everyone else in Virginia. Got any ideas?
Hal
Chesapeake, VA
Yes Hal, you are right. Cheap auto insurance is everyone’s dream. Maybe we can help, but you’ll have some work to do. One thing to consider is combining the coverage. By having multiple vehicles on the same policy, you will be taking a step to cheap auto insurance. Ask you agent if you’ll get a discount for two or more vehicles.
You can also lower the risk. If you do not have anti-theft instruments on your car, install them. This will start you on the road to cheap insurance. You can also complete safety driving courses and maintain a good driving record in Virginia.
Group Discounts are also available. Do you belong to any groups or associations that offer cheap auto insurance as reward for membership? Make sure this coverage is appropriate but take advantage of these substantial savings. Perhaps you can encourage your group to offer group auto and the related discounts?
Finding cheap auto may take some initiative. Know your mileage. How far do you drive to work? Identify the primary use of the vehicle. This information can save you money. The cheapest auto insurance is usually an annual policy. Shorter term policies cost more money. Want to save, go for the extra time. Obviously you need to shop so have all your vehicle information and driving history record ready.
Discuss this with your agent in Virginia or on-line provider. Go for it, Hal!
Prerequisite for Virginia Health Insurance
Reader’s Question:
Are there any pre-requisite questions I need to ask before I jump into buying health insurance from the individual market in Virginia?
Rhea
Alexandria, VA
Glad you asked, Rhea.
Definitely there are a number of essential information you need to ask and know before you buy an individual health insurance policy in Virginia. This is for you to have the chance to cross examine and understand how any health insurance policy works and what it covers. Most health insurance policies do not offer comprehensive coverage that you can find in group polices. You better ask what services are covered in your prospective health insurance policy. Rehabilitation, mental health, substance abuse, and eye care are the most not included in health insurance coverage. It is also a fact that most policies offer a limited prescription drug benefit or no prescription benefit at all. However, I know of some health insurance policies which offer these and other benefits in the form of separate riders, which of course will have a corresponding cost.
Aside from that, you also have to ask if there are limits on the health insurance coverage. There are really some health insurance policies which put limits on the amount the insurance company’s share for a covered medical service. Some would also establish a limit on the amount you pay out of your pocket. An example would be a limit of $5,000 as out of pocket spending in a year. Different health insurance companies would have different out of pocket maximum.
Getting Health Insurance in Virginia
Reader’s Question:
What are my rights to be insured and how can I start getting my own health insurance in Alexandria, VA?
Sam
Alexandria, VA
Hi there Sam!
Your rights to be insured really depend on your current circumstances. For example, it you apply health insurance in Alexandria, VA through your employer, our federal law states that the health insurance company cannot deny you coverage because of a medical condition nor can it charge you more than what the other employees are being rated. With group health insurance coverage, application process would be simpler as compared to applying on your own for individual health insurance policy. If you are currently employed and you need to know your insurance rights, suggest you verify your rights from the US Department of Labor’s Employee Benefits Security Administrations hotline.
If you are self-employed you can start getting covered through applying on your own through an individual insurance coverage in Alexandria, VA. I will have to warn you that your application process might be more tedious and it might be harder to obtain individual health insurance coverage. It can be more expensive too and can be less consumer-friendly, although better than not having any coverage at all. You never want to get wiped out financially in case you get ill. You can start asking around first and try to shop around for individual policies from online quotes and independent health insurance agents. Be advised that health insurance agents need to have license to sell which are issued by the state.
Getting your Own Health Insurance
Reader’s Question:
I am still covered under my parents this year. I will be turning 23 next year and I will be dropped out soon from my parents’ health insurance in Virginia. What are my options?
Casey
Chesapeake, VA
Hello there, Casey.
It’s good that you are thinking about your health protection at an early age. Besides, if you are planning to attend graduate school after college, you might be required a student health insurance card on your own or from the school’s. Although, if you plan to work after your graduation (I’m assuming you will graduate this year), then you might be covered from your employer’s group health insurance. But whatever your choices are, it is to be your first priority to get your own health insurance coverage as soon as you are dropped out from your parents’ coverage.
Why? Because adolescents up to your age are one of the high risk age group that face serious health challenges. Although I am not saying that you are one of the statistics, but your age bracket include high rates of pregnancy, suicide, substance abuse, mental/emotional illness, poor nutrition, HIV, and other sexually transmitted diseases. As soon as you can, get all of the coverage you need. Don’t wait until the first ER trip pegs you a whopping $10,000 medical expenses.
Before you decide, you should have a clear picture of where you are heading and ask yourself questions like: Am I heading the military? Am I going out-of-state for college? Am I going to get a job that pays well? If you can answer these questions, then you will be able to decide on your health insurance options in Virginia.
Do you Need a Newborn Life Insurance?
Reader’s Question:
I have a newborn baby and an insurance agent is giving me a baby life insurance quote. Do I need a baby life insurance? Which type should I pick in Virginia?
Holly
Alexandria, VA
You are probably very excited this time in your life…and might be quite excited in securing your baby’s future. However, is it really a good idea to get your child a baby life insurance?
Most insurance companies in Virginia nowadays offer life insurance policies for babies in order to give him/her a good ‘financial head start’. Baby life insurance rates are usually affordable and guarantee your baby’s future insurability, even in the event of a health condition that will deteriorate. In case the child dies, most policies for baby life insurance even offer burial costs. Most life insurance companies would encourage you to buy a whole life insurance policy for your baby instead of the straightforward term life policy by highlighting the cash value which your child can take advantage of in the future.
These benefits and ‘fringe benefits’ can be quite tempting for any parent like you! But the question is, is it really essential?
Before you join the bandwagon of Americans who have been lured into buying baby life insurance policy, you better be warned first. The bottom line is, the cost of a baby life insurance is much higher than the benefits gained, especially if you are underinsured. Better get enough life insurance for yourself before you buy one for your child.
Cheaper Alternative to Life Insurance Policy?
Reader’s Question:
I have a medical condition and I have been rejected so many times by life insurance companies Hampton, Virginia. Up to this day, I am uninsured and I can not get any life insurance. Is there any cheaper alternative to a life insurance policy? Now is the time that I need it most due to my health conditions.
Barbara
Hampton, VA
Good thing you asked, Barbara.
In Virgina, this is really a common problem for those with medical conditions: they become classified as uninsurable and hardly get any life insurance policy. However, it is not really to cause you any disappointment, as there is a discount medical cards being offered to specific memberships. The Consumer Health Alliance card is one that offers a discount cards, and is gaining popularity because members who have the cards are allowed to get access to healthcare without the limitations and paperwork associated with life or health insurance.
Is there a monthly membership fee? Yes, there is. But fees are normally very nominal. You need not worry too because your medical history does not warrant your approval to get the discount cards. This is specifically designed for the underinsured or to those qualified as uninsurable because of medical conditions.
Is Term Life Insurance the Cheapest Policy Out There?
Reader’s Question:
An agent of a life insurance company here in Virginia suggests I should get a term life insurance if I want a cheap life insurance rate. Is she correct in saying that a term life insurance policy is the cheapest and the most popular option of all life insurance policy offerings?
Martha
Alexandria, VA
Thank you for asking Martha
Yes. Term life insurance is the simplest to understand and poses to be the cheapest to buy on a net cost basis. It provides death benefits without any savings, investment, or “cash value” components for the coverage period.
Over the set period of term, you are guaranteed that your premiums will not increase. The company cannot cancel you as long as you regularly pay your premiums. Term life insurance remains to be the popular choice due to its guaranteed renewal and guaranteed convertibility.
You can get instant quotes from the internet so you can compare the rates given to you in Virginia. Also ask your life insurance agent in Virginia if the policy offered to you contains guarantee renewable option, which grants you the right to continue coverage beyond the initial rate guarantee period without a medical exam. Also verify if it is guaranteed convertible, which reserves you the right to convert your coverage to any cash value policy that the company might offer at current rates without having to take a physical exam.