Let’s be real – adulting comes with paperwork. Somewhere between figuring out how to file taxes and learning how to reset your Wi-Fi router, insurance enters the chat. It may not be glamorous, but health and life insurance are two of the most powerful tools you have to protect your health, your money, and the people who count on you.
Let’s talk about two common types of insurance, why you need them, and how they can serve you in your day-to-day life.
Health Insurance
What It Is:
Health insurance helps pay for your medical care – everything from routine checkups to emergencies. Depending on your coverage, you’ll either pay a monthly premium or contribute through taxes (in the case of Medicaid). In return, your plan helps cover the cost of doctor visits, prescriptions, hospital stays, and more.
Why You Need It:
One ER visit can cost thousands of dollars. Health insurance acts as a financial safety net, helping protect your savings when unexpected medical needs arise.
How It Works: Private vs. State Coverage
Private Insurance (Employer or Marketplace Plans):
If you have private insurance – through your job or purchased on your own—you’ll pay a monthly premium to keep your coverage active. Most plans also include:
- A deductible: what you pay out of pocket before insurance kicks in
- Co-insurance: the percentage your plan covers after you meet your deductible
- Co-pays: set amounts you pay for services like office visits or prescriptions
State Insurance (Medicaid):
Medicaid is a public health insurance program for individuals who meet certain income, age, or disability requirements. In most states, it offers:
- No monthly premium
- No or low deductible
- Very low co-pays (if any)
But here’s what’s changing: Some states are starting to require adults to meet work or volunteer hour requirements – usually 80 hours a month – to keep coverage.
If you have or are applying for Medicaid, here’s what to know:
- You may need to work, volunteer, or be in school at least 80 hours per month (depends on your state).
- Exemptions usually apply if you are:
- A full-time student
- A primary caregiver for a child or disabled adult
- Living with a disability or chronic illness
- You must report your status and hours when requested by your state’s Medicaid agency.
- Be sure to check your mail and online account regularly for renewal notices or updates—many states now check eligibility twice a year.
Staying informed and proactive about your state’s health insurance laws will help give you peace of mind and keep you and your family insured.
Life Insurance
What It Is:
Life insurance is a financial safety net for your loved ones. You pay a monthly premium, and in return, your chosen beneficiaries receive a lump-sum payment—called a death benefit—if you pass away. That benefit can help your family stay afloat financially during a very difficult time.
Why You Need It:
If anyone depends on your income—like a partner, kids, or aging parents—life insurance ensures they’ll have support even if the unexpected happens. A life insurance policy can help cover:
- Funeral and burial costs
- Mortgage or rent
- Outstanding loans or credit card debt
– Childcare or college tuition
– Long-term living expenses
There are two types of life insurance, Term Life Insurance and Whole Life Insurance.
Term Life Insurance
Term life insurance covers you for a set period of time—usually 10, 20, or 30 years. If you pass away during that term, your beneficiaries receive the full death benefit. If the term ends and you’re still living (yay!), the policy simply expires—unless you choose to renew it or convert it to permanent coverage.
Term life insurance is often:
- Offered by employers as part of your benefits package
- More affordable than permanent life insurance
- Designed for short to mid-term protection during key life stages (like raising kids or paying a mortgage)
Getting term coverage is usually a simple process. You’ll start by filling out a short application and may be asked to complete a basic health exam—sometimes even from the comfort of your home. Once approved, you’ll review the offer and decide whether to move forward with the policy. It’s a great entry point for anyone looking to protect their loved ones without overcomplicating things.
Whole Life Insurance (Permanent Insurance)
Whole life insurance, also called permanent life insurance, covers you for your entire life—as long as you keep up with your premiums. In addition to the death benefit, this type of policy builds something called cash value: a savings-like feature that grows over time.
What makes whole life insurance unique:
- Your premiums stay the same over time
- The cash value grows tax-deferred
- It’s not tied to the stock market
- You can borrow against your cash value if needed
Because of these extra features, whole life insurance tends to cost more—but for some, the long-term financial stability is worth it.
Be sure to speak with your insurance agent to help you decide which policy is the best fit for you and your family’s long-term wellbeing.
Final Thoughts
At the end of the day, insurance isn’t just about being prepared. It’s about giving yourself and your loved ones a little more peace of mind. You don’t have to figure it all out at once, but the sooner you start, the better positioned you’ll be. We’ll be here to help walk you through it, every step of the way, with resources to help you continue to live a financial life that is healthy, happy, and whole.