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Protecting Your Assets with Insurance · Talking FACS

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  Welcome to Talking FACS, what you need to know about family,
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  food, finance, and fitness.
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  This nationally recognized, award-winning podcast is hosted by the University
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  of Kentucky Family and Consumer Sciences Extension Program.
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  Our educators share research knowledge with individuals, families,
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  and communities to improve quality of life.
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  Hello, and welcome to Talking FACS, what you need to know about family,
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  food, finance, and fitness.
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  I'm your host, Mindy McCulley, Extension Specialist for Instructional Support
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  with Family and Consumer Sciences Extension at the University of Kentucky.
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  We are housed in the Martin Gatton College of Agriculture, Food, and Environment.
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  When it comes to insurance, we know that having adequate coverage is important,
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  but insurance can be confusing.
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  My guest today, Dr. Nichole Huff, Assistant Extension Professor for Family Finance
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  and Resource Management is here to shed some light on how protecting our assets
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  with insurance can make certain that our financial future is secure.
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  Welcome, Nichole. Hi, Mindy. So let's just jump into it with both feet by discussing
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  a few important types of policies for listeners to have.
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  Yeah, well, I think as you introduced the topic, you hit the nail on the head.
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  Like insurance is essential, but it can be very confusing.
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  And because it's one of those things you kind of take a gamble with, right?
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  Like that maybe I won't need it. So it gets really hard to pay for something
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  you're not sure that you're going to need.
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  But it really is a good step to ensuring that you take care of your financial future, Sure.
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  Especially when unexpected life events or emergencies happen and no one is exempt from those.
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  And so what we'll talk more about today are just three very basic types of insurance coverage.
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  So we'll talk automobile insurance, homeowners or renters insurance and health insurance.
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  So we're going to start with auto insurance. insurance. And I feel like this
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  one's a no-brainer because don't we have to have insurance on our automobiles if we drive?
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  Well, you're supposed to. So if you own or operate a vehicle in Kentucky,
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  you must have insurance.
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  But an estimated 16% of drivers in Kentucky are uninsured.
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  And so this is something that the Kentucky Transportation Cabinet and the Kentucky
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  Legislature are vowing to crack down on uninsured motorists across the Commonwealth.
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  And so, if you're one of that 16% or if you are not sure if you have adequate
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  coverage, check on that.
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  So, what mandatory insurance is required for motorists in Kentucky?
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  The state of Kentucky requires that all drivers are insured under a minimum liability coverage.
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  And this type of policy is often described as a 25-50-25 policy.
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  And so, this means that you are insured up to $25,000 per person for bodily injury,
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  $50,000 per accident for bodily injury, and $25,000 per accident for property damage.
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  And so if that is confusing, reach out to your agent. So if you have a policy,
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  have them explain what that means.
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  And if you're working with someone, you know, it's their job to make sure you're
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  meeting those minimum liability coverage requirements.
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  But reach out if you have questions about your policy. And then if you're borrowing
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  money to pay for the car, you also must make sure that you meet the requirements
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  of both the state and the lender.
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  And so, you know, depending on where you bought that car, you may have some
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  different insurance requirements.
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  And so often lenders require collision and comprehensive coverage,
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  but that'll depend on your loan.
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  And so just double check all of that with your policies.
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  And that's the minimum? Yes, that's That's the minimum, right?
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  And so, if you have questions about if you're properly insured or different
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  options in addition to that minimum, visit the Kentucky Transportation Cabinet's
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  website, and that'll be linked in the show notes for today. Most definitely.
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  And if you have purchased a vehicle recently, you probably know the vehicle
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  costs are increasing, so that minimum may not be enough to cover the cost of that vehicle.
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  Yeah, good point. So another valuable asset that many people have is their home.
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  And we want to ensure that our home is protected in the event of a loss,
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  a natural disaster or a fire or something like that.
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  So we learned a lot about natural disasters during our podcast series in the face of disaster.
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  But will you remind our listeners about why it's important to have proper insurance
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  to cover our dwelling or our homes that we might own or rent.
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  Yeah, we have. Many of us have learned, many Kentuckians in the last several
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  years have learned this, the importance of home insurance when it comes to unexpected
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  emergencies or disasters.
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  And so, yes, insuring your home is vital to protecting your assets.
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  And so, that's if damage or theft occurs as well. Well, for homeowners,
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  when you're owning a home, homeowners insurance protects what's inside of your
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  home as well as the property.
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  And so lenders typically, again, they're going to have require that you have
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  some type of homeowners insurance while you make payments on your mortgage.
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  And so common types of homeowners insurance include dwelling,
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  other structures you may have on your property, such as a barn or a detached garage.
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  Personal property within your home or on your property, loss of use,
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  personal liability, and then medical payments to others.
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  So if someone is hurt on your property, you also may be required to have hazard
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  or flood insurance depending on where you live.
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  And so it's really important, again, to talk to your insurance agent because
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  what we learned with many of the natural disasters is you mentioned the cost
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  of cars on the rise. Well, homeowners prices are on the rise as well.
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  And so is replacement costs for things.
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  And so if you haven't updated your policy recently, you may not be able to cover
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  the replacement cost if something had to be repaired or rebuilt at current value.
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  And so you want to make sure that you are ensuring your home that it covers
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  inflation and rising prices.
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  And so review your coverage regularly. Regularly talk to your agent about inflation
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  riders or current replacement costs.
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  And if you are protecting your assets as you think you are, so many people believe
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  they're covering it, but when an emergency happens, they realize they haven't read that fine print.
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  And so before you sign anything, always read the fine print,
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  follow up your agent if you have any questions, and then regularly review your policies.
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  Well, mentioned that a lot of people who have a mortgage on their home are required
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  by the lender to have insurance.
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  But just because you have paid off that home doesn't mean you should drop that insurance.
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  Right. Because you still have a home and you want to be able to replace that
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  home in the event of a disaster. Right.
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  Yeah, that's absolutely right. And so it is not one of those things you want
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  to take a gamble on because as we keep coming back to natural disasters,
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  because it is so fresh on our minds.
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  But in the event that something happens, you want to make sure that you have
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  a place to live and that you can afford the cost and the repairs and the replacement.
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  But also, let's talk about renters before we switch to health insurance.
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  So for renters, rental insurance can also protect against your personal property,
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  not the dwelling, but your personal property from disasters or theft or emergency disasters.
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  And so Kentucky does not require renter's insurance, but most property landlords do.
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  So chances are good if you're renting, your landlord required you to have a
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  renter's insurance policy.
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  But even not, if not, you may want to consider it.
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  It works much like homeowner's insurance, but it doesn't protect the value of
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  the residence, you know, that is on the landlord.
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  But what it does, it's there to protect your personal property and any liability that you own.
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  And so it's a good, you know, we've linked another good resource in the show
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  notes for you to learn and more about homeowners or renters insurance.
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  But if something were to happen to that dwelling and you didn't have renters
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  insurance, then everything that you own that was inside that dwelling,
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  you would be out of pocket for.
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  And so if you want to insure or be able to replace the value of that,
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  then talk with your agent about
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  an adequate, and most renters insurance policies are very inexpensive.
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  And so, and it could be well worth it in the event that you ever needed it.
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  You alluded to the last type of insurance that we're going to talk about is health insurance.
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  So we could definitely do a whole podcast series on understanding health insurance,
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  because it seems like that there are nuances and loopholes and all kinds of different things.
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  But just in a nutshell, what are some of the essential terms that our listeners
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  need to consider when assessing their health insurance needs?
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  Yeah. So another type of cost soaring is health care costs. I think everything
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  is expensive right now, right?
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  Like it's just, it's expensive time in history to live.
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  So with health costs soaring, it is also, you know, it's important to just understand
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  the type of coverage you need, but all associated costs.
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  And so it's like with any type of insurance, understanding what the policy covers,
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  but what it doesn't cover.
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  And so when you're comparing your health insurance plans, there are four just
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  basic terms that will have the biggest impacts on your budget. One is the premium.
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  So the premium is the amount of money you'll pay monthly or quarterly or annually,
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  depending on your policy.
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  Then there's your deductible. Your deductible is the amount of money that you
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  have to pay before your health insurance will cover expenses.
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  So another important concept is co-payments.
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  And so that's the amount You must pay after insurance for prescriptions and appointments.
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  And so you would pay this regardless.
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  And so what is your copayment for different types of appointments?
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  So that might be just a regular doctor's visit.
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  Is preventative covered? What about sick visits?
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  What about ER visits? So what are those different types of copays for appointments and prescriptions?
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  And then finally, your maximum out-of-pocket cost.
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  And so that's the total amount you'll be expected to pay per individual,
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  per family, but before insurance will cover the remaining.
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  And so health insurance is another. other. It's people think that, okay, I'm healthy now.
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  But in the event of an emergency, those medical bills can add up very, very quickly.
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  And so having an understanding, what are some of these costs associated with
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  your policies, and then weighing the different types of policies.
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  But, you know, regardless of what you choose, and some of it will be dependent
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  on if you are self-employed, if you are using an employer's plan,
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  if you're using a government-provided plan.
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  But regardless Regardless of what kind of policy, you need to make sure the
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  associated costs fit within your budget and that your insurance covers your
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  preferred hospitals or doctor's offices, preferred providers.
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  The medical facilities near you, so that you, again, aren't taken by surprise. a promise.
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  And so, with employer medical benefits, a lot of times that's deducted out of
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  your paycheck, but you still, you want to make sure that you understand your
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  policy, what you have signed up for.
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  And then Medicaid, the CHIP program, Children's Health Insurance Program,
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  or Medicare, there may also be options for those who meet income or age-based requirements.
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  And so, again, we've got a good resource on health coverage basics.
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  It'll be in the show notes.
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  And also, if you're switching policies or getting a new policy,
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  make sure you know when the policy starts so that you don't think that as soon
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  as you sign up that you are immediately covered.
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  Usually there's a waiting period or, you know, if you sign up at the beginning
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  of one month, it might not start until the next month.
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  So make sure you understand when your coverage starts so that you don't go to
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  the doctor on June 30th and it doesn't start coverage until July 1st. And so.
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  Right. And that's another good, just good tidbit while we're talking insurance
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  is, I understand if you do have waiting periods before you schedule a big procedure.
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  And this is important with, this is just major health insurance.
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  But when you're considering other types of health insurance,
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  dental, eye, that you consider some of those things as well.
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  And I do think it boils down to, regardless of what type of insurance,
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  automobile, home, renters, help, that you're talking with the people in the
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  know. And so that you, it can be frustrating.
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  You may be put on hold. That you're reaching out to the insurance representatives
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  if you, you know, sign up with a policy through your employer.
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  Or if you have an agent that you work with, that you take the time to make sure
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  you understand your policy.
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  That you ask questions. that it is their job to help you understand what you are paying for.
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  And so don't be intimidated to get answers to those questions.
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  Don't be too frustrated to get answers to those questions, but that you make
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  sure that you are protecting yourself as a consumer through insurance and that
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  you are getting what you think you're paying for. Exactly, exactly.
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  Nicole, thanks so much for taking the time to share with us because this is
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  vital to our financial security when we have the coverage to adequately protect
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  our finances and our health and our homes and our automobiles. Right.
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  Thank you. If you're just tuning in, you're listening to Talking FACS and we're
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  available wherever you listen to your favorite podcast.
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  Thank you for listening to Talking FACS. We deliver programs focusing on nutrition,
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  or contact your local Extension agent for Family and Consumer Sciences,
• 15:13
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• 15:15
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  Music.