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Insurance

Insurance is a financial tool to share the risk of a catastrophic event and prevent a devastating financial result. There are various types and forms of insurance available in the marketplace today: auto, home, umbrella, life, long-term care, health, and others. We recommend reviewing cost and coverage on an ongoing basis to adjust for changes in current and future need as well as market availability.


FAQs

What are the components of insurance?
  • Premium: The monthly amount you pay for coverage.
  • Deductible: The amount you pay before the insurance pays its portion of a claim.
  • Coinsurance: In health coverage, a percentage you pay of the total cost.
  • Out-of-pocket maximum: The maximum amount you would pay annually for healthcare.

What is gap insurance?
Gap insurance is designed to pay off the remaining loan balance on a vehicle if you’re in an accident and your totaled car is worth less than the loan amount. This may be required when you take out a loan for your car.

Is the minimum amount of auto insurance my state requires enough?
While it may be tempting to carry the minimum level of coverage required by your state, those limits may not be enough to pay for extensive medical bills and property damage if you cause an accident. If the actual costs of an accident exceed your coverage, you will be held liable for the difference.

What is an umbrella policy and why is it important to have?
Umbrella policies provide coverage in addition to your standard auto and home policies. For example, if you cause an auto accident with damages and injuries totaling $1,000,000 and your auto insurance covers $250,000, you would be responsible for the remaining $750,000. An umbrella insurance policy would cover this remaining liability.

When would it make sense to look at life insurance outside of DMBA?
Here are some cases in which you may want to consider private insurance:

  • You have medical conditions that prevent you from being approved for the coverage you need.
  • Your needs exceed the maximum coverage amount.
  • Your insurance needs will extend beyond your current employment.

What types of life coverage does DMBA offer for employees?
  • Group Term Life: Paid for through your medical premium. The benefit amount is your annual salary or $50,000, whichever is greater.
  • Occupational Accidental Death & Dismemberment: Paid if you pass away on the job or have a workplace related injury. You may choose up to a $100,000 benefit.
  • Supplemental Group Term Life: Offered for an additional cost after passing a medical evaluation. You are eligible for up to six times your annual salary.
  • 24-Hour Accidental Death & Dismemberment: Covers an accidental death or injury resulting in the loss of an appendage. You may choose up to a $400,000 benefit.
  • Life coverage and benefits may also be available for your spouse and eligible children.

How much life insurance should I have?
We recommend having 10 times your annual income before age 50 and five times your income after age 50. You should have additional insurance if you have outstanding debt. Additional life insurance considerations could include future needs for spouse and children, funeral expenses, and educational expenses.

Why do I need insurance protection?
Having the right types of insurance with appropriate levels of coverage protects you and your family in case of unforeseen and inevitable events and provides a financial cushion against financial catastrophes.

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