Notes

Liability coverage: This type of insurance will only cover the medical bills and damages to the other driver if you caused the car accident. It will not cover any costs to repair your vehicle or cover your medical bills. If you are involved in a car accident and it was not your fault, the insurance policy will not pay out any money. If you are involved in a single car accident (just you) and your car is damaged, you are responsible for all of the costs to fix your car. The cost of liability insurance depends upon how much coverage you purchase and how much of risk you are. Risk is determined by the number of car accidents you have been in and how many traffic tickets you have received over a period of time. People with lower risk can expect to pay $1,300 - $1,500 per year.

Collision coverage: Unlike liability coverage, this insurance policy only pays for repairs to your own car in the event of an accident that you have caused. If the other car is damaged, you are 100% liable for the damages you caused to their car. Collision coverage costs range from $100 - $1000 per month. People with very low risk can expect to pay between $1,200 and $1,600 per year.
Comprehensive coverage: This insurance policy covers any damages to your car that are not caused by car accidents. Weather damage, vandalism, broken windshields, theft, hit and run, flooding, fire, and damages from animals on the road are all covered under this policy. This plan ranges from $140 - $270 per year.

Personal injury protection: This plan strictly covers medical bills for you and your passengers no matter who is at fault. Costs range from $5 - $20 per month or $60 - $240 per year. This more than covers the average bodily injury claim of $14,700 made each year by individuals.

Underinsured/uninsured motorist protection: This covers your bills in the case the other motorist’s insurance cannot cover the damage and medical bills. The cost varies broadly based on the state you live in.
Life insurance protects a family from the costs of a family member dying. There are four major types of life insurance plans that you should know: term life, whole life, guarantee universal life, and index universal life.

Term life: This is a temporary life insurance policy. It covers a family while the person is employed. The premium (payment per month or year) is fixed until the person reaches his or her 50s. For a unhealthy 40 year old man, the average cost is $3,000 per year for a $500,000 policy. For a healthy 35 year old woman who is a non-smoker, the average cost is $800 per year for a $1,000,000 policy. Costs will vary depending on a person's health profile, age and coverage. Payments can be made on a monthly basis.

Whole life: This covers and individual for his or her entire life. It provides a guaranteed cash value in the event of death. The premiums for this policy are also fixed. This plan is very expensive. The average cost is $8,000 per year. If payments are made on a monthly basis, it costs more.
Guarantee universal life: This life insurance policy provides a guaranteed death benefit if conditions are met. It also works to build wealth and pay a death benefit. Excess premium payments earn interest that is added to the value of the policy. It also provides access to tax-free cash during the person's lifetime. People can make withdrawals and take out loans from the account. People to make tax free income withdrawals from the policy. The premiums for this policy depend health profile, age and amount of coverage.

Index universal life: This policy can also earn interest, but the income is tax-deferred not tax-free. The owner can put cash value in a fixed rate or an equity index account. If index increases during the month, the interest is added to the policy cash value. If the index decreases during the month the amount is deducted from the policy cash value. The advantage of this policy are that it has flexible premium payments. The disadvantage is that the policyholder bears all the risk.

Property insurance protects your home from damages. Standard property insurance does not cover earthquakes and floods, they have to be added to policies.

Single peril insurance is a policy that covers losses from one event. The events are named on the policy. How does that work? Well, a homeowner who doesn't live near the ocean could select fire, hail, and earthquakes instead of hurricanes as their "peril events" on their policy. The coverage is smaller, so the cost for this policy is lower than broad form.

Broad form policy insurance is a comprehensive general property insurance. It offers broad protection for property losses resulting from a wide range of causes. Because the coverage is broader, the cost for this insurance is higher than single peril.
Health maintenance organizations (HMO) cover preventative care with a primary care physician. The policyholder can see specialist if they get a referral from the primary care physician. This insurance also covers major medical incidents. The benefits of an HMO is that its co-pays are fixed and there are a variety of doctors to choose from. The disadvantage is that the policyholder is restricted to a certain group of doctors. If you need to go outside of the network, you will have to pay for everything yourself. While the policy covers specialists, you have to get a referral from your primary care physician or else the specialist is not covered even if they are a member of the HMO.
Preferred provider organization (PPO) covers all providers within a network. Unlike HMOs, a PPO will cover the costs of doctors and specialists not in their network. If you need to see a specialist, you do not need a referral from you primary care physician. The benefits of using a PPO are that it covers both its doctors and other doctors outside of its group / network, you don't need referrals, and you have more freedom to see the doctors you want. The downside is that even though a PPO will cover a smaller amount of the bill for out of network doctors.

Exclusive provider organization covers all providers within the network. The benefit is that it covers in-network doctors. The cost is that like HMOs it doesn't cover doctors and specialists outside of the network.

Point of service provider is a hybrid of an HMO and PPO. The benefit is that select a primary care physician and can use out of network providers. The cost is that the out of network doctors will still cost you more than in network doctors.

High deductible health plans require policyholders to pay their medical bills up to their deductible, at which point the insurance would continue paying. The downside to this program is that the deductibles are high so the policyholder pays more.
Short-term health plans offer limited benefits for doctors visits and specialists during a time of unemployment or while a person is switching insurers. Short-term plans are a benefit for someone who is unemployed and has no way of paying for long term annual contracts. The disadvantage of these plans is that they are by nature temporary and therefore are extremely limited in what they cover.

Catastrophic insurance plans are for policyholders who do not see doctors regularly but instead want to be covered in case of emergencies. The benefit of this plan is that it provides for urgent care and hospitals. The downside is that a chronic ailment that requires regular doctor visits won't be covered.

Supplemental health insurance plans are a secondary insurance in addition to your primary insurance. They are meant to cover dental and vision expenses. The benefit for these plans is that they usually cover special services like orthodontic braces and mouth appliances as well as contact lenses and extra eyeglasses. This is extremely important for people who know that these type of extra expenses are coming. The benefits of supplemental health insurance are that they help cover costs that primary medical insurance plans don't cover. The downside is that they are an additional expense to the first insurance.
General liability insurance: This covers attorney fees, court costs, settlements, etc. It is useful for health care professionals, pharmacists, veterinarians, architects and funeral directors. The benefit is that it is broad enough to cover several different kinds of workers. The cost is that it may not be specific enough for doctors.

Legal malpractice: This is specifically designed for attorneys who face liability for financial loss of clients and others involved in the attorney's work.
he purpose in the will is the first line of the document. It states: "This is my last will and testament." If the document does not state this or something similar in language, it is not considered a will.

Consideration in a will refers to the person's wishes. For example a man wants his home to be given to his wife, his money to be split between his wife, son and sister, and for his car to go to his son. Consideration takes into account the many people who will be affected by the will.

Medical malpractice: This is for physicians who face liability for illness, injury and death while practicing medicine. This is only beneficial for medical professionals.
Executors are those people responsible for carrying out the directives within a will. Who can be an executor? Anyone, it is whoever the maker of the will named to carry out the directives. The executors job is to:

find the deceased person's assets
manage the assets until they are distributed to the inheritors
Codicils are written amendments to the will. It is the only way to make changes to how the will divides up the assets. In order for the codicil to be legally binding, it must be:

dated
signed by the person who made the original will
witnessed by another person who also signs the document
reference the original will