Outline
The level of coverage they need- Whether you are getting a business or individual insurance cover for your car or health insurance for your family, the key question that should be answered is the different types of coverage should be covered in the policy.
The cost of premiums- In deciding which insurance cover to take, one should consider the cost, which accrues on monthly premiums.
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The level of deductible - The main thing that is considered by many people in insurance covers is the size of the deductible.
What should the Parkers consider when deciding what insurance coverage they need?
Insurance cover depends on several factors. These factors range varies from one individual to another and the benefits associated with the insurance cover chosen. The following as the factors that Parker should consider when deciding on the insurance cover they need.
The level of coverage they need. Whether you are getting a business or individual insurance cover for your car or health insurance for your family, the key question that should be answered is the different types of coverage should be covered in the policy. In this case, the insurance cover should be able to cover all the areas of concern rather than covering part of it which may necessitate insurance cover to cover the rest of the areas that were not covered in the previous insurance coverage ( Baicker, Congdon & Mullainathan, 2012) . For instance, for the case of the car insurance, some elements must be taken into consideration and added into the insurance policy. This includes the third party property insurance, which can give you a better hand when you cause damage to someone else.
The cost of premiums- In deciding which insurance cover to take, one should consider the cost which accrues on monthly premiums. In this case, Parkers should consider the insurance cover that is cost-effective which does not strain the family resources ( Schoenmaker & Gros, 2012) . In subscribing to the affordable insurance cover, the family will be able to maintain a good relationship with the insurance organization hence can be able to obtain assistance in case of accident or misfortune, which is under any of the insurance covers.
The level of deductible- The main thing that is considered by many people in insurance covers is the size of the deductible. This is applicable to both the commercial and insurance cars. Nonetheless, this s aspect of insurance applies to the health policies. In this case, deductibles are the amount you will have to incur to make a claim. In essence, the levels of deductibles vary for some reasons such as the demographic data, age as well as the history of the claims and violations will determine the amount you owe.
Do they have sufficient insurance coverage? If not, what type of insurance coverage do you recommend for them?
Based on the information provided concerning the properties owned and insurance policies held by the parkers, they do not have sufficient insurance. This is because the Bob has a $250,000 term life insurance policy only which does not cover other properties and business owned by the family. Therefore, the parkers need other insurance coverage such as the general liability insurance which protects the damages in case a product or service causes a bodily injury to a third party. This will mainly be applied to the garage door installation company.
Another insurance coverage that I recommend for the parkers is property insurance. This is because they own businesses and buildings, which hold some equipment such as computers, inventories and other office equipments ( Michel‐Kerjan & Kousky, 2010) . Therefore, taking this kind of insurance will help them to remain on safer side in case of vandalism or fire outbreak.
Commercial auto insurance is yet another insurance cover that I can recommend for the parkers. This is because they have personal and business vehicles which should be covered to save them in case of accident or damage to a third party property. Additionally, if the company does not have their own vehicles and the company employees drive their own vehicles, the parkers can take non-owned auto liability to protect the company in case the worker does not have insurance or it is inadequate. Finally, life insurance is ideal for the parkers. This will help protect them against death ( Blumenthal & Collins, 2014) . This will benefit the children in case the parents die and the needs of the children have to be met.
How can they keep their insurance costs down?
There are several ways to keep the insurance cost at low levels. They include making a comparison from different insurance companies to determine which company offers good policies at low cost. This will help avoid the companies that charge more and do not have cover most of the aspects. Additionally, the Parkers should reduce coverage on the older cars since they can easily get damaged. Additionally, purchasing auto and homeowner’s coverage from the same insurance company will help lower the cost of insurance. This is because the logistical charges are paid once hence making it cheaper when specific items are paid once. Buying higher deductibles also plays a significant role in lowering the insurance cost. Nonetheless, maintaining a good credit record with the in banking institutions will make the insurance companies consider reasonable charges since the insurance coverage does not involve a lot of risks which is expensive.
References
Baicker, K., Congdon, W. J., & Mullainathan, S. (2012). Health Insurance Coverage and Take‐Up: Lessons from Behavioral Economics. The Milbank Quarterly , 90 (1), 107-134.
Blumenthal, D., & Collins, S. R. (2014). Health care coverage under the Affordable Care Act—a progress report.
DeNavas-Walt, C. (2010). Income, poverty, and health insurance coverage in the United States (2005) . Diane Publishing.
Michel‐Kerjan, E. O., & Kousky, C. (2010). Come rain or shine: Evidence on flood insurance purchases in Florida. Journal of Risk and Insurance , 77 (2), 369-397.
Schoenmaker, D., & Gros, D. (2012). A European Deposit Insurance and Resolution Fund-An Update.
