What is a deductible?

The deductible is the amount of a loss that you agree to cover out of your own pocket before the insurance will pay out. Generally lower deductibles result in higher premiums but you want to make sure that you are financially comfortable with the deductible you chose.
Example: You hit a deer on the way home and your comprehensive coverage deductible is $500. Your repair bill is $1500. This means you will pay $500 out of your pocket and the insurance company will cover the other $1000.

What is an annuity?

An annuity is a contract between an individual and a life insurance company. This contract allows you to invest money to grow on a tax-deferred basis. An annuity is a great retirement option because of the tax-deferred capability. Annuities also allow you to receive regular, fixed streams of income when you are in retirement. Money cannot be withdrawn or distributed from the accounts before the age of 59 1/2 or you will receive a penalty. 

Are annuities and securities the same?

Securities are categorized as equity securities or debt securities. 
  • Equity Security: common stock and derivatives contracts, such as options and futures. 
  • Debt Security: include, but are not limited to, corporate and government bonds, bank notes, commercial paper and money market instruments such as certificates of deposit (CDs).
Money in an annuity account is invested in a security, either equity or debt. 

What is the difference between full coverage and liability only?

  • Liability Only: covers only the other party for bodily injury & property damage if you are at fault in an accident. Uninsured and Under-insured coverage is included. These coverages are required by NC in order to have a vehicle registered in this state.
  • Full Coverage: refers to insurance coverage that covers your vehicle if you are at fault in an accident or victim of a hit & run (collision), or damage occurs due to vandalism, weather, and animals running out in front of you (comprehensive). Additionally you can be covered for a rental vehicle due to your vehicle being in an accident, and for towing expenses in the event of a break down or accident.

What is the difference between a deductible, a co-payment, and coinsurance in health insurance?

All three are medical charges you must pay out of your own pocket, even if you have insurance.
  • Deductible: the initial amount you must pay each year for covered health services before your insurer will start to chip in. Plans may have separate individual and family deductibles and/or deductibles for separate services such as hospitalization.
  • Co-payment: a fixed amount you pay toward each medical service, such as $25 for a checkup.
  • Coinsurance: a fixed percentage, rather than a flat amount, that you pay toward each service.