Insurance, retirement issues and veterans’ benefits are subjects that are popular with readers of this column. Here we look back at some common questions and their answers.

Q: I am confused about how title insurance works. I always thought the insurance protects the homeowner, but a friend says it only protects the bank. Who is right?

A: It depends on the type of policy that you’re talking about. Many consumers don’t realize it, but there actually are two types of title-insurance plans.

The first type of title insurance protects the bank’s interest if, say, a long-lost relative or ex-spouse of the seller appears after the deal closes and claims ownership of the home. The lender’s policy would cover the bank’s losses if the claim is upheld in court. Virtually all lenders require a buyer to purchase this type of coverage before a loan can be approved.

The buyer also would have to purchase the second type of policy – known as “owner’s title insurance” – to get the same protection as the bank.

Q: Can you discuss private mortgage insurance?

A: Most banks require borrowers who make a down payment of less than 20 percent to purchase private mortgage insurance, or PMI. The insurance will cover some or all of the lender’s losses if the loan eventually goes into default.

Though the insurance protects the bank, the borrower has to pay the annual premiums. The cost is typically between 0.5 percent and 1 percent of the loan’s outstanding balance each year. On a $150,000 loan, that can be as much as $1,500 annually – or $125 a month.

Q: We want to retire about three years from now and then move to a retirement community that we visited last month. Would it make sense to buy a home in the community now, at today’s prices, and rent the place to tenants until we are ready to move into it ourselves?

A: I don’t think you should buy a retirement home now. Instead, the two of you should wait until both of you have set firm retirement dates.

A lot can happen during three years. Your retirement-housing alternatives might change dramatically if one of you gets sick, dies or simply decides to work even longer.

Dealing with such issues only could be made more difficult if the two of you already had purchased a retirement home that you suddenly didn’t need.

There’s no reason to buy a place now if you don’t plan on moving into it within six months or a year.