1. INSURANCE Preparing for Life’s Unexpected Events

2. How It Works You pay an agreed-upon amount of money to an insurance company The company pays for losses caused by accidents, theft, or injuries http://www.youtube.com/watch?v=6HNKqffU3Cc

3. Insurance Terms Insurance Policy – –legal contract between a person buying insurance (a policyholder) and the insurance company Who is covered Types of losses the company will pay Amounts the company will pay The cost of the insurance

4. Insurance Terms Agent~ –The representative of an insurance company who sells policies Insurance Coverage – –losses that an insurance company agrees to cover (this is an actual dollar amount)

5. Deductibles – –the portion of a loss that you pay before the insurance company pays the remainder Insurance Terms Premium – the amount a policyholder pays an insurance company (can pay in installments)

6. Insurance Terms Claim – –an oral or written notice to the insurance company

7. Automobile Insurance http://www.youtube.com/watch?v=2Mjaj_3U El4&feature=related

8. Auto Insurance- Types of Coverage Standard automobile insurance policy = several different kinds of coverage Each type covers a different kind of loss, damage, or injury

9. Males Ages 16 – 25 have the highest car insurance rates!

10. Liability Insurance Damage or injury for which YOU are responsible –Driver and passengers in the other car –Passengers in your car Does not cover your injuries or property damage to your car Shown as 250/500/50 –$250,000 for any one person –$500,000 for all injuries to other people –$50,000 for damage to another person’s property

11. Medical Payments Insurance Covers medical and funeral expenses for you, your family members, and other passengers in your car Does not matter who caused the accident Most cover up to $5,000/person

12. Jamal breaks his arm in a car accident and has to go to the emergency room. His total bill is $740.37. His insurance pays 85% of the bill. How much is Jamal responsible for paying? –$111.06

13. Collision Insurance Covers the cost of repairs to your car if the accident is YOUR fault Covers damage to your car if you’re in an accident caused by a driver who is not insured

14. Comprehensive Insurance Covers your car for reasons other than a collision –Theft, fire, vandalism, wind, hail, floods May exclude some items that are easy to steal (cell phone)

15. Uninsured/Underinsured Coverage Pays medical and damage expenses for you and your passengers caused by a driver without insurance or too little to cover loss. Does not cover the other d river

16. Buying Auto Insurance Shop Around Drive carefully-Safe Driver Discounts Buy only the coverage you need Raise your deductibles Take advantage of insurance discounts

17. Health & Life Insurance

19. Major Medical Coverage It covers: –Hospital and surgical expenses –Doctor visits –Prescription drugs –Medical tests Requires deductible and coinsurance You choose any hospital and physician you prefer

20. Tim recently stayed in the hospital. His health insurance policy pays 70% of his hospital bills after a $700.00 deductible is met. The total of the hospital costs were $21,500.00. What were Tim’s total payments after the deductible? –$6,240.00

21. Health Maintenance Organization (HMO) No deductibles Small co-payment Check-ups and well-baby care are covered Choice of physicians is limited

22. Preferred Provider Organization (PPO) More freedom of choice of doctors Higher premiums Higher co-payments than with an HMO

23. Types of Plans Group Plans –Offered through employers –Keep premium costs down (spreading risk over large number of people) –Have deductible, coinsurance, major medical coverage Individual Plans –Students, self-employed, retirees –Can be expensive!

24. Disability Coverage Pays you a percentage of your salary if you can not work Short-term disability=few months Long-term disability can pay for a lifetime of missed work

25. Types of Life Insurance Term Life Insurance –Protects your dependents if you die –No cash value –Provide coverage for a set number of years –The beneficiary receives the face value of the policy if you die

26. Buying Life Insurance You purchase a policy and pay premiums The company pays a benefit to your beneficiary if you die Should you buy life insurance? How much life insurance do you need? What are some tips on buying life insurance?

27. Home Insurance Renter’s Insurance –Protects your belongings to a set amount Homeowner’s Insurance –Protects your house and it’s contents

28. The Centrino’s have homeowner’s insurance that pays 60% after a $600 deductible is met. After a recent storm, the Centrino’s filed a claim to replace their roof. The roof costs $2,000.00 to replace. What was the insurance company’s payment in this case? –$840.00