INSURANCE TYPES AND CHARACTERISTICS. WHAT IS INSURANCE? We have insurance because life is full of different risks. Insurance – an agreement between an.

Slides:



Advertisements
Similar presentations
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
Advertisements

© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc.
Insurance: Protecting What You Have
Unit 9 – Risk Management Chapter 32, 33, 24, 35, and 36.
© Family Economics & Financial Education – Updated April 2008 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc. to.
Business & Personal Finance
Insurance Investigation. Why do people buy insurance? To protect against financial loss –What if your house catches on fire? –What if a tornado destroys.
Insurance Vehicle Insurance 20-2 Property Insurance
 I: Insurance: a contract(policy) where one party(insurer) agrees to pay another party (insured) of losses affecting the insured’s interests (the insurable.
Understanding Types of Insurance
RISK MANAGEMENT Insurance. Insurance Terminology Risk Risk: uncertainty, unpredictable events which lead to loss or damage Insurer Insurer: business that.
Insurance Basics Sharing the Risk.
Lines of Insurance What They Are and Why They Are Important Created in part by The Texas Department of Insurance.
Buying Insurance Information retrieved from Succeeding in the World of Work Chapter 20, page 335.
© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Types of Insurance Essentials – Slide 1 Funded.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 20 SLIDE Vehicle Insurance Property Insurance.
Insurance Are you ready for an accident? Senior Advisory – May 4, 2015.
Insurance Basics Home Automobile Medical & Life. Insurance Basics Learning the Language of Insurance.
INSURANCE Preparing for Life’s Unexpected Events.
© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc.
© Take Charge Today – August 2013 – Types of Insurance – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer.
An Introduction to Insurance. What is Insurance?  Insurance is a means of guaranteeing you financial protection against various risks.  In exchange.
Chapter 25 Insuring Against Loss. Nature of Insurance Use insurance to protect themselves from risk due to fire, accident, or other catastrophes. People.
SSEPF5. Standard SSEPF5 The student will describe how insurance and other risk-management strategies protect against financial loss. SSEPF5 The student.
Insurance Terms Business Essentials. Term Insurance An insurance policy that provides coverage for a limited period, the value payable only if a loss.
© Family Economics & Financial Education – Updated May 2012 – Types of Insurance – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton.
Insurance Take Charge of Your Finances G1.
© Family Economics & Financial Education – Revised May 2011– Insurance Unit – Types of Insurance– Slide Funded by a grant from Take Charge America, Inc.
Risk Management and Insurance. What is risk? The chance of loss from some type of disaster.
TYPES OF INSURANCE. WHY IS IT IMPORTANT TO HAVE INSURANCE? Risk - chance of loss from an event that cannot be entirely controlled Emergency savings -
© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc.
Insurance & Risk Management. Can You Believe?  The number of insurance claims for auto accidents involving teens is ____% higher than those for adults.
Introduction to Insurance Source of Lesson Resources: Next Gen Personal Finance.
Slide BASIC POLICY TYPES Describe basic property and casualty policies. Describe basic life, health, and disability policies. GOALS GOALS.
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
How Insurance Works Life is full of risks Life is full of risks The purpose of Insurance is to provide financial protection against different kinds of.
Types of Insurance Essentials Economics Review: What is Insurance? Risk is the uncertainty about a situation’s outcome- may be an unpredictable.
© Family Economics & Financial Education – Updated April 2008 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc. to.
© Take Charge Today – August 2013 – Types of Insurance – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer.
© Family Economics & Financial Education – Revised May 2011– Insurance Unit – Types of Insurance– Slide 1 Funded by a grant from Take Charge America, Inc.
Insurance 101 Personal Finance. Learning Goal To be able to define terms relating to insurance.
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
Monday, November 30, 2015 Objective: Students will be able to evaluate the costs and benefits of buying insurance. Purpose: You will need insurance to.
Insurance. Risk Risk is the uncertainty about a situation’s outcome – This can be an unpredictable event which leads to loss or damage.
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 1 Funded by a grant from Take Charge America,
Risk, Responsibility, Reality
* Take Charge of Your Finances G1
* 07/16/96 Insurance *.
Risk, Responsibility, Reality
“Take Charge of Your Finances” Advanced Level
Introduction Life is full of risks and accidents. People are at risk for getting injured when playing sports, riding in a car, or living in a house. Risk.
Introduction to Insurance
Types of Insurance Essentials
Risk, Responsibility, Reality
Understanding Types of Insurance
CONSUMER PROTECTIONS.
Insurance What is Insurance?
* Take Charge of Your Finances G1
20 Insurance 20-1 Vehicle Insurance 20-2 Property Insurance
Jeopardy! Begin.
Risk, Responsibility, Reality
Insurance What is Insurance?
Types of Insurance Advanced Level.
Types of Insurance Advanced Level.
“Take Charge of Your Finances” Advanced Level
“Take Charge of Your Finances” Advanced Level
“Take Charge of Your Finances” Advanced Level
Wednesday, April 5, 2017 Objective: Students will be able to evaluate the costs and benefits of buying insurance. Purpose: You will need insurance to protect.
What are some different types of insurance, and why do you need them?
Presentation transcript:

INSURANCE TYPES AND CHARACTERISTICS

WHAT IS INSURANCE? We have insurance because life is full of different risks. Insurance – an agreement between an individual (consumer) and insurer (insurance company) to protect the individual against risks. The purpose of insurance is to help individuals limit financial losses when an unexpected event occurs. Policy – contract between the individual and the insurer specifying the terms of insurance agreements. Premium – amount paid to by the policyholder to be covered under specific terms. Deductible – amount paid out of pocket by the policyholder for the initial portion of a loss before the insurance coverage begins.

TYPES OF INSURANCE Automobile insurance – purpose of this insurance is to protect a consumer when an automobile accident occurs. -Drivers have a 70% chance of getting into an accident in their first three years behind the wheel. -Five types of automobile insurance 1.Liability – covers the consumer if injuries or damage occur to other people or property. Minimum amount of insurance required by law. 2.Medical payment – covers injuries sustained by the driver or passengers. 3.Uninsured or underinsured motorists – covers injury or damage to driver and passengers caused by a driver with insufficient insurance. 4.Physical damage – covers damages caused to the vehicle 5.Automotive repair – covers repairs to the vehicle such as replacement of transmission.

TYPES OF INSURANCE Health insurance – provides protection against financial losses resulting from illness, injury, and disability. Purpose is to provide coverage for emergency or routine healthcare costs. Health insurance may cover hospital, surgical, dental, vision, long-term care, prescription, and other major expenditures. Coverage differs between different policies. May be purchased by individuals or through an employer (61% of healthcare plans are employer based).

TYPES OF INSURANCE Life insurance – contract between consumer and insurer to pay a sum to a beneficiary upon the insured’s death. 70% of American adults have life insurance. Purpose of life insurance is to provide money for family members or dependents when the insured dies. Only necessary for those with dependents.

TYPES OF INSURANCE Disability insurance – prevents the risk of losing income due to a disability. Typically covers between 60 – 70% of ones income if they become unable to work due to illness or injury. It will never pay 100% of the former income because that would not provide any incentive to return to work. Length or severity of disability will determine how much of the income is covered. Most employers will offer disability insurance as a part of employee benefits.

TYPES OF INSURANCE Homeowner’s insurance – combines property and liability insurance into one policy to protect a home from damage costs due to perils. Protects against perils such as fire, falling trees, lightning and others. Property insurance – protects from financial losses due to damage to property or possessions. Liability insurance – protects from being held liable for others financial losses. Renter’s insurance – protects from the loss of belongings in a dwelling rather than the dwelling itself. -Covers perils, provides liability protection, and additional living expenses if the dwelling is uninhabitable. -Necessary if landlord’s insurance policy does not cover renter’s personal belongings.