Health, Disability & Life Insurance

What is Health Insurance?  Protection - against risk of loss due to accident or illness  Premium/fee – money you pay  Insurer or Insurance company- pays your medical bills  Health insurance- refers to medical expenses

Types of Health Insurance A. Basic Health Insurance  Hospital  Surgical  Doctors B. Major Medical  services not covered under basis C. Prescription Drug D. Dental E. Vision

Insurance Terms Benefit- what is covered under the policy Copayment- flat fee $20, $40, $50, $60 Coinsurance- percentage of bill you pay – 20%, 30% Deductible – amount you pay before insurance company pays Out of Pocket Maximum – most you pay for health care services Benefit Limit- the most an insurer will pay Exclusions/Limitations- what’s not covered or limited in coverage

Private Health Insurance Plans For profit insurance companies Provide group and individual insurance coverage Examples of Private Insurance Companies  BlueCross Blue Shield  Aetna  United Health Care  Cigna  Kaiser Permanente

Private Health Insurance Plans I. Traditional Indemnity Plan  Freedom of choice  Most expensive II. Managed Care Plan A. HMO 1. PCP + Referral to Specialist 2. Most restrictive, least expensive B. POS 1. HMO + Indemnity 2. More flexible, moderately priced C. PPO 1. PPO + Indemnity 2. More flexible, most expensive

Government Health Insurance I. Medicare  People over age 65+  Part A- hospital services  Part B- doctor/surgical services  Medi-gap – supplemental policy which pays Medicare balances II. Medicaid  Insurance for low-income people  Paid for with tax dollars III. Tri-Care (Military)  Active and retired military personnel + family

Disability Income Insurance  Protects your income if disabled  Most valuable resource is: Ability to Work = Earning Power! Main Sources of Disability Income:  Worker’s Compensation  Employer  Social Security  Private Insurance Note: never pay s 100%

Life Insurance Life Insurance – Is not for the Dead!  Protects the living and their standard of life  Creates an estate for the living…  Beneficiary- the person named to receive the death benefit Who Needs Life Insurance????????????  Family

3 Types of Life Insurance Term Insurance Temporary insurance Whole Life Insurance Permanent policy Builds up cash value/ serves as an investment Savings and death benefit Group Life Insurance Term life through some type of organization

3 Key Life Insurance Features 1-Naming your Beneficiary 2- Suicide Clause 3-Incontestability Clause- 2 years