Questions to think about. Key Terms Insurance Basics Questions to think about. Copayment HMO PPO COBRA Term Life Insurance Permanent Life Insurance Will health insurance cover all of your health care expenses? Which life insurance do I purchase?

Questions to ask yourself before you purchase health insurance. Coverage for yourself or your family? Starting a family? Chronic illness or disability? Is your doctor in the health plan? How important is convenience in access to health care for you? How much can you afford for premiums?

$4,800 x 0.20(your portion of the 80/20 coverage) = $960 Math & Money Solution: $5,000 - $200(deductible) = $4,800 $4,800 x 0.20(your portion of the 80/20 coverage) = $960 $200 + $960 = $1,160 You Pay You have a $200 deductible and 80/20 coverage. You just had an illness that costs $5,000 in medical expenses. This was your only claim this year. How much of this cost will you have to pay? How much will the insurance company pay? Solution: $4,800 x 0.80(insurance companies portion of the 80/20 coverage) = $3,840 Insurance Company Pays

Comparison of Common Life Insurance Options Term Life Variable Whole-Life Premiums Start low; increase Stay Level Coverage Generally renewable to age 70-75 Permanent Ability to Borrow No Yes Death Benefit Fixed Varies with investment returns LifeSmart – pg 8 Please use new link for insurance quotes off website “helpful resources.”