_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ APK: Activation of Prior Knowledge Write at least 3-5 sentences describing a time when… something bad happened to your property and you wish you could have done something to protect it, prevent what happened to it, or brought it back. Question of the Day What is the purpose of insurance and how can this product/service help its customers? [use specific examples from what you learn in your answer]

Insurance The root word of insurance is insure which means to guarantee, make sure or promise. Companies offer financial guarantees to citizens. Citizens make monthly payments called premiums to insurance companies. The premiums from thousands of people are pooled together and when someone suffers a loss of property or life the insured gets paid.

Life insurance People buy life insurance to provide money for their families in case they die. Money can be used for funeral expenses or to support surviving family members. Bills, house payments and education expenses can be paid.

Medical or Health Insurance People purchase health insurance to pay for medical expenses. Operations and surgeries are very financially expensive procedures that can cost thousands and even millions of dollars. Health insurance premiums are very expensive.

Liability insurance Liability is another word for responsibility. The most common type of liability insurance is car insurance. People buy this type of insurance so if they cause damage to other peoples’ property the insurance company will pay not the person who caused the accident.

Comprehensive insurance Comprehensive means complete or total. People buy this type of insurance to cover a large amount of liability in case of damage. An example of this is home owner’s insurance that will cover replacement of the entire house and its contents.

Types of Insurance: Mini-Project Locate the website of one of the following insurance companies: State Farm, Allstate, AIG, Nationwide, Farm Bureau, New York Life or Metropolitan Life. Examine the types of insurance services these companies offer to potential customers. Based on what you find provide an explanation for each of the following types of insurance: Life, Medical/Health, Liability/Comprehensive (Car, boat, house You must include at the very least [Be specific]: [A] What are each of these types of “coverage” used for? [B] How do each of these coverage protect people or property from loss?

Image sources http://www.brita.com.au/__data/assets/image/0010/67618/Promise_logo_smaller.jpg http://www.21cloan.com/img/life_insurance.jpg http://www.catalogs.com/blog/heath-insurance.jpg http://thepropertyinsuranceblog.com/wp-content/uploads/2007/12/post4.JPG