* 07/16/96 Insurance *

Risk Risk is the uncertainty about a situation’s outcome This can be an unpredictable event which leads to loss or damage

Insurance Terminology Insurance is an arrangement between an individual (consumer) and an insurer (insurance company) to protect the individual against risk A policy is a contract between the individual and the insurer specifying the terms of the insurance arrangements

Insurance Terminology A policyholder is a consumer who purchases the policy A premium is a fee paid to the insurer to be covered under specified terms A deductible is the amount paid out of pocket by the policy holder for the initial portion of a loss before the insurance coverage begins

Types of Insurance Types of insurance can include: Automobile Health Life Disability Homeowners/Renters

Automobile Insurance Automobile Insurance is an arrangement between an individual (consumer) and insurer (insurance company) to protect the individual against risk from automobile accidents

Automobile Insurance Types There are four types of coverage for Automobile Insurance: Liability insurance Medical payment insurance Uninsured or underinsured motorists insurance Physical damage insurance Collision Comprehensive

Liability Insurance Liability Insurance covers the insured if injuries or damages are caused to other people or their property It is the minimum amount of insurance required by law for automobiles

Medical Payment insurance Medical Payment Insurance covers injuries sustained by the policyholder of the insured vehicle or any passenger regardless of fault It also covers policyholder and/or family members injured as passengers in another’s vehicle or if injured as a pedestrian

Uninsured motorists insurance Uninsured or Underinsured Motorists Insurance covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance

Physical damage insurance Physical Damage Insurance covers damages caused to the vehicle Collision – covers a collision with another object, car, or from a rollover Comprehensive – covers all physical damage losses except collision and other specified losses

* http://www.forbes.com/sites/theapothecary/2013/12/30/how-many-healthy-people-are-signing-up-for-obamacare-the-white-house-wont-say/ 07/16/96 Health Insurance ObamaCare/Affordable Care Act—click link above In 2012 there were approximately 48 million Americans or 15.4 percent of the population without health insurance (http://www.census.gov/newsroom/releases/archives/income_wealth/cb13-165.html) Health insurance provides protection against financial losses resulting from injury, illness, and disability Health insurance types include hospitalization, surgery, prescriptions, doctor’s visits, dental, vision, long-term care, or other major expenditures Health insurance may be purchased by the individual or through their employer Children can be included on their parents’ health insurance until the age of 26 Updated statistic and source *

Life Insurance Life insurance is a contract between an insurer and policyholder specifying a sum to be paid to a beneficiary upon the insured’s death The contract is a policy which states the amount to be paid to the beneficiary upon the insured person’s death

Life Insurance A beneficiary is the recipient of any policy proceeds if the insured person dies A dependent is a person who relies on someone else financially

Automobile—Liability! What Covers This Risk? You hit and injure a pedestrian in a crosswalk Automobile—Liability!

What Covers This Risk? After losing her husband to a heart attack, the wife is left alone to care for 2 children Life!

What Covers This Risk? You need a cast after breaking an ankle while roller-blading Health!

Disability Insurance Disability Insurance replaces a portion of one’s income if they become unable to work due to illness or injury

Homeowner’s/Renter’s Insurance Homeowner’s Insurance combines property and liability insurance into one policy to protect a home from damage costs due to perils. A peril is an event which can cause a financial loss like fire, falling trees, lightning and others

Property Insurance Property Insurance protects the insured from financial losses due to destruction or damage to property or possessions Liability Insurance protects the insured party from being held liable for other’s financial losses Homeowner’s insurance should cover the replacement cost which will pay to rebuild the home if it is completely destroyed

Renter’s Insurance Renter’s Insurance protects the insured from loss of the contents of the dwelling rather than the dwelling itself Renter’s insurance may be provided by a parent or guardian while an individual is still a full time student or under the age of 18 However, each policy is different and should be inspected by the policy holder

What Covers This Risk? Your apartment is broken into and your computer is stolen Renters!

What Covers This Risk? You are injured in an automobile accident and are unable to work for 2 months Disability!

What Covers This Risk? Your garage was destroyed by a fire which started by a lightning bolt hitting your home Homeowners—Property!

Homeowners—Property or Comprehensive Automobile! What Covers This Risk? Your car inside the garage destroyed by a fire which started by a lightning bolt hitting your home Homeowners—Property or Comprehensive Automobile!

What Covers This Risk? Sick at home from food poisoning after eating a carnival corndog Nothing!

Automobile—Collision! What Covers This Risk? You have brake failure. You hit a telephone pole and cause damage to the front of the car Automobile—Collision!

What Covers This Risk? You get pulled over and receive a speeding ticket on your way to the mall Nothing!

What Covers This Risk? A daughter, who is financially responsible for her mother’s nursing home bills, dies from an undetected heart defect Life!

What Covers This Risk? A doctor diagnoses a child with tonsillitis during a visit to a clinic Health!

Automobile—Uninsured/Underinsured or What Covers This Risk? You are hit by a car while crossing the street and that person has no insurance. Automobile—Uninsured/Underinsured or Medical Payments!