Homeowners Insurance

Homeowners Insurance There is renters insurance and homeowners insurance. Both are for protecting your belongings In insurance, your belongings are called “content” (as in “the content of your home”)

What if the house is a total loss? Replacement Cost – the cost to rebuild your home the same as it was Actual Cash Value – how much would your house sell for on the open market (also called Fair Market Value)

Health Insurance Pays your medical bills Your parents policy will cover you until the age of 26 Can also include vision and dental

What you have to pay... Deductible - This is what you pay before the insurance company pays anything Co-Payment – this is what you pay to see the doctor. Usually ranges between $10 and $60 Co-insurance – This is the part of the medical bill you pay after you pay the deductible (90/10, 80/20, 70/30)

For instance...... You have to go to the hospital and incur a $5,000 bill. Your deductible is $1,000 Your co-insurance is 80/20, so that means that of the $4,000 left after the deductible, you owe $800 and the insurance company will pay $3,200

Life Insurance Life insurance provides money to whomever you choose upon your death Life insurance policies must have a Beneficiary (the person you want to receive the money)

Term Life Usually the lowest cost option Pays higher death benefits Can only buy the policy for a limited term (time period), usually 10, 15, 20, or 30 years When the term ends, you must purchase a new policy (usually at a higher rate) Pays off only if you die

Whole Life More expensive and lower death benefit than term Provides coverage for your whole life, premiums never increase Investment with a cash value that increases over time You can borrow against the cash value

Disability Insurance Pays you if you are unable to work due to injury or illness AFLAC