Introduction We purchase insurance to protect the things we value. Insurance is simply a risk management tool It provides average people with an affordable way to manage the risk of bad things happening in the future. In turn, we make small, periodic payments in exchange for the security of knowing we are protected. July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

Objectives • Summarize how insurance works You should be able to do the following after completing this lesson. • Summarize how insurance works • Explain why people need insurance • Discuss who needs to purchase insurance • List the four basic types of insurance most people need • Describe how to file a complaint against an insurance company • Review the two basic ways insurance can be purchased • Summarize the factors affecting the cost of insurance • Define the key insurance terms introduced in this lesson July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

12.1.1 – The Uninsured In this section, you will learn • How many people in the US don’t have health insurance • Why a large number of people don’t have any type of insurance • How much the major types of insurance cost each year You will run the following Interactive Example • No Health Insurance Comparison Example July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

12.1.2 – Basic Types of Insurance In this section, you will learn • What events most people need insurance protection for • Why most people will only need the four basic types of insurance • What the four basic types of insurance are • Why some people find it hard to select a type of insurance July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

12.1.3 – The Department of Insurance In this section, you will learn • Why each state has a Department of Insurance (DOI) • What the DOI in each state does • Why you might need to contact the DOI for assistance • How you would contact the DOI in your state July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

12.1.4 – Purchasing Insurance In this section, you will learn • How the basic types of insurance are sold • To whom insurance policies are sold • What is meant by individual and group policies • How you would go about purchasing insurance • What the advantages of group insurance policy are • Why your insurance needs will change over time • Whether an insurance company must sell you insurance July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

12.1.5 – Cost of Insurance In this section, you will learn • What factors determine the cost of insurance • When the cost of insurance generally increases • What the average cost of the basic types of insurance currently is • Whether the cost of the basic types of insurance will increase or decrease in the future You will run the following Interactive Example • Average Cost of Insurance Example July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

12.1.6 – Who Needs Insurance? In this section, you will learn • What basic types of insurance you will need • If you will need all of the basic types of insurance • How to determine if you need insurance • How to determine when you need insurance • What can happen if you don’t have insurance July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

12.1.7 – Deductibles, Surcharges and Cost In this section, you will learn • Why you must know insurance terminology • What you must pay before the insurance company will begin to pay • What a deductible is and how it works • What a surcharge is and how it can increase the cost • How to relate the cost of insurance to the number of hours you must work to pay for it You will run the following Interactive Example • Average Insurance Cost in Work Hours Example July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved

Discussion Questions What are some types of insurance that most people really don’t need? What are the biggest misconceptions about insurance? July 2011 Copyright © 2011 … REMTECH, inc … All Rights Reserved