Wednesday, April 5, 2017 Objective: Students will be able to evaluate the costs and benefits of buying insurance. Purpose: You will need insurance to protect your belongings if they are ever damaged.

Insurance Costs Coverage Premium: the cost of obtaining and keeping insurance Deductible: the amount you have to pay for expenses before the insurance company will cover the remaining costs The higher the deductible, the lower the premium Coverage Get several estimates before choosing a policy Read through each policy

Types of Insurance Auto Insurance Required by law in all 50 states and DC Liability: covers costs for damages to property, injuries, and court costs (most basic level of coverage) Collision Insurance: covers the costs for all damages that result from an accident Comprehensive Coverage: pays for damages such as theft, broken glass, and vandalism (also called full coverage)

Types of Insurance Health Insurance Required by Federal law Most insurance plans will allow you to get an annual physical for free If you have a co-pay, you are responsible for a small portion of the total cost of a service covered by your insurance policy Co-pays will be smaller if you go to a provider that is part of your insurance company’s healthcare network

Types of Insurance At age 26, every American must have their own health insurance Dental and Vision coverage are part of their own plans Health insurance is either provided by an employer (group plans) or purchased individually Group plans generally have lower premiums Individual plans allow for more individual flexibility

Types of Insurance Differences in Health Insurance Plans Degree to which you can choose your doctor (in network or out of network) Types of procedures covered Deductible amount Copayment amount There is no such thing as a low premium, low deductible health insurance plan

Types of Insurance Property Insurance Renter’s Insurance Protects belongings against damage and destruction from fire, wind, lightning, and theft Flood Insurance Homeowner’s Insurance Protects belongings in a home and on the property from damage and theft

Earthquake Risk in the United States

Types of Insurance Life Insurance Disability Insurance Prevents a family from financial losses from occurring after a person dies Beneficiaries receive set payments in case of a person’s death Disability Insurance pays benefits to individuals who lose their ability to work due to injury or illness