Insurance Investigation

Why do people buy insurance? To protect against financial loss –What if your house catches on fire? –What if a tornado destroys your home? –What if you are hurt and unable to work? –What if you are injured in an auto accident and have medical bills? –What if your car is damaged in an accident?

Types of insurance Automobile Homeowners/rental Life Health Disability

Automobile Insurance Different types and what it covers: Liability insurance—will pay for injuries or damages your vehicle causes to others or their vehicles. This is the minimum insurance required by law. Medical payment insurance—this will pay for medical bills for the driver no matter whose fault the accident is, as well as for family members injured as passengers

Automobile insurance, cont. Uninsured or underinsured motorists—pays for injuries or damage caused by someone who has no insurance or not enough of it Collision—pays for damage to your vehicle if it collides with another object or is involved in a one car collision. Comprehensive—pays for any damage to the vehicle that are not collisions, like fires or floods, for example.

Health Insurance Medical expenses can run into very large amounts of money, so health insurance is a very wise investment. Many people have health insurance as a benefit of their job, or they may purchase it through their employer and often add family members at additional costs Health insurance may also be purchased individually from an insurance agent Some children may be covered under their parent’s health insurance until they are 19 or while they are in college

Coverage varies greatly, depending on what the policy says Health insurance may pay for: –Injury, illness, and disability –Routine medical expenses –Emergency situations –Surgical, dental, vision, long-term care, prescription, and other major expenditures

Life Insurance Life Insurance pays a specific amount of money to the beneficiary upon the death of the insured. People purchase life insurance to provide money for family members or dependents when a wage earner dies. Dependent—someone who relies on someone else for financial support Life insurance is needed if someone has a spouse, children, aging or dependent relatives or others who are counting on them for financial support. People also purchase life insurance as a method of being prepared to pay for funeral expenses for the deceased.

Disability Insurance Disability insurance pays a portion of one’s income in the event that they are unable to work, usually somewhere between 60-70% of the typical wages. Severity of injury and length of the disability will influence the benefit amount Some employers offer disability insurance as part of the benefits package, but more typically people purchase liability insurance

Homeowner’s Insurance Homeowner’s insurance helps to replace one’s home in the event it is destroyed or damaged. It also provides liability insurance if someone is injured on the property. The homeowner’s insurance should be enough to replace the home and belongings

Renter’s Insurance Renter’s insurance pays for the replacement of belongings inside a dwelling, but not for damage to the dwelling Renter’s insurance is very important because the landlord’s insurance policy on the dwelling typically does not pay for the replacement of the renter’s possessions.

Spoon Up Some Coverage Game Students will divide into groups of four Each group will have three spoons in the center of the table The object of the game is to get two cards in which the situation and the insurance coverage match A dealer will pass two cards to each player

The first player can draw a card from the deck, then discard one card to the next player The second player may keep the card from player one and pass on one of their original cards OR they may pass on the discard from player one Play continues until someone has a situation and coverage that match, then they grab a spoon

As soon as the first spoon is taken, players quickly take the remaining spoons. The player that does not have a spoon is out. The game continues, removing a spoon every round until only one winner remains. Players who are “out” may help remaining players and they may play as a “team” until only one spoon holder remains