INSURANCE 2 MORE ABOUT INSURANCE Personal Finance

WHAT DO WE NEED INSURANCE FOR?

WHAT TYPE OF INSURANCE SHOULD I PURCHASE FIRST? Health insurance (along with disability and auto/property) should be the first insurance you purchase. Health insurance (along with disability and auto/property) should be the first insurance you purchase.

INSURANCE Generally, the higher the deductible, the lower the premium.

WHAT IS A PREMIUM? The premium is the cost of the policy and is paid monthly/every six months/yearly if purchased on your own. The premium cost is deducted from your paycheck if the employer provides the insurance.

WHAT IS A DEDUCTIBLE? The deductible is the amount the policy holder pays when a claim is “settled”. It is the amount that has to be paid out of pocket before the insurance pays their part.

LIFE INSURANCE

TERM LIFE INSURANCE How it Works Term insurance is the most straightforward form of protection. You generally pay premiums on a monthly or annual basis and your family is protected for that "term". This is the only type of life insurance which does NOT have a cash value. This type of insurance only pays a death benefit.

TERM LIFE INSURANCE Typical Uses: Help provide for a family's loss of income Help provide for a family's loss of income Cover short- term debts and needs Cover short- term debts and needs Provide additional insurance protection during the child raising years Provide additional insurance protection during the child raising years Provide longer term protection to help your family pay off a mortgage, or to help pay for a college education Provide longer term protection to help your family pay off a mortgage, or to help pay for a college education

WHOLE LIFE INSURANCE How it Works Whole Life Insurance offers level premiums and life insurance protection for as long as you live, provided that premiums are paid as required to keep the policy in force. Whole Life Insurance offers level premiums and life insurance protection for as long as you live, provided that premiums are paid as required to keep the policy in force. Whole Life policies also provide for the accumulation of cash value on a tax-deferred basis which can be used when you need it, to help with life’s opportunities. Whole Life policies also provide for the accumulation of cash value on a tax-deferred basis which can be used when you need it, to help with life’s opportunities. Policy loans do accrue interest, and any outstanding policy loans and interest will reduce the death benefit and cash value. Policy loans do accrue interest, and any outstanding policy loans and interest will reduce the death benefit and cash value.

WHOLE LIFE INSURANCE TYPICAL USES: Provides for a family’s loss of income, mortgage costs, and educational needs Provides for a family’s loss of income, mortgage costs, and educational needs Access to cash value for life’s opportunities Access to cash value for life’s opportunities Leaving a legacy for the next generation Leaving a legacy for the next generation

WHOLE LIFE INSURANCE CASH VALUE If the insurance has a cash value, the policy can be surrendered for a calculated amount of money which includes the premiums paid as well as the interest on that money. If the insurance has a cash value, the policy can be surrendered for a calculated amount of money which includes the premiums paid as well as the interest on that money. The cash value is a dollar amount that increases over the years. If the policyholder dies, the beneficiary receives the death benefit, but not the cash value. The cash value is a dollar amount that increases over the years. If the policyholder dies, the beneficiary receives the death benefit, but not the cash value.

WHOLE LIFE INSURANCE DEATH BENEFIT (FACE VALUE) The amount of coverage of a life insurance policy. This is the amount the beneficiary will receive in the case of the death of the policy owner.

are/what-the-heck-are-managed- health-care-plans

WHAT IS A MANAGED HEALTH CARE PLAN? A managed health care plan means you usually must first meet with your primary health care physician before seeing a specialist. The primary health care physician “manages” your health care. A co-pay may be required when seeing your primary care physician.

AUTO INSURANCE POLICIES If you decide to change auto insurance policies, make sure the new policy starts at 12:01 AM following the termination of the old policy (policies expire at midnight). A lapse in policy may leave you responsible if you have an accident.

UNINSURED OR NO FAULT Uninsured or “no fault” auto protection covers the cost of injuries to the policyholder and family members. Uninsured or “no fault” motorist’s protection also covers car repairs, financial losses due to injuries, car damage caused by a hit- and-run driver, or the cost of other people’s injuries by a driver who has insufficient coverage.

DISABILITY INSURANCE Disability insurance protects against the financial effects of not being able to work.

WHAT IS LIABILITY INSURANCE? Liability insurance covers you in case someone is hurt on your property or in your business.

WHAT IS A FLOATER?

FLOATERS A personal property “floater” may be needed if you have expensive jewelry or other items. A personal property “floater” may be needed if you have expensive jewelry or other items. It covers the cost of replacement should the item get stolen or damaged. It covers the cost of replacement should the item get stolen or damaged.