Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved.

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. It is important to understand the types of health insurance coverage available, as well as the sources of health insurance when choosing the best plan for your needs. Disability income insurance is important if you become unable to work. Life insurance can relieve the financial burden of those who depend on you. Chapter 23 Health, Disability, and Life Insurance

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 23 Health, Disability, and Life Insurance

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. What Is Health Insurance? Section 1Health Insurance and Financial Planning Chapter 23 Health, Disability, and Life Insurance Group Health Insurance Usually sponsored by employers Covers you and your immediate family Cost is fairly low Coordination of benefits (COB) is for married couples

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. What Is Health Insurance? Section 1Health Insurance and Financial Planning Chapter 23 Health, Disability, and Life Insurance Individual Health Insurance Bought directly from the company of your choice Covers an individual or a family Comparison shopping is essential to find the best rates

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. What Is Health Insurance? Section 1Health Insurance and Financial Planning Chapter 23 Health, Disability, and Life Insurance Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) Continuation of medical insurance after the loss of a job Premiums are paid by the individual

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Coverage Section 1Health Insurance and Financial Planning Chapter 23 Health, Disability, and Life Insurance Basic Health Insurance Coverage Hospital Expense Surgical Expense Physician Expense

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Coverage Section 1Health Insurance and Financial Planning Chapter 23 Health, Disability, and Life Insurance Other Types of Coverage Hospital Indemnity Policies Dental Expense Insurance Vision Care Insurance Unnecessary Policies Long-Term Care Insurance

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Choosing Coverage Section 1Health Insurance and Financial Planning Chapter 23 Health, Disability, and Life Insurance Health Insurance Trade-Offs Reimbursement Versus Indemnity Internal Limits Versus Aggregate Limits Deductibles and Coinsurance Out-of-Pocket Limits Benefits Based on Reasonable and Customary Charges

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Describe the pros and cons of a reimbursement policy versus an indemnity policy. Possible response: A reimbursement policy pays you back for actual expenses so you are not out any money but this might come with a higher premium since costs have the potential of being higher. An indemnity policy pays only a specified amount, regardless of the actual cost, so you could have to pay part of the expense out of pocket, but because the expenses are more determined, it could mean a lower monthly premium. Section 1Health Insurance and Financial Planning Chapter 23 Health, Disability, and Life Insurance

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Private Health Care Plans Section 2Private and Government Plans Chapter 23 Health, Disability, and Life Insurance Types of New Health Care Accounts Health Savings Accounts (HSAs) Flexible Spending Accounts (FSAs)

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Government Health Care Programs Section 2Private and Government Plans Chapter 23 Health, Disability, and Life Insurance Government Consumer Health Information Web Sites Healthfinder MedlinePlus NIH Health Information FDA

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Disability Income Chapter 23 Health, Disability, and Life Insurance Sources of Disability Income Worker’s Compensation Employer Social Security Private Income Insurance Programs Section 3Disability Income

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Disability Income Chapter 23 Health, Disability, and Life Insurance Section 3Disability Income Disability Insurance Trade-Offs Waiting or Elimination Period Duration of Benefits Amount of Benefits Accident and Sickness Coverage Guaranteed Renewability

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. What Is Life Insurance? Chapter 23 Health, Disability, and Life Insurance Section 4Life Insurance Purpose of Life Insurance Pay off home mortgage and debtsProvide retirement income Endowment for childrenAccumulate savings Education for childrenIncome for survivors Uncovered medical expensesEstate planning Charitable donationsEstate and death taxes

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. What Is Life Insurance? Chapter 23 Health, Disability, and Life Insurance Section 4Life Insurance Life Expectancy Table

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Life Insurance Policies Chapter 23 Health, Disability, and Life Insurance Section 4Life Insurance Types of Whole Life Policies Limited Payment Policy Variable Life Policy Adjusted Life Policy Universal Life

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Key Provisions in a Life Insurance Policy Chapter 23 Health, Disability, and Life Insurance Section 4Life Insurance Beneficiary Designation Incontestability Clause Grace Period Suicide Clause Riders Key Provisions Waiver of Premium Disability Benefit Accidental Death Benefit Guaranteed Insurability Option Cost of Living Protection

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Your Tax Dollars Chapter 23 Health, Disability, and Life Insurance The government uses your tax dollars to provide services needed for the health, welfare, and safety of the country. The Federal Insurance Contributions Act (F.I.C.A.) is a tax that funds Social Security.

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 23 Health, Disability, and Life Insurance

Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. End of