Insurance Basics Sharing the Risk.

Slides:



Advertisements
Similar presentations
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
Advertisements

G1 © Family Economics & Financial Education – Revised February 2009– Transportation Unit – Automobile Insurance Funded by a grant from Take Charge.
© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc.
Unit 9 – Risk Management Chapter 32, 33, 24, 35, and 36.
© Family Economics & Financial Education – Updated April 2008 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc. to.
Business & Personal Finance
Insurance Investigation. Why do people buy insurance? To protect against financial loss –What if your house catches on fire? –What if a tornado destroys.
Insurance Vehicle Insurance 20-2 Property Insurance
What is Insurance?. An arrangement between an Insurance Company and an individual to protect someone/something. Insurance: Provides Protection from almost.
 I: Insurance: a contract(policy) where one party(insurer) agrees to pay another party (insured) of losses affecting the insured’s interests (the insurable.
Understanding Types of Insurance
RISK MANAGEMENT Insurance. Insurance Terminology Risk Risk: uncertainty, unpredictable events which lead to loss or damage Insurer Insurer: business that.
Lines of Insurance What They Are and Why They Are Important Created in part by The Texas Department of Insurance.
Buying Insurance Information retrieved from Succeeding in the World of Work Chapter 20, page 335.
© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Types of Insurance Essentials – Slide 1 Funded.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 20 SLIDE Vehicle Insurance Property Insurance.
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Insurance.
Auto Insurance. POP QUIZ!!!! GET OUT PENCIL AND PAPER!
Vehicle Insurance Chapter 38. Economic Risks of Owning a Car Risks – Accident Damage to yourself Damage to your vehicle Damage to others Damage to others.
© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc.
© Take Charge Today – August 2013 – Types of Insurance – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer.
Automobile Insurance Managing the Risk G1 © Family Economics & Financial Education – Revised November 2004 – Transportation Unit – Automobile.
Automobile Insurance Managing the Risk G1 © Family Economics & Financial Education – Revised November 2004 – Transportation Unit – Automobile.
Chapter 25 Insuring Against Loss. Nature of Insurance Use insurance to protect themselves from risk due to fire, accident, or other catastrophes. People.
Insurance Terms Business Essentials. Term Insurance An insurance policy that provides coverage for a limited period, the value payable only if a loss.
© Family Economics & Financial Education – Updated May 2012 – Types of Insurance – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton.
Objective: Compare different types of insurance plans. Identify types of insurance plans,( home, car, health, life, ). How insurance works. Evaluate insurance.
Insurance Take Charge of Your Finances G1.
Risk Management and Insurance. What is risk? The chance of loss from some type of disaster.
© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc.
Managing the Risk G1 © Family Economics & Financial Education – Revised February 2009– Transportation Unit – Automobile Insurance – Slide 2 Funded.
Insurance & Risk Management. Can You Believe?  The number of insurance claims for auto accidents involving teens is ____% higher than those for adults.
Introduction to Insurance Source of Lesson Resources: Next Gen Personal Finance.
Slide BASIC POLICY TYPES Describe basic property and casualty policies. Describe basic life, health, and disability policies. GOALS GOALS.
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
Types of Insurance Essentials Economics Review: What is Insurance? Risk is the uncertainty about a situation’s outcome- may be an unpredictable.
© Family Economics & Financial Education – Updated April 2008 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc. to.
© Take Charge Today – August 2013 – Types of Insurance – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer.
Chapter 16 Part III Motor Vehicle Insurance. Financial Responsibility Anyone who owns or drives a vehicle should have protection against personal injury.
© Family Economics & Financial Education – Revised May 2011– Insurance Unit – Types of Insurance– Slide 1 Funded by a grant from Take Charge America, Inc.
Insurance 101 Personal Finance. Learning Goal To be able to define terms relating to insurance.
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
Insurance 101 “Risk Management” Insurance Risk Management Protection against Financial Loss.
Auto Insurance Home Insurance Vocab 1 Vocab 2Auto Insurance Insurance Game
Insurance. Risk Risk is the uncertainty about a situation’s outcome – This can be an unpredictable event which leads to loss or damage.
G1 Types of Insurance Essentials The Essentials to Take Charge of Your Finances.
INSURANCE TYPES AND CHARACTERISTICS. WHAT IS INSURANCE? We have insurance because life is full of different risks. Insurance – an agreement between an.
© Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 1 Funded by a grant from Take Charge America,
Risk, Responsibility, Reality
* Take Charge of Your Finances G1
* 07/16/96 Insurance *.
Risk, Responsibility, Reality
Insurance.
Automobile Insurance Managing the Risk.
“Take Charge of Your Finances” Advanced Level
Introduction Life is full of risks and accidents. People are at risk for getting injured when playing sports, riding in a car, or living in a house. Risk.
Types of Insurance Essentials
GOALS 1.2 BASIC POLICY TYPES
Risk, Responsibility, Reality
Understanding Types of Insurance
Insurance What is Insurance?
* Take Charge of Your Finances G1
20 Insurance 20-1 Vehicle Insurance 20-2 Property Insurance
Automobile Insurance Managing the Risk.
Jeopardy! Begin.
Risk, Responsibility, Reality
Insurance What is Insurance?
Automobile Insurance Managing the Risk.
Friday April 25, 2015 Types of Investments Notes Investment Half-sheet
Automobile Insurance Managing the Risk.
Presentation transcript:

Insurance Basics Sharing the Risk

Vocabulary Risk Is the uncertainty about a situation’s outcome This can be an unpredictable event which leads to loss or damage Insurance A risk management tool that limits financial loss due to illness, injury, or damage. Premium Your payment for insurance. Policy A policy is a contract between the individual and the insurer specifying the terms of the insurance arrangements Claim Your request for an insurance company to pay for damages.

Vocabulary (cont.) Shared Risk No single policyholder must have the burden of the entire loss. Market Value The amount the item is worth now. Replacement Value The cost of replacing the item regardless of the market value. Deductible The amount you pay before the insurance company will pay anything. Policyholder A consumer who purchases the policy

Fact or Myth? Only wealthy people who own property they could lose need insurance. Insurance on your home covers damage caused by any storm or natural disaster. You can’t do much to control the cost of insurance you buy.

TYPES OF INSURANCE Automobile Property (Home) Health Disability Life

Automobile Insurance is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

Automobile Insurance Automobile Insurance is an arrangement between an individual (consumer) and insurer (insurance company) to protect the individual against risk from automobile accidents

Automobile Insurance Types There are four types of coverage for Automobile Insurance: Liability insurance Medical payment insurance Uninsured or underinsured motorists insurance Physical damage insurance Collision Comprehensive

Medical Payment insurance Medical Payment Insurance covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault It also covers family members injured as passengers or if injured as a pedestrian

Liability Insurance Liability Insurance covers the insured if injuries or damages are caused to other people or their property It is the minimum amount of insurance required by law for automobiles

Uninsured motorists insurance Uninsured or Underinsured Motorists Insurance covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance

Physical damage insurance Physical Damage Insurance covers damages caused to the vehicle Collision – covers a collision with another object, car, or from a rollover Comprehensive – covers all physical damage losses except collision and other specified losses

Property Insurance is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner Includes liability insurance for accidents that may happen at the home.

Property Insurance Property Insurance protects the insured from financial losses due to destruction or damage to property or possessions Liability Insurance protects the insured party from being held liable for other’s financial losses Homeowner’s insurance should cover the replacement cost which will pay to rebuild the home if it is completely destroyed

Homeowner’s/Renter’s Insurance Homeowner’s Insurance combines property and liability insurance into one policy to protect a home from damage costs due to perils. A peril is an event which can cause a financial loss like fire, falling trees, lightning and others

Renter’s Insurance Renter’s Insurance protects the insured from loss of the contents of the dwelling rather than the dwelling itself Renter’s insurance may be provided by a parent or guardian while an individual is still a full time student or under the age of 18 However, each policy is different and should be inspected by the policy holder

Health Insurance: is generally used to describe a form of insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. It may be provided through a government-sponsored social insurance program, or from private insurance companies.

Health Insurance In 2005 there were nearly 47 million Americans or 16 percent of the population without health insurance (http://www.nchc.org/facts/coverage.shtml ) Health insurance provides protection against financial losses resulting from injury, illness, and disability Health insurance may cover hospital, surgical, dental, vision, long-term care, prescription, or other major expenditures Health insurance may be purchased by the individual or through their employer

Disability Insurance: is a form of insurance that insures the beneficiary's earned income against the risk that disability will make working (and therefore earning) impossible. In other words, it answers the question, "How would I pay for my living expenses if I became unable to work?"

Disability Insurance Disability Insurance replaces a portion of one’s income if they become unable to work due to illness or injury

Life Insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.

Life Insurance Life insurance is a contract between an insurer and policyholder specifying a sum to be paid to a beneficiary upon the insured’s death The contract is a policy which states the amount to be paid to the beneficiary upon the insured person’s death

Life Insurance A beneficiary is the recipient of any policy proceeds if the insured person dies A dependent is a person who relies on someone else financially

THE END