 Life insurance is a contract specifying a sum to be paid to a beneficiary upon the insured’s death  Beneficiary- the recipient of any policy proceeds if the insured person dies

To protect those who depend on you as a source of income  Pay off home and debt at time of death  Money for children whey they reach specific age  Education for children  Retirement income  Savings

 A term policy is life coverage only (RENT) On the death of the insured it pays the face amount of the policy to the named beneficiary. You can buy term for periods of one year to 30 years. Benefits  Cheap  know exact amount paid out at death  If you do not die w/in those 30 years, you have to renew your life insurance policy

Combination of a term policy with an investment component.  Guaranteed face value will be paid  The policy builds cash value that you can borrow against  Riskier because of investment option  Must stay in for 20 or more years to see benefits  Much higher premium will be paid; Premium pool can be drawn from tax free  Whole life insurance can be used as a means of investment $$ (real-estate, retirement cont.)

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

 Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.  Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.

 based on Age Sex Occupation amount of potential lost income

 If you have paid in to SS, entitled to: Payment if unable to work  Physical or mental condition to prevents work  Condition is expected to last 12 months or more Benefits determined by  Pay  # of years covered by SS

 2013: 13.3% of Americans without health insurance.  2014: 10.4% without health insurance (8.8 million people)  Health insurance provides protection against financial losses resulting from injury, illness, and disability (required by fed. Law)

 Entire group has same coverage Example: Fringe benefits offered by employer  Pay same premium  Pro’s Negotiate better coverage and lower premiums  Con’s If you are in good health pay more for others Maternity?  Insurer can’t cancel on any one person for medical reasons

 High premiums/High deductibles  Require a physical exam

 Co-pays: The amount an insured person is expected to pay for a medical expense at the time of the visit  Co-insurance: the percentage of eligible charges payable by the insured for covered services 80/20- insurance pays 80%, you pay 20%  Out of Pocket Maximum: maximum dollar amount per year of eligible medical charges payable by the member directly to providers Deductibles, co-pays, co-insurance

 Medical- routine visits, x rays, lab test Prescription may be covered- use generic  Hospital- bills for room, food, drugs  Surgical- surgeon’s fees for operation Cosmetic and elective surgeries not covered  Gentlemen: Calf implants are on your dime!

 Gives protection against catastrophic expenses of serious illness or injury  Usually has a specified lifetime maximum  Requires co-insurance 20%

 Costs extra  Can choose whether to enroll  Different coverage for different plans

 Group of doctors and hospitals that work together to provide services at a set fee  Allows you to choose from out-of-network doctors/facilities (cost is higher)  Co-payments  More freedom for subscribers to visit out-of- network facilities  Will cover larger portion of expenses when facility w/in PPO is visited  Example: Regents Blue Cross/ Blue Shield

 Group plan offering prepaid medical care to members  Only covers expenses when patients visit doctor/facility that is part of HMO group  Has own facilities  Must use a doctor on the HMO staff  Routine physicals usually covered  Co-pay required  Example: IHC, Altius

 Consolidated Omnibus Budget Reconciliation Act  Allows people who change jobs opportunity to continue group insurance for limited period of time (18 months) Premiums paid by individual not Purpose- give time to obtain other insurance from new employer or individual policy

 Medicare Health insurance for people 65 and older Are not fully covered until 67 Paid for by employee payroll deductions  Medicaid Health insurance for people with low incomes and limited resources Are limits and exclusions

 You hit and injure a pedestrian in a crosswalk Automobile!

 After losing her husband to a heart attack, the wife is left alone to care for 2 children Life!

 You need a cast after breaking an ankle while roller-blading Health!

 You apartment is broken into and your computer is stolen Renters!

 You are injured in an automobile accident and are unable to work for 2 months Disability!

 Your garage was destroyed by a fire which started by a lightning bolt hitting your home Homeowners!

 A daughter, who is financially responsible for her mother’s nursing home bills, dies from an undetected heart defect Life!

 A doctor diagnoses a child with tonsillitis during a visit to a clinic Health!

 Sick at home from food poisoning after eating a carnival corndog Nothing!

 You get pulled over and receive a speeding ticket on your way to the mall Nothing!