Insurance Why do we need it?.

Slides:

Advertisements

Similar presentations

Test this Thurs 9/27 Competition Competition Money (all aspects) Money (all aspects) Banking Banking Insurance Insurance.

Advertisements

I NSURANCE B ASICS (D ON T R ISK I T ). W HAT IS I NSURANCE ? Risk management tool that limits financial loss due to illness, injury or damage in exchange.

G1 © Family Economics & Financial Education – Revised February 2009– Transportation Unit – Automobile Insurance Funded by a grant from Take Charge.

Vehicle Insurance Financial Responsibility Law requires driver to prove you can pay for damages you cause Premium specified amount of money for coverage.

Auto Insurance. Why It’s Needed Accidents are expensive Car theft is common It’s required by law (in most states)

Personal Finance FIN 235. LEARNING OBJECTIVES A. What is insurance? B. Why do we need insurance? C. What is the risk management process? D. How does insurance.

Protection and Risk Justin Gilly RVA Financial. Debt Management How and When You Should Borrow Credit Consumer Loans – Student Loans – Automobile Loans.

What is Insurance?. An arrangement between an Insurance Company and an individual to protect someone/something. Insurance: Provides Protection from almost.

Managing Your Personal Finance UNIT 2: GETTING YOUR FIRST CAR Topic: CAR INSURANCE.

Auto Insurance Mrs. Bruzan. Liability Insurance -Minimum Limits in Illinois Who and what is covered? The other driver and his car Is it required by the.

Understanding Types of Insurance

Insurance Basics Sharing the Risk.

INSURANCE How it works… Why YOU need it…. ALL ABOUT RISK The chance of financial loss from some type of danger RISK MANAGEMENT AVOID THE RISK – Don’t.

Insurance Your Protection. Risk The chance that something unexpected will occur. Risk Management  Various ways to deal with potential personal or financial.

Insurance Is protection for individuals against possible financial losses Provides protection against many risks such as unexpected property loss, illness.

Financial Literacy Skills Unit 4: Understanding Taxes and Insurance.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 20 SLIDE Vehicle Insurance Property Insurance.

Risk Management Introduction Property & Liability Insurance Health & Life Insurance.

Chapter 11 Insurance. Concept of Insurance $500/year homeowner’s policy will pay $1000 house or $500,000 lawsuit –Relatively small amount compared to.

NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Unit 6 - Insurance: Protecting What You Have.

Managing Your Personal Finance UNIT 3:3 GETTING YOR FIRST CAR Topic: CAR INSURANCE.

Do Now 1.List 5 risks that a typical person faces everyday. 2.List 3 kinds of insurance you have heard of.

THIS IS With Host... Your Credit Tips Credit Rights The 5 Cs Pay, pay, pay Credit Pitfalls Mixed Bag.

Chapter 8 In-Class Notes. Background on Insurance and Managing Risks Types of insurance Property insurance (auto and home insurance) Health insurance.

Chapter 10. Learning Objectives (part 1 of 3) Identify the types of risks for which insurance coverage is appropriate Describe the basic principles of.

An Introduction to Insurance. What is Insurance?  Insurance is a means of guaranteeing you financial protection against various risks.  In exchange.

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.

Insurance Protecting What You Have. ExposureRisk Potential Loss Accident or Illness PropertyOwnership Liability Loss of income from inability to work;

INSURANCE AND RISK MANAGMENT UNIT THREE – CHAPTER 13 – LESSON ONE.

What You Should Know About INSURANCE Created by Matt Wagner.

NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Unit 6 - Insurance: Protecting What You Have.

AUTOMOBILE INSURANCE Chapters 33 autoquiz_DSL.wmv.

VEHICLE INSURANCE. Why It’s Important Most states require you to have some form of vehicle insurance. To get the best value, you need to know the choices.

Is It Worth It? The Cost of Insurance. Insurance Terms Premium Deductible Underwriting.

Chapter 38 Vehicle Insurance.

Today’s Agenda  Targets : State what factors affect insurance rates Apply insurance concepts and terminology to traffic accident cases.

Insurance Take Charge of Your Finances G1.

Auto Insurance Information Mr. Blais Law and You.

INSURANCE Terms and Overview Created in part by The Texas Department of Insurance.

Jessica, Shelby, Brittany & Allie. Bodily Injury Liability Coverage- protects you against financial loss when you are responsible for injuring other people.

Looking at Insurance: Auto and Home Chapter 9. *Risk Factors – Auto Insurance costs Rating Territory Driver Classification Age Gender Marital status Driving.

Personal Lines Policies Personal Auto Policy - ISO 1994 Personal Vehicle Manual - ISO 1994 Homeowners 3 Special Form - ISO 1990.

Agribusiness Library LESSON L060084: VEHICLE INSURANCE.

V EHICLE I NSURANCE Chapter 14, A BOUT THE R ISKS  All states have a financial responsibility law. This means you will be held responsible for.

NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Unit 6 - Insurance: Protecting What You Have.

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.

How Insurance Works Life is full of risks Life is full of risks The purpose of Insurance is to provide financial protection against different kinds of.

What is Insurance?. An arrangement between an Insurance Company and an individual to protect someone/something. Insurance: Provides Protection from almost.

Liability insurance - Financial protection against accidents that cause bodily injury and property damage. comprehensive insurance - Insurance protection.

Types of Insurance Essentials Economics Review: What is Insurance? Risk is the uncertainty about a situation’s outcome- may be an unpredictable.

Insurance and Investments Lesson 5. Insurance Why is it important? –Risk: chance of loss from some type of danger Can be reduced (helmet, seatbelt, locked.

What is a Premium? The amount of money charged by the Insurance companies for active coverage.

Insurance Automobile and Health. What is insurance?  Insurance – Manage your risk of financial loss from illness, injury or damage.  Premium – Regular,

Insurance: Your Protection Financial Literacy Mrs. Dayley.

Unit 8: INSURANCE. 1. According to the Unit 8 reading: Risk is defined as ….. Chance of loss from some type of danger.

Insurance 101 “Risk Management” Insurance Risk Management Protection against Financial Loss.

WHY BUY IT?? VEHICLE INSURANCE. Why It’s Important Most states require you to have some form of vehicle insurance. To get the best value, you need to.

Personal Finance Home and Auto Insurance

Unit 8: INSURANCE.

Intro to Business Chapter 34

Automobile Insurance Managing the Risk.

Managing Your Personal Finance

Understanding Types of Insurance

* Take Charge of Your Finances G1

Insurance Basics (Don’t Risk It)

Insurance The purpose of insurance is to provide financial protection against different kinds of risks we face throughout life.

Presentation transcript:

Insurance Why do we need it?

Types of Insurance Health Home/Renters Life Automobile

Purpose of Insurance The main purpose of any type of insurance is to protect the holder against major financial loss.

How does it work? A contract is signed and both parties agree to uphold their end of the deal. What does each party have to agree to do in-order to uphold the contract? Insurance Company Policy Holder

Insurance Companies are Risk Takers What type of risk is the insurance company taking? Why would a company agree to take such a risk?

$ MONEY!!!!

Underwriting The process of examining, accepting, or rejecting customers, and classifying the ones that are accepted

Underwriting and Auto Insurance Who are you? Age Sex Marital Status Coverage Limits Driving Record Household Driver Info

Underwriting and Auto Insurance cont. Type of Vehicle How do you use it? Credit Where you live at?

Can I lower my rates? Shop around Keep a good driving record Take the highest deductible Drop unnecessary coverage's Discounts

Losing Insurance Why would an insurance company dump you? Failure to pay premium To high of a risk

High Risk If you become to high off a risk how do you obtain insurance? Illinois Automobile Insurance Plan Safe Auto

Illinois Auto Insurance Plan (ILAIP) was created to provide automobile insurance coverage to those eligible risks who are unable to obtain coverage in the voluntary market. This Plan became effective on October 1, 1940.

Safe Auto

Once you obtain insurance Documents you are provided Insurance card Declaration sheet Policy (contract) Exclusions

Check on Learning!!! What is the main purpose of insurance? What is underwriting? What is a premium? How can your credit score affect your insurance premium? What are the two main reasons an insurance company would dump you?

Check on Learning!!! What three items does the insurance company provide you with? What is an exclusion?

Minimum Coverage for Minimum Budget “Keep in mind that the required minimum liability coverage is only the foundation of any auto insurance policy. If you cause a serious accident, minimum coverage may not be adequate.”