1. L IFE A FTER H IGH S CHOOL

2. L EARNING O UTCOMES Section 1: Protecting Your Wealth Section 2: Basic Types of Coverage Section 3: The Importance of Life Insurance Section 4: Insurance to Avoid

3. S ECTION 1

4. R OLE OF I NSURANCE Insurance is a necessary part of a healthy financial plan. Insurance transfers risk of life’s major catastrophes Chances are something major and unexpected is going to happen at some point in your lifetime. Insurance will protect your wealth during those events. Paying insurance premiums in the end really helps you keep more of your money – even though you seem like you are spending it all. Insurance is a Financial Product Buyer should beware! Be knowledgeable about what you are purchasing.

5. R OLE OF I NSURANCE Insurance is an essential financial planning tool. Make sure to get only the coverage you need at the best possible price. Purpose of Insurance is to Transfer Risk. Without proper Insurance: Certain losses can bankrupt you. Conventional wisdom says you should transfer the risk. Insurance puts an umbrella over your life, the money you’ve earned, the hard work you’ve done, and the money you’ve saved/invested.

6. 7 B ASIC T YPES OF C OVERAGE N EEDED : 1. Homeowner’s or Renter’s Insurance 2. Auto Insurance 3. Health Insurance 4. Disability Insurance (when established) 5. Long-Term Care Insurance (over 60 years old) 6. Identity Theft Protection 7. Life Insurance (when others rely on your income)

7. W AYS TO SAVE ON YOUR P REMIUM Raise your deductible – if you have a full emergency fund. Deductible: what you have to pay out of pocket before insurance kicks in any money. Make sure you carry adequate liability. Liability covers property damage and medical bills if you are at fault in a car wreck or someone gets hurt on your property. Consider dropping collision on older cars. Insurance paid to fix your own car.

8. D ISCUSSION Q UESTIONS : 1. Explain the role of insurance in your financial plan. 2. Why is it important to understand that insurance is a financial product? 3. What is the best way to keep down your premiums? 4. What is the purpose of liability insurance? BE SURE TO ANSWER THESE QUESTIONS – IN DETAIL – AND UPLOAD YOUR RESPONSES TO THE NOTES/PODCAST ASSIGNMENT ON CANVAS.