1. Life In…United States 3.18.3.G1 © Family Economics & Financial Education - Revised May 2009 - Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 3.18.4.G2 Insurance  Insurance, on average, is 7% of a households net income  Calculate what 7% of your households net income is

2. Life In…United States 3.18.3.G1 © Family Economics & Financial Education - Revised May 2009 - Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 3.18.4.G2 Insurance HeathDisabilityLife What is it? Provides financial protection for injury and illness Replaces a portion of income if unable to work because of injury or illness Provides a specific sum of money to beneficiaries if an individual dies When is it needed? Always!Almost always If others depend upon an individual for financial support (families with children) May be provided by the employer

3. Life In…United States 3.18.3.G1 © Family Economics & Financial Education - Revised May 2009 - Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 3.18.4.G2 Health Insurance 1.Determine if health insurance is provided by employer –If provided, analyze what family members are protected 2.If not provided, determine if it will be purchased separately 3.If so: –Identify the age of the oldest individual being covered –Review the appropriate plan 1 individual = single 2 individuals = single + dependent More than 2 = family plan –Select from the row of the appropriate age and column of the appropriate plan

4. Life In…United States 3.18.3.G1 © Family Economics & Financial Education - Revised May 2009 - Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 3.18.4.G2 Disability Insurance 1.Determine if disability insurance is provided by employer 2.If not provided, determine if it will be purchased separately 3.If so: –Monthly net income x.02 = monthly cost

5. Life In…United States 3.18.3.G1 © Family Economics & Financial Education - Revised May 2009 - Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 3.18.4.G2 Life Insurance 1.Determine if life insurance is provided by employer 2.If not provided, determine if it will be purchased separately  If so: –Identify who will be insured –Must be purchased for each individual being insured separately  Select the amount of coverage –$100,000 –$250,000 –$350,000  Determine if your scenario uses tobacco or not  Determine the monthly cost

6. Life In…United States 3.18.3.G1 © Family Economics & Financial Education - Revised May 2009 - Life in...United States Simulation - Bancroft-Notebook Cover and Profile Page 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 3.18.4.G2 Insurance  Guided Spending Plan Question #8 –Determine if insurance is provided by employer or will be purchased –If necessary, select insurance options –Record all insurance expenses  Calculate your insurance sub-total –Is it approximately 7% of net income?