1. Homeowners Insurance

2. Homeowners Insurance
There is renters insurance and homeowners insurance. Both are for protecting your belongings
In insurance, your belongings are called “content” (as in “the content of your home”)

3. What if the house is a total loss?
Replacement Cost – the cost to rebuild your home the same as it was
Actual Cash Value – how much would your house sell for on the open market (also called Fair Market Value)

4. Health Insurance Pays your medical bills
Your parents policy will cover you until the age of 26
Can also include vision and dental

5. What you have to pay...
Deductible - This is what you pay before the insurance company pays anything
Co-Payment – this is what you pay to see the doctor. Usually ranges between $10 and $60
Co-insurance – This is the part of the medical bill you pay after you pay the deductible (90/10, 80/20, 70/30)

6. For instance......
You have to go to the hospital and incur a $5,000 bill.
Your deductible is $1,000
Your co-insurance is 80/20, so that means that of the $4,000 left after the deductible, you owe $800 and the insurance company will pay $3,200

7. Life Insurance
Life insurance provides money to whomever you choose upon your death
Life insurance policies must have a Beneficiary (the person you want to receive the money)

8. Term Life Usually the lowest cost option Pays higher death benefits
Can only buy the policy for a limited term (time period), usually 10, 15, 20, or 30 years
When the term ends, you must purchase a new policy (usually at a higher rate)
Pays off only if you die

9. Whole Life More expensive and lower death benefit than term
Provides coverage for your whole life, premiums never increase
Investment with a cash value that increases over time
You can borrow against the cash value

10. Disability Insurance
Pays you if you are unable to work due to injury or illness
AFLAC