1. Insurance – Part II

3. Types of Disabilities Total Total Partial Partial Permanent Permanent Temporary Temporary Social Security Disability Income Total AND Permanent Disabilities 95% of first time applications denied Restrictions on Payment Elimination period Elimination period Probationary period Probationary period Maximum benefits – DOLLAR LIMIT of benefits Maximum benefits – DOLLAR LIMIT of benefits Less Expensive Option – Business Overhead Insurance - Inability to perform employment functions –No employment functions – No employment functions – Some employment functions – Never perform employment functions – Will regain the ability to perform employment functions – time between PURCHASE of policy and payment of an claim time between ONSET OF SICKNESS or illness to payment of claim – time between ONSET OF SICKNESS or illness to payment of claim

5. Remember MULCE M Medical payments to cover yourself U Uninsured or Underinsured motorist L Liability – medical and property damage of the OTHER driver Example: $50,000 in property damage 100 / 300 / 50 $100,000 medical coverage per person $300,000 medical coverage per accident

6. C Collision/Comprehensive – damage to YOUR car E Emergency Road Service Comparison Shopping in Utah http://www.insurance.utah.gov/docs/2008ComparisonTables.pdf Remember MULCE M Medical payments to cover yourself U Uninsured or Underinsured motorist L Liability – medical and property damage of the OTHER driver Example: $50,000 in property damage 100 / 300 / 50 $100,000 medical coverage per person $300,000 medical coverage per accident

7. (d) Specific eligibility requirements. Generally restricted to military officers and their families. (e) Specific eligibility requirements. Generally restricted to enlisted military personnel and ex-dependents of USAA members.

9. Covers Home – damage Personal Property – on the premises Liability – Individuals injured while on your property Seven different levels of homeowners insurance

10. HO–1 – Basic Form – Perils 1-11 - fire, lightning, explosions, hail, riots, vehicles, aircraft, smoke, vandalism, theft malicious mischief, glass breakage HO–2 – Broad Form – Perils 1-18 - everything in HO-1 plus falling objects, weight of ice, snow or sleet, the collapse of buildings, overflow of water or steam, power surges, an the explosion of steam or hot-water systems, frozen plumbing, heating units, air-conditioning systems, and domestic appliances HO–3 – Special Form – All Perils unless specifically excluded - Events traditionally not covered include earthquakes, floods, termites, war and nuclear accidents. Also protects personal assets against events listed in HO-2 HO–4 – Renter Broad Form – Renter’s insurance. Protects personal assets from theft, fire, vandalism and smoke HO–5 – Special Form + – similar to HO-3 plus slightly more coverage of personal assets HO–6 – Condominium – condominium owner’s insurance. Protects personal assets from theft, fire, vandalism and smoke HO–8 – Older Homes – same events as in HO-1 but based on repairs or actual cash value of home, not replacement costs

11. Perils or risks 1.fire, lightning 2.windstorm, hail 3.explosions 4.riots 5.aircraft 6.non home owner vehicles 7.smoke 8.vandalism, malicious mischief 9.theft 10.glass breakage 11.volcanic eruption 12.external falling objects 13.weight of ice, snow, sleet 14.collapse of buildings 15.overflow of water or steam from plumbing, heating or air conditioning 16.bursting, cracking, burning or bulging of a steam or hot water heating system or appliances 17.freezing of plumbing, heating or air conditioning systems and home appliances 18.injury to electrical appliances from short circuits or other currents All other perils or risks unless excepted HO-1 HO-2 for older homes HO-8 HO-3 more personal asset coverage HO-5 Apartment Owners – HO-4 Condominium Owners – HO-6 ‘Named Perils’ coverage ‘All Risks’ coverage numbercoverage ‘cash value’ not ‘replacement’

12. Covers Home – damage Personal Property – on the premises Liability – Individuals injured while on your property Seven different levels of homeowners insurance Exclusions – Common

13. Perils or risks 1.fire, lightning 2.windstorm, hail 3.explosions 4.riots 5.aircraft 6.non home owner vehicles 7.smoke 8.vandalism, malicious mischief 9.theft 10.glass breakage 11.volcanic eruption 12.external falling objects 13.weight of ice, snow, sleet 14.collapse of buildings 15.overflow of water or steam from plumbing, heating or air conditioning 16.bursting, cracking, burning or bulging of a steam or hot water heating system or appliances 17.freezing of plumbing, heating or air conditioning systems and home appliances 18.injury to electrical appliances from short circuits or other currents All other perils or risks unless excepted 10 Common Exclusions 1.floods, earthquakes, landslides 2.mold damage 3.aggressive dog breeds 4.neglect 5.sewage backup 6.luxury items 7.power outages 8.intentional damage by a resident 9.war, terrorism, nuclear attacks 10.trampolines

14. Covers Home – damage Personal Property – on the premises Liability – Individuals injured while on your property Seven different levels of homeowners insurance Exclusions – Common Floods and Earthquakes – purchase separate (relatively expensive) coverage Comparison Shopping http://www.insurance.utah.gov/docs/2008ComparisonTables.pdf http://www.insurance.utah.gov/docs/2008ComparisonTables.pdf http://www.insurance.utah.gov/docs/2008ComparisonTables.pdf

15. HO-3 Coverage

17. Does not cover structure – Landlord has to purchase Does cover personal property Fairly inexpensive – Add on to automobile coverage

19. Double or triple the coverage of a home owner policy or automobile policy Can include other types of coverage: False Arrest False Arrest Libel Libel Slander Slander Relatively inexpensive

21. Insurance for Insurance Companies Life & Health Mutual Guarantee Association Property & Casualty Mutual Guarantee Association Companies licensed in state pay premiums Not state funded – State supervised – No federal or state guarantee (Not FDIC Insured) Back outstanding policies/claims of BANKRUPT insurance companies

23. Retirement Income – Most popular Survivors Benefit – a widower: at least 60 years old at least 60 years old with children under 16 or a disabled child in their care with children under 16 or a disabled child in their care disabled disabled – a child of a deceased worker: – a child of a deceased worker: under the age of 18 under the age of 18 an adult disabled before the age of 22 an adult disabled before the age of 22 high school student under the age of 19 high school student under the age of 19 – a parent of a deceased worker At least 62 years old At least 62 years old Dependent on the deceased worker Dependent on the deceased worker Death Benefit – $255.00 if surviving spouse Disability Income – Remember ‘Total and Permanent’ Social Security Disability Insurance (SSDI) – Based on PRIOR WORK Social Security Disability Insurance (SSDI) – Based on PRIOR WORK Supplemental Security Income (SSI) – Based on FINANCIAL NEED Supplemental Security Income (SSI) – Based on FINANCIAL NEED

24. Social Security Official 2012 Social Security On-line http://www.ssa.gov/OP_Home/handbook/

25. Medicare Part A – Hospital insurance – No charge for covered worker Part A – Hospital insurance – No charge for covered worker Part B – Medical Insurance Part B – Medical Insurance Optional – but automatically covered if you don’t opt out Optional – but automatically covered if you don’t opt out Pays for the doctor or providers Pays for the doctor or providers You pay a premium - $115.40 per month for 2011 You pay a premium - $115.40 per month for 2011 Federal Government subsidizes 70% of the cost Federal Government subsidizes 70% of the cost Part C – (Medicare + Choice / Medicare Advantage) Part C – (Medicare + Choice / Medicare Advantage) Allows you to receive all health care services through a private provider company Allows you to receive all health care services through a private provider company Must have Part A and Part B to enroll in Part C Must have Part A and Part B to enroll in Part C Part D – Prescription drug coverage Part D – Prescription drug coverage Pay a premium Pay a premium Must apply – not automatically covered Must apply – not automatically covered http://www.medicare.gov/publications/pubs/pdf/10050.pdf Official 2012 United States Government Medicare Handbook

26. Medicare http://www.medicare.gov/publications/pubs/pdf/10050.pdf Official 2012 United States Government Medicare Handbook

28. Medigap Policies (Supplemental Policies) Pays where social security will not cover Pays where social security will not cover Ten coverage types lettered ‘A through J’ Ten coverage types lettered ‘A through J’ A wise consumer purchase A wise consumer purchase Most Comprehensive

29. Medigap Policies (Supplemental Policies) http://www.medicare.gov/publications/pubs/pdf/02110.pdf Official 2011 United States Government Medicaid Handbook

31. Potentially the largest financial risk 65% of people will spend some time in LTC Financial hardship if stay is more than one year 6% of women and 3% of men for more than 1 year Consumer guide: U.S. Department of Agriculture and America’s Health Insurance Plans http://publications.usa.gov/USAPubs.php?PubID=5879

33. ‘Poor man’s insurance’ you only qualify if you are very poor Funding – combination of State and Federal funds Administered by each State

34. On-line consumers’ guide http://www.onlinemedicaidguide.com/

36. Insurance – Part II