1. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics SECTION OPENER / CLOSER INSERT BOOK COVER ART Section 22.1 Insurance Basics

2. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Insurance Policy When you purchase insurance, you pay an agreed-upon amount of money to an insurance company. The company agrees to pay for losses caused by such events as automobile accidents, theft, or injuries.

3. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Insurance Policy An insurance policy is a legal contract between a person buying insurance and an insurance company. The person buying insurance is the policyholder.

4. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Insurance Policy An insurance policy explains: who is covered, types of losses for which the company will pay, amounts the company will pay, and the cost of the insurance.

5. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Insurance Coverage An insurance policy describes a policyholder’s coverage. Insurance coverage refers to losses that an insurance company agrees to cover. Exclusions are losses that are not covered.

6. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Benefit and Beneficiary An insurance benefit is the money paid by an insurance company for a loss. The beneficiary is the person, usually the policyholder, to whom the benefit is paid.

7. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics PremiumsPremiums A premium is the amount of money a policyholder pays for insurance. You can usually pay premiums in installments.

8. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics DeductiblesDeductibles A deductible is the portion of the cost of a loss that an insurance policyholder pays before the insurance company pays the remaining cost. The higher the deductible, the lower the cost of your premiums.

9. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Kinds of Insurance Kinds of insurance include: automobile insurance, health insurance, dental insurance, and homeowner’s insurance.

10. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Government Insurance Programs Government insurance programs include: unemployment insurance, workers’ compensation, Medicare, and Medicaid.

11. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Holding Down Insurance Costs Some tips for controlling insurance costs are: Know what type of insurance you want. Call several insurance agencies in your area to ask about coverage and costs. continued

12. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Holding Down Insurance Costs Ask about different premium costs with different deductibles. Don’t buy more coverage that you need or less coverage than you need.

13. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Holding Down Insurance Costs Insurance companies are less willing to insure you if they believe you are more likely to use the insurance.

14. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics Holding Down Insurance Costs Young drivers and people with poor driving records often pay high premiums. People with poor health habits have difficulty finding affordable life insurance.

15. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.1 Insurance Basics SECTION OPENER / CLOSER INSERT BOOK COVER ART End of Section 22.1 Insurance Basics