1. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 1.10.1.G1 Insurance Take Charge of Your Finances 1.10.1.G1

2. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 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 1.10.1.G1 Statistics Prevalence of obesity – 1st Cancer deaths – 3rd Cardiovascular deaths – 4th Preventable hospitalizations – 6th Air pollution – 8th

3. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 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 1.10.1.G1 Statistics Poor physical health days – 8th Immunization coverage – 10th Lack of health insurance – 37th Prenatal care – 40th Geographic disparity – 43rd

4. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 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 1.10.1.G1 Risk, Responsibility, Reality This video clip provides an overview of insurance policies Risk, Responsibility, Reality Video Clip http://www.griffithfoundation.org/auto-insurance/auto- insurance-30-minutes/ http://www.griffithfoundation.org/auto-insurance/auto- insurance-30-minutes/

5. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 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 1.10.1.G1 Risk Risk is the uncertainty about a situation’s outcome This can be an unpredictable event which leads to loss or damage

6. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 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 1.10.1.G1 Insurance Terminology Insurance is an arrangement between an individual (consumer) and an insurer (insurance company) to protect the individual against risk A policy is a contract between the individual and the insurer specifying the terms of the insurance arrangements

7. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 7 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 1.10.1.G1 Insurance Terminology A policyholder is a consumer who purchases the policy A premium is a fee paid to the insurer to be covered under specified terms A deductible is the amount paid out of pocket by the policy holder for the initial portion of a loss before the insurance coverage begins

8. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 8 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 1.10.1.G1 Types of Insurance Types of insurance can include: Automobile Health Life Disability Homeowners/Renters

9. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 9 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 1.10.1.G1 What Covers This Risk? You hit and injure a pedestrian in a crosswalk Automobile!

10. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 10 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 1.10.1.G1 What Covers This Risk? After losing her husband to a heart attack, the wife is left alone to care for 2 children Life!

11. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 11 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 1.10.1.G1 What Covers This Risk? You need a cast after breaking an ankle while roller- blading Health!

12. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 12 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 1.10.1.G1 What Covers This Risk? Your apartment is broken into and your computer is stolen Renters!

13. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 13 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 1.10.1.G1 What Covers This Risk? Your garage was destroyed by a fire which started by a lightning bolt hitting your home Homeowners!

14. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 14 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 1.10.1.G1 What Covers This Risk? Sick at home from food poisoning after eating a carnival corndog Nothing!

15. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 15 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 1.10.1.G1 What Covers This Risk? You have brake failure. You hit a telephone pole and cause damage to the front of the car Automobile!

16. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 16 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 1.10.1.G1 What Covers This Risk? You get pulled over and receive a speeding ticket on your way to the mall Nothing!

17. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 17 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 1.10.1.G1 What Covers This Risk? A daughter, who is financially responsible for her mother’s nursing home bills, dies from an undetected heart defect Life!

18. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 18 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 1.10.1.G1 What Covers This Risk? A doctor diagnoses a child with tonsillitis during a visit to a clinic Health!

19. © Family Economics & Financial Education – Updated January 2009 – Insurance Unit – Types of Insurance – Slide 19 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 1.10.1.G1 Conclusion Review the following terms and concepts: Risk Insurance Policy Policyholder Premium Deductible Types of Insurance