1. Insurance

2. Health Insurance Basic Physician for non-surgical care Surgical for surgeon’s fees Cosmetic not covered Specific procedures are a set price Hospital for room, board, nursing fees, lab work, medications, etc.

3. Major Medical Picks up where basic leaves off Covers large, catastrophic, and unpredictable expenses Deductible – amount you must pay before benefits begin Co-payment – part of expenses you are responsible for. May have split liability such as 80/20 where you pay 20% and insurance pays 80%. There may be limits on what will be paid per illness (e.g. $300,000 for cancer) or in a lifetime ($1 million)

4. Comprehensive Having both basic and major medical coverage

5. Types of Insurance Coverage Indemnity Can choose any doctor or hospital Cost is based on “usual and customary” charges Insurance pays a portion of usual and customary fees Insured pays a portion = coinsurance Usually a % split (80/20 or 90/10) Insured pays anything beyond usual and customary

6. Preferred Provider Organization Similar to indemnity except insurance company negotiates a set fee for each procedure and pays that amount Insured not responsible for anything beyond what has been negotiated May still have coinsurance fees There may also be a co-pay – an amount (in dollars) the insured pays before insurance covers

7. Health Maintenance Organization (HMO) Members pay monthly or yearly fee no matter how much care they require. No deductible, co-insurance, or co-payment Can only use a select group of doctors and hospitals Costs are 10-40% lower than other plans Less flexibility is the trade-off

8. Life Insurance Guarantees payment if a person dies or reaches a certain age Two major types: Term Whole

9. Term Life Insurance Insures you for a certain period of time. If you die in that time period your beneficiaries are paid. Premium varies according to amount of coverage, age and health.

10. Whole Life Insurance Covers for your whole life. Premiums remain constant Creates a cash value which you can borrow against

11. Homeowner’s and Renter’s Insurance Make certain it covers: Damage to the house Personal property (clothes, jewelry, computers) Personal liability (person injured on your property) Loss of use (pay for where you stay while repairs are made)

12. Keep sales slips and photograph belongings Shows proof of ownership and value Insure for replacement value Be sure to consider inflation Premiums may be reduced if you install safeguards Know what your policy doesn’t cover

13. The higher the deductible, the lower the cost Consider the financial stability of the company Renters need to be sure to have personal property and personal liability coverage

14. Auto Insurance Bodily Injury Liability – protects against losses due to death or injury that is the driver’s fault Split-limit policies set maximum paid per injured person and maximum per accident Property Damage Liability – covers damage done to another car, building, fences, etc.

15. Medical Payments – pays for medical expenses Uninsured/Underinsured Motorist Protection – covers you for damages caused by someone without insurance or a hit-and-run Collision – covers damage to your car Comprehensive – covers whatever else could happen to a car (vandalism, stolen, fire, etc.) No fault – some states have this. Your insurance pays for your losses no matter who is at fault

16. What Determines the Premium? Age Gender Where you live Driving record Car you drive How much you drive Driver’s education Air bags Anti-theft devices