1. © Family Economics & Financial Education – Updated April 2008 – 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 Insurance

2. © Family Economics & Financial Education – Updated April 2008 – 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 Risk, Responsibility, Reality This video clip gives an overview of insurance policies Risk, Responsibility, Reality Video Clip http://www.theiei.org/edu/materials/rrr/classroo m.wmv http://www.theiei.org/edu/materials/rrr/classroo m.wmv

3. © Family Economics & Financial Education – Updated April 2008 – 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 Risk Risk is the uncertainty about a situation’s outcome This can be unpredictable events which lead to loss or damage

4. © Family Economics & Financial Education – Updated April 2008 – 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 Terminology Insurance is an arrangement between an individual (consumer) and an insurer (insurance company) to protect the individual against risk

5. © Family Economics & Financial Education – Updated April 2008 – 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 Terminology A policy is a contract between the individual and the insurer specifying the terms of the insurance arrangements

6. © Family Economics & Financial Education – Updated April 2008 – 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 Terminology A policyholder is a consumer who purchases the policy

7. © Family Economics & Financial Education – Updated April 2008 – 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 Terminology A premium is a fee (or payment) given to the insurance company to be covered (or insured) under the specified terms of the policy.

8. © Family Economics & Financial Education – Updated April 2008 – 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 Terminology A deductible is the amount paid out-of- pocket by the policy holder for the initial portion of a loss. It must be paid before the insurance coverage begins.

9. © Family Economics & Financial Education – Updated April 2008 – 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 Types of Insurance Types of insurance can include: Automobile Health Life Disability Homeowners/Renters Specialty or Unusual Insurance Coverage – malpractice, celebrity attributes, event, etc.

10. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? You hit and injure a pedestrian in a crosswalk Automobile!

11. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? After losing her husband to a heart attack, the wife is left alone to care for 2 children Life!

12. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? A doctor diagnoses a child with tonsillitis during a visit to the doctor’s office Health!

13. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? Your hose on your clothes washer breaks and floods the main floor of your house? Homeowners!

14. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? Your apartment is broken into and your computer is stolen Renters!

15. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? You need a cast after breaking an ankle while roller-blading Health!

16. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? Your garage was destroyed by a fire which started by a lightning bolt hitting your home Homeowners!

17. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? You stay home from work because you got moderately sick from food poisoning after eating a corndog at the carnival. Nothing!

18. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? You have brake failure. You hit a telephone pole and cause damage to the front of the car. Automobile!

19. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? Your car is broken into and your iPod and car speakers are stolen. Homeowners!

20. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? You get pulled over and receive a speeding ticket on your way to the mall. Nothing!

21. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? A daughter, who is financially responsible for her mother’s nursing home bills, dies from an undetected heart defect. Life!

22. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? You are seriously injured in an automobile accident, your car is damaged, and you are unable to work for 3 months Automobile Health Disability!

23. © Family Economics & Financial Education – Updated April 2008 – 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 What Covers This Risk? A really heavy rainstorm causes your home’s basement window wells to fill up with rainwater, the water seeps into your basement and floods the basement, damaging your belongings. Nothing!

24. © Family Economics & Financial Education – Updated April 2008 – 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 Conclusion Review the following terms and concepts: Risk Insurance Policy Policyholder Premium Deductible Types of Insurance