health and life insurance ms. k. scruggs choosing health care insurance

Health and Life Insurance

Ms. K. Scruggs

Choosing Health Care Insurance

Objective

Given instruction, the learner will explore the functions and benefits of different types of insurance with 85% accuracy.

Pre – “Qs”

What are the types of health care coverage?

How do you get health insurance if your employer does not offer it?

What is managed care? What does disability insurance

cover?

Types of Health Care Coverage

Dental and Vision Coverage Disability Coverage and Long-Term

Care

Understanding the Cost

Premium Deductible Coinsurance Co-pay Out-of-Pocket

Sources of Health Insurance

Group Insurance Plans Individual Health Insurance Government Program

Group Insurance Plans

Employer-sponsored health plan When many people are covered under the

same policy, premiums are considerably less than they would be for individual policy.

COBRA Consolidated Omnibus Budget Reconciliation

Act It is a federal law that requires employers to

let workers temporarily continue with their health insurance plan after leaving the company, usually for 18 mos.

Individual Health Insurance Policies

Individual Health insurance is offered to people that have jobs that does not offer health insurance and also to entrepreneurs.

Some offers a Short-Term plans which is for those who want coverage for only one to six months

Individual Health Insurance

Pros You can keep your

same coverage even if you change jobs.

Cons It has very high

monthly premiums and large deductibles.

Insurance companies might deny coverage for people with a preexisting conditions

Government Programs

Federal and state governments run health care programs for specific segments for the population. Medicare Medicaid State-Run Heath Care Programs Workers’ Compensation

Manage Care Plan

An insurance plan that focuses on managing the overall cost, use, and quality of the health care system.

HMOs Health

Maintenance Organization

PPOs Preferred Provider

Organization POS Plan

Point-of-Service Plans

Disability Insurance

It replaces a portion of lost income if the policyholder is unable to work due to illness or injuryTypes of Disability Insurance:

Employer Plans Social Security Disability Coverage Workers Compensation Insurance Individual disability insurance

Health Care Insurance Agencies

Blue Cross Blue Shield Nationwide Aetna AARP Health Humana

Post – “Qs”

Name the different types of cost in health care insurance.

What sources of health insurance does the employers offers?

What plan is offered under federal law that covers you when leave the job up to 18 months?

Name several manage care plan?

Assignment

Research a health care insurance plan under a preferred agency that offers health insurance. Look up their plans and choose a plan or coverage and explain why it best fits your lifestyle or future lifestyle. Use Microsoft Word 2007. To research the Agencies use the Google, Bing, or Yahoo search engine.

Life Insurance

Objective

Given instruction, the learner will explore the functions and benefits of different types of insurance with 85% accuracy.

Pre – “Qs”

Why should someone in his or her twenties think about getting a life insurance policy?

What is an annuity?

Why buy Life Insurance?

Pay off debts owed at the time of death

Provide income to spouse and dependents

Provide for the education of children

Make charitable donations

Beneficiary

A person or institution that is named to receive the benefits of an insurance policy.

Types of Life Insurance

Term Life Insurance pays out benefits only if you die during the specific time period when the policy is in force.

Permanent Insurance Whole Life Insurance a permanent

insurance policy that protects the policyholder during his or her whole life, paying a death benefit but also building up an additional cash value.

Other Types of Permanent Life Insurance

Variable Life Insurance You are allowed to determine how to

invest a portion of your premium. If those investments grow, the policy is worth more

Universal Life Insurance These policies allow you to adjust the

amount of coverage to match changes in your life and need.

Sources of Insurance

Group Life Insurance and Individual Life Insurance are

available

How Premiums are Determined

Life Insurance premiums are based on the insurance company’s predictions about people’s life span.

The federal government publishes a life expectancy tables that estimate how long a man or woman of a particular age can be expected to live, on average.

Sample Life Expectancy

Evaluating Life Insurance Policies

Term vs Permanent Look for Renewable Term Policies How much do you need?

LIFE http://fin.emcp.net/life

Bankrate.com http://fin.emcp.net/bankrate

Annunities

An investment that guarantees regular payments to the policyholder, usually beginning at retirement and continuing for a fixed number of years or until death

Post – “Qs”

Name two types of life insurance. Why do we buy life insurance? What is a beneficiary? What is an annuity?

Reference

Personal Finance A Lifetime Responsibility