INSURANCE!

INSURANCE BASICS

• Life is full of RISK!• You can’t eliminate risk, but

you can manage it!• Insurance•Manages your risk of financial loss from illness, injury, or damage.

INSURANCE

• Premium•Regular payments to an insurance company.•This offers protection for you in the event that something happens to you.

• Policy•A legal contract you sign when you buy insurance.

INSURANCE

• Claim•A formal request for payment from the insurance company if loss occurs.

•When you make a claim, it is important to note that your premium may go up due to the claim.

Click icon to add pictureHOME IN

SURANCE

COVERAGE

HOME OWNERS INSURANCE

• Protects you against loss from:•Fire•Theft•Other hazards

HOME OWNERS INSURANCE

• Personal Property•Covers damage to or loss of your house and its contents.•Covers not only the physical structure but also any unattached structures on your property such as a garage or storage shed.• Interior•Covers furniture, appliances, curtains, and clothes.

LIABILITY COVERAGE

• Covers bodily injury or damage you cause to others while on your property or in other locations.

• Example:• You have been working on your roof. You leave the ladder up against your house as you go to lunch. Your neighbor’s child climbs up the ladder and falls off the roof and hurts themself. Your homeowner’s liability coverage will pay the child’s medical expenses and your legal expenses if the child’s parent sues.

RENTERS INSURANCE

• Provides same coverage as homeowner’s policy except it doesn't cover the structure of the property itself or accidents that happen outside of your rented apartment or house.

• A typical policy costs $300-500 per year.

COST OF HOMEOWNERS INSURANCE

• Premium is determined by:•Location• Some neighborhoods have more crimes than others

•Age of the house•Newer homes are less likely to burn down than older homes

•Distance to fire station or hydrant • The closer you are to a fire station, the quicker the fire can be put out.

REDUCE PREMIUM

• Upgrade your home•Old pipes can freeze and break•Old wiring can cause a fire

• Install smoke detectors• Install more security• Special discounts•Given to non-smokers•Members who stay at home and don’t work

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HEALTH IN

SURANCE

HEALTH INSURANCE

• Provides money to pay for health care, illness, injury, or, in some cases, preventive care.

• Basic coverage includes:•Hospitalization•Surgery•Outpatient services/Doctor visits•Major Medical (serious illness/accident)

ADDITIONAL COVERAGE

• Medications• Prescriptions can be very expensive.• Generic Drugs- Medications that have the same

chemical composition as their name brand counterparts but are less expensive.• Some policies exclude certain medications from

coverage such as medication for: depression, contraceptives, diet drugs, and experimental drugs.

• Dental Care

• Vision Care

PROVIDED BY...

• Health insurance can be provided by:•Employer•Individual•Government

LIFE INSURANCE

• Provides payment to beneficiaries•Someone who receives money if an insured person dies.•This is important for someone who has dependents.

IDENTIFY THE TYPE OF INSURANCE THAT WOULD BEST COVER EACH EVENT1.You invite people to your

apartment and a guest trips over a pair of shoes and breaks a finger.

2. You get food poisoning and visit the ER.

3. You hit a tree with your car and you need it repaired.

IDENTIFY THE TYPE OF INSURANCE THAT WOULD BEST COVER EACH EVENT4. Your house is destroyed by a tornado and you need to rebuild it.

5. You have a water leak in your kitchen and need to replace the flooring and cabinets.

6. An unexpected death of a family member results in funeral expenses.