Insurance

tell how much you will pay out of your pocket if you have a $500 deductible plan, with an 80/20 co-pay of the next $5000, on each of the following bills. A. $490 B. $900 C. $3000 D. $7500 E. $53,000

A. $490, because you haven't reached your deductible yet. B. $580. $900-$500(deductible)=$400. $400x20%=$80. $500+$80= $580. C. $1,000. D. $1,900 E. $5,000, because it is the maximum you can pay.

If you crashed your car into a house, which kind of insurance would you use: Homeowners Insurance Renters insurance disability insurance auto insurance

Auto Insurance

Insurance to Avoid

Credit Life/disability credit card protection cancer and hospital indemnity insurance accidental death any insurance with cash value, investments or refunds prepaid burial policies mortgage life insurance any kind of duplicate coverage

claim

a demand for payment under an insurance contract for the estimated or actual amount of loss

policy

a formal written contract of insurance

rating bureau

a state supervised organization that classifies and computes rates, gathers data, and measures individual risk hazards.

Automobile Insurance

a type of insurance that covers property damage or legal liabilities in the event of an auto accident, or property damage in the event of theft

Health insurance

a type of insurance that covers the cost of both planned and unexpected health services. family $600-$1000 a month co-insurance. 80/20 90/10 70/30

renters insurance

a type of insurance that replaces personal property if it is damaged due to events such as theft, fire and smoke, and vandalism in a rental residence. also covers legal liabilities of injuries suffered by other individuals in the insured person's residence. does not cover earthquake or flood damage.

disability insurance

a type of insurance that replaces the income of the insured individual of he or she cannot work due to injury or illness.

Homeowners Insurance

a type of insurance that replaces the insured's home and personal property if they are damaged due to events such as theft, fire and smoke, and storms. also covers legal liabilities of injuries suffered by other individuals in the insured person's residence. does not cover earthquake or flood damage. covers your home and goods/assets (replacement value) price depends on what the house is worth and what it will cost to replace it. types of goods are valuable items. good or bad credit.

Whole Life Insurance

a type of life insurance that a pays a benefit no matter when the person dies. more expensive, no end date, can pay back as a retirement fund (savings plan).

Term Life Insurance

a type of life insurance that pays a benefit only when a person dies during the term or time period of the policy. cheaper, with certain end date

Supplimentary insurance

above and beyond

Insurance

an agreement in which an individual pays a company to protect him or her from possible loss or damage. can be a property or financial loss.

Life Insurance

an insurance that pays a sum of money to a beneficiary when the insured individual dies

3 ways to handle risk

avoid it assume it transfer it

What kind of insurance do you need after high school?

car health identity theft renter's

collision insurance

covers a loss to the insured's vehicle caused by its impact with another vehicle or object

Auto Liability Insurance

covers other people's property when you are at fault. by law you must have it. covers- bodily injury to others, property damage, first aid, court costs

Auto Comprehensive

covers things that you can't control. things that hit you.

Auto Insurance Price Cuts of a premium are based on:

credit history, driving records, age 25, home owner, multicar, good student (good grades), type of vehicle, sex, 15-20% down

property damage

damage to tangible property

which of the following is not a type of insurance homeowners auto deductible identity theft

deductible

Appraisal

estimated amount of damage to a vehicle and the cost to repair

true or false: you always want the lowest possible deductible because it means you will pay less out of pocket in case of a loss

false

The 7 basic types of coverage needed

homeowner's or renter's insurance auto insurance health insurance disability insurance (when you are established in your career) long-term care insurance (when you are 60 or older) Identity theft protection life insurance

if a person in your house was bitten by your dog, which type of insurance would you be covered under? life insurance health insurance disability insurance homeowners insurance

homeowners insurance

Auto Medical Expanse

hospital expense for you and your passengers, ambulance fees, funeral fees

bodily injury

injury to the body of a person

80/20

insurance company will pay 80% and you have to pay 20% up to a certain amount called out of pocket limit. then insurance company covers the remaining costs. you must meet the deductible first.

Life Insurance is NOT used for: Burial Expenses Investing in the stock market providing for dependents

investing in the stock market

Auto Underinsured/Uninsured

it provides protection in an event that damage is caused by a motorist that has no insurance or is underinsured.

higher deductible means

lower premiums

exclusion

parts of an insurance contract that excludes coverage of certain perils, persons, property, or locations

Auto Collision

pays for loss or damage to your vehicle caused by collision or upset when you are at fault. hit and run. covers your vehicle.

no-fault insurance

pays for medical and hospital expenses and loss of income - regardless of who is at fault

liability insurance

pays on behalf of the insured for certain types of injury to others. you are at fault. fixes the other person's vehicle

which is not a kind of health insurance: point-to-point service plan point-of-service plan health maintenance organization preferred provider organization

point-to-point service plan

comprehensive coverage

protects against any loss or damage to an automobile except those caused by collision or by upset

if your mp3 player is stolen from your apartment, what type of insurance would it be covered under? auto homeowners renters life

renters insurance

Two types of life insurance

term and whole

deductible

the amount of a claim that the policyholder has agreed to pay. this is paid first.

A deductible is: the discount you deduct from your premium the amount of loss you pay the amount that is deducted when you buy a policy the discount received by a health care provider

the amount of loss you pay

premium

the amount that a policyholder agrees to pay to the insurance company for an insurance policy

beneficiary

the individual or group of individuals named to receive the benefit of a life insurance policy

basic limits

the lowest coverage amount

limit of liability

the maximum amount that an insurer agrees to pay in the case of loss under policy contract

dependents

the persons who depend on someone for their livelihood. most often these are minor children and the spouse, but can be adult siblings, adult children, and elderly parents

coverage

the things that are protected or "covered" in an insurance policy

Most insurance companies sell you insurance because: the government requires them to they are charitable institutions with a mission to reduce hardship they generally take in more in premiums than they pay out

they generally take in more in premiums than they pay out

one of the two types of life insurance is: two-term whole-life terminal

whole-life