Insurance

Coverage Limit

The maximum amount the insurer (insurance company) will pay for losses, which is described in the insurance policy Any loss above the covered amount is the policyholder's responsibility

Insurance Policy

A legal contract between an insurance company and the policyholder buying the insurance -It details what is covered and what is excluded (not covered), as well as any conditions for coverage (conditions spell out what the insurance company won't pay)

Claims Adjuster

A person employed by an insurance company that investigates a claim and decides if the insurance company must pay a claim and if so, how much $ the insurance company will pay for the claim

Types of Life Insurance

Term Insurance - only pays money if you die during the term of your policy, usually between 1 and 30 years. (One the term expires, you no longer have life insurance) Whole Life- pays a benefit whenever you die....it does not expire

Insurance Premium

The amount of money the policyholder pays to an insurance company for an insurance policy

What is a Deductible?

The amount of the loss you pay when you file an insurance claim before the insurance company pays any money

Beneficiary

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

Policyholder

The person that purchases the insurance planf

Dependents

The persons who depend on someone for financial support - usuallly children under 18 and spouses

When do you use your disability insurance?

When ill or injured and you are unable to work for an extended period of time - the amount of time depends on the disability insurance policy you select and pay for

Disability Insurance

Will give you money to lose because you are unable to wirk due to injury or illness (pays 50%-70% of your income)

Who causes the car accident when collsion insurance is used to pay for repairs to your car?

YOU

Homeowner's Insurance

covers your possessions inside the house, as well as damage to the house itself, and expenses if anyone gets injured at your hoem

Decrease the Cost of Insurance Policies

-pay a higher deductible -shop around for rates - compare insurance companies/policies -take advantage of discounts (good grades, great credit score, excellent driving record)

Claim

A formal request from the policyholder to have the insurance company make payment for loss

Factors That Contribute To Cost of Insurance

Age Behavior Financial Stability Geography Deductible

Auto Insurance

Covers you in case of vehicle accident, your vehicle is broken into, your vehicle is stolen Also covers you, your passengers, and anyone you hit with your car provides you with: Liability Coverage - pays bodily injury of others or property damage you cause Medical Coverage - pays for treating your own or (pthers' injuries-if that person has no auto insurance) lost wages, funeral expenses Comprehensive - damage to your vehicle due to fire, theft, vandalism, object such as a tree falls on your car, or you hit an animal with your car Collision - damage to your car

Insurance

Insurance is an agreement in which and individual pays a company to protect him/her from possible loss or damage, can be a property loss or financial loss *Reimburses you for unexpected losses or damages caused by specific set of hazards such as illness or fire *When you are ready to purchase insurance, call an insurance company, and purchase an insurance policy

When does collision insurance cover damages to your car?

It covers your car when your car causes the accident and you don't have collision insurance, damages to your car will NOT be covered. Your collision insurance does not cover damages to the car(s) you hit

What does your auto liability & medical insurance cover?

Medical expenses (lost wages & burial expenses) for you and the passengers in the car -it does NOT cover medical expenses for person(s) that are not i your car even if you cause the accident unless the person(s) doesn't have auto insurance or the family members he/she lives with doesn't have auto insurance -Auto repairs for the car(s) you hit (damaged) because you caused the accident

Estimate

The cost to repair or replace damaged or stolen property

When does comprehensive auto insurance provide coverage and for whose car?

Your car - when your car is damaged due to fire, theft, vandalism, object(s) falling on your car, flood, natural disaster

Health Insurance

covers cost of planned and unexpected health serivces

Renters' Insurance

covers only your possessions and also expenses if anyone gets injured at your home. Your landlord's insurance would cover any damage to the building.

Life Insurance

pays a sum of money to a beneficiary when the insured dies