Insurance

1. Insurance Insurance protects you from risk and the chance of loss. When you buy insurance you are trading paying premiums for protection.

2. Types of Risk Personal risk- These are catastrophes affecting individuals. Accidents Illness Disability Unemployment

3. Property risks- Property will be damaged or destroyed. • Automobile accidents • Natural Disasters • Fire • Vandalism

4. Liability risks- injuries to others or their property that you are responsible for or that occur on your property. • Car accidents • Visitor might be hurt in your home

5. Types of Insurances • Automobile Insurance- • Consider the following coverage • Liability Insurance- protects you against the claims of other people. It also protects you if you give someone else permission to drive you car. Liability insurance is required in most states. • Bodily injury insurance- protects you against court actions or claims for injuries to other people. It protects you against lawsuits for accidents for which you are responsible.

6. Property Damage insurance- Protects other people’s property against damage that you cause. It covers the cost of repairs to the other driver’s car if you are at fault in an accident. It also covers repairs to telephone poles, guardrails, traffic lights. • Collision Insurance- Pays for repairs to your car even if you are at fault. Required if you finance a car. • Uninsured/Underinsured motorist insurance- Provides for recovery of damages for any injury received form an insured/underinsured driver.

7. Car Insurance Premiums vary a great deal. They are determine by a rating systems. The rating systems include the following 1. Driving record of the owners 2. Age of the drivers 3. Home Address 4. Type of car driven 5. Whether the car is used for business or personal use 6. Number of miles traveled each year 7. Whether the car is kept in garage or outdoors 8. Satisfactory completion of a driver education course 9. Academic record and grades

8. Health Insurance- Helps people pay the costs of medical care. Covers hospital stay and examinations by physicians. Some also pay for prescription drugs, eyeglasses and dental work. Many employers usually provide a group insurance plan for full-time employees. Health Insurance Plans HMO – Health Maintenance Organization- Set fees are paid in advance. You go to a doctor that is associated with the HMO. PPO- Preferred Provider Organization- A managed health care plan in which an organization of doctors or hospitals contract with an insurance company to provide health services.

9. Life Insurance-Insurance designed to provide financial security to the family of the insured if that person dies. Deciding which type and how much life insurance to buy depends on your financial responsibilities. Types of Life Insurance Whole life insurance gains cash value over a period of years. The money you pay earns interest and may pay a dividend. Dividend is a payout, usually annual, on money earned on whole life insurance. Term life insurance is purchased for a limited period of time, such as 5 or 10 years. Policy can be renewed but the premiums increase at each renewal. Variable rate life insurance provides a guaranteed life benefit. You contribute a part of your premiums to investments.

10. Disability Insurance- Insurance that provides for people who become unable to work due to serious illness or injury. It allows disables employees to receive a percentage of their incomes for an extended period of time.

11. Property Insurance- protects your possessions against fire, theft, or other types of loss. Property insurance also provides liability coverage in the event that someone is injured in your home. • Other insurance policies may be needed for hurricanes and flood areas. • An inventory of all your possessions can help you decide how much property insurance to buy. • Insurance Claim- Requesting payment • from your insurance company for a • covered lost.