Health and Life Insurance

1. Health and Life Insurance Ms. K. Scruggs

2. Choosing Health Care Insurance

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

4. 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?

5. Types of Health Care Coverage • Dental and Vision Coverage • Disability Coverage and Long-Term Care

6. Understanding the Cost • Premium • Deductible • Coinsurance • Co-pay • Out-of-Pocket

7. Sources of Health Insurance • Group Insurance Plans • Individual Health Insurance • Government Program

8. 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.

9. 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

10. Individual Health Insurance Pros Cons It has very high monthly premiums and large deductibles. Insurance companies might deny coverage for people with a preexisting conditions • You can keep your same coverage even if you change jobs.

11. 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

12. 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

13. Disability Insurance • It replaces a portion of lost income if the policyholder is unable to work due to illness or injury Types of Disability Insurance: • Employer Plans • Social Security Disability Coverage • Workers Compensation Insurance • Individual disability insurance

14. Health Care Insurance Agencies • Blue Cross Blue Shield • Nationwide • Aetna • AARP Health • Humana

15. 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?

16. 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.

17. Life Insurance

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

19. Pre – “Qs” • Why should someone in his or her twenties think about getting a life insurance policy? • What is an annuity?

20. 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

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

22. 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.

23. 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.

24. Sources of Insurance • Group Life Insurance and • Individual Life Insurance are available

25. 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.

26. Sample Life Expectancy

27. 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

28. 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

29. Post – “Qs” • Name two types of life insurance. • Why do we buy life insurance? • What is a beneficiary? • What is an annuity?

30. Reference • Personal Finance A Lifetime Responsibility