Peace of Mind

1. Peace of Mind Insurance can give you financial security and peace of mind, especially in case of unexpected expenses. When do people use insurance?

2. Lesson Objective Compute health insurance premiums. Content Vocabulary • health insurance health insurance Provides financial protection against overwhelming medical expenses. traditional plan Offers health care coverage where the health care provider is paid a predetermined dollar amount for the service given. preferred provider organization (PPO) A group of selected health care providers who offer comprehensive services at preset reimbursement levels. health maintenance organization (HMO) A prepaid health plan in which care providers contract with (or are) employees of the HMO to provide you with services. • traditional plan • preferred providerorganization (PPO) • health maintenanceorganization (HMO)

4. Lesson Objective Calculate the amount the patient pays for health care. Content Vocabulary deductible The amount of money you must pay each year before your insurance company starts paying. co-insurance Requires you to pay either a set amount or a certain percent of medical expenses. co-payment A predetermined flat fee you pay for health care services. • deductible • co-insurance • co-payment

6. Lesson Objective Utilize tables to compute the annual premium for term life insurance. Content Vocabulary life insurance Financial protection for a family in case the main source of income dies. term life insurance Life insurance for a specified term, such as five years, or to a specified age. beneficiary The person who receives money from a life insurance policy if the insured dies. • life insurance • term life insurance • beneficiary

8. Lesson Objective Apply tables to data to compute the annual premiums for three types of life insurance. Content Vocabulary whole life insurance Also known as permanent life insurance, offers financial protection for your entire family. cash value The amount of money you will receive if you cancel your whole life insurance policy. limited payment policy A whole life insurance policy that is paid up after a specified number of years, or until the insured reaches a certain age, but offers lifetime protection. universal life insurance A combination of a life insurance policy and a savings account. It covers the insured for his or her lifetime, and any amount the insured pays over the minimum premium goes into an investment account that earns interest. • whole life insurance • cash value • limited payment policy • universal life insurance

10. Summary Insurance Types • Health Insurance • Traditional Plan • Preferred provider organization(PPO) • Health maintenance organization(HMO) • Life Insurance • Term life insurance • Whole life insurance • Universal life insurance Insurancing Your Future Health and life insurance protect you and your family.

11. Lyle Thorpe’s employer pays 75% of the total cost of his health insurance. The annual premium for the policy is $4,390. What is Lyle’s annual contribution? • $892.34 • $1,003.45 • $1,097.50 • $3,295.50

12. Joe Brann’s employer pays 90% of the total cost of his PPO annual premium of $6,530. Joe’s contribution is deducted from his paycheck. What is Joe’s monthly deduction? • $54.42 • $156.50 • $229.04 • $489.75

13. Rochelle Wiley-Stevens is self-employed and pays 100% of her insurance premium which is $4,250 annually. She also has a dental plan that costs $540 a year and a vision plan that costs $213 a year. She pays the premiums quarterly. How much does Rochelle pay each quarter? • $1.005.40 • $1,250.75 • $1,750.90 • $2,300.00

14. Harriett Rawlins has a $1,000 deductible. She is charged $20 per visit to the doctor, $30 per visit to a specialist, and 20% of each physical therapist visit. Last year she had 11 visits to the doctor, 8 to the specialist, and 13 physical therapist visits at $90 a piece. What amount did Harriett pay last year? • $694 • $854 • $1,324 • $1,694

15. Connie Vanderbilt is charged $25 for each generic prescription and $50 for each brand name prescription. Last year she had the following pharmacy charges: 7 generic drugs and 6 brand name drugs. How much did Connie pay? • $475 • $550 • $575 • $650

16. Alexandra Davis is 30 years old. She wants to purchase a $75,000, 5-year term life insurance policy. The premium per $1,000 is $2.77. What is her annual premium? • $200.91 • $207.75 • $215.40 • $243.11

17. At age 55, Keith Thomas purchases an $85,000, 5-year term life insurance policy. The premium per $1,000 is $11.45. What is the annual premium? • $650.90 • $775.40 • $850.25 • $973.25

18. Richard Hopkins is 30 years old. He wants to purchase a whole life insurance policy with a face value of $150,000. The annual premium per $1,000 is $11.75. What is Richard’s annual premium? • $1,540.00 • $1,650.75 • $1,762.50 • $1,890.25

19. Mary Jane Levine purchased a $100,000 whole life insurance policy when she was 45 years old. The annual premium per $1,000 is $18.75. Every three months she puts one quarter of the total amount in a savings account. How much does she save each quarter? • $468.75 • $980.50 • $1,406.25 • $1,875.00

20. A 20-year old female obtains a limited payment policy until age 65 of $50,000. The annual premium for this policy per $1,000 is $9.75. What is her annual premium? • $349.70 • $487.50 • $560.90 • $982.15

21. End of Chapter 11 Insurance