Insurance

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Insurance
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Insurance Basics

• To manage your risk of financial loss from
  illness, injury, or damage, you can buy
  insurance.
• In exchange for this protection, you make a
  regular payment to the insurance company called a
  premium.

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Insurance Basics

• When you buy insurance, you sign a legal contract
  called a policy.
• You then become the policyholder.
• Different policies protect you from different
  types of loss.
• If you do have a loss covered by your insurance
  policy, you file a claim, a formal request for
  payment from the insurance company.

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Insurance Basics

• Insurance works by transferring funds from a
  large group to the few who actually suffer
  losses.
• Insurance companies collect premiums from all the
  policyholders.
• Then, they use these funds to pay policyholders
  who have losses.

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Insurance Basics

• The purpose of buying insurance is to protect
  against the loss of something of value.
• Insurance is designed to restore your financial
  position to where it was before the lossnot to
  allow you to profit from the loss.
• To insure something, you must have an insurable
  interest, in the item.
• Insurable interest something of value, that if
  lost, would cause you financial harm

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Insurance Basics

• Before you can insure your property, its value
  must be measured in financial terms.
• Then, if you lose the insured item, the insurance
  company will compensate you based on its value.

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Automobile Insurance
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Automobile Insurance

• Types of Coverage
• Bodily injury liability coverage insurance that
  protects you against financial loss, including
  the cost of your legal defense, when you are
  legally responsible for injuring other people in
  an automobile accident

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Automobile Insurance

• Types of Coverage
• Property damage liability coverage insurance
  that pays for damage you caused to another
  persons property. It does not cover damages to
  your car.

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Automobile Insurance

• Types of Coverage
• Medical payments coverage insurance that pays
  medical and funeral expenses for you, your family
  members, and other passengers in your car because
  of injuries sustained in an accidentno matter
  who caused the accident

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Automobile Insurance

• Types of Coverage
• Uninsured/underinsured motorist coverage
  insurance that pays medical and damage expenses
  for you and your passengers caused by a driver
  without insurance or with too little insurance to
  cover the loss. It does not cover the other
  driver.

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Automobile Insurance

• Types of Coverage
• Comprehensive coverage insurance that pays for
  damage to your car caused by something other than
  a collision.
• Examples earthquake, fire, wind, hail, floods,
  vandalism, stolen car

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Automobile Insurance

• Types of Coverage
• Collision coverage insurance that pays damage to
  your car caused by colliding with another car or
  object.
• Comprehensive and collision coverage often carry
  a deductible.
• Deductible the amount you pay before the
  insurance company pays anything.

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Automobile Insurance

• Factors affecting your premium
• Driver Classification
• Age
• Gender
• Marital status
• Rating Territory
• Depends on the city and state that you live in

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Automobile Insurance

• Factors affecting your premium
• Driving Record
• List of accidents and traffic violations
• Type of Car
• Premium will be higher for high-risk cars, such
  as expensive sports cars and luxury cars
• Some cars are more expensive to repair or
  replace, which results in a higher premium
• Claims History
• The more claims you make on your policy, the more
  you cost the company, so your premiums will be
  higher

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Health Insurance
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Health Insurance

• Like other forms of insurance, you must pay a
  premium for health insurance to your medical
  insurance company.
• The point of having medical insurance is to
  alleviate the financial burden on you and your
  family in case of medical emergencies and/or
  chronic illnesses

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Health Insurance

• There are more costs to health insurance besides
  the premium
• Deductible a pre-arranged dollar figure that
  youll have to pay before the health insurance
  company begins to contribute any money to your
  health care costs
• Co-payments you agree to pay a certain dollar
  figure for each service
• Co-insurance you agree to pay a certain
  percentage of your health care costs

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Health Insurance

• Depending on your place of work, you will have
  different health care policy to choose from.
• Each medical insurance plan have different
  coverage priorities.
• Some of these include
• Doctor visits
• Hospital and extended care
• Emergency
• Prescription drugs
• Home health care

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Health Insurance

• Depending on how much you want to pay, you might
  want to include other, less common, areas in your
  medical insurance coverage.
• Examples
• Dental insurance
• Vision care
• Care by specialists
• Physical therapy
• Chiropractic care

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Renters Insurance
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Renters Insurance

• If you rent an apartment or condo, you need
  insurance to protect your belongings
• Your landlords insurance does not cover your
  belongings, it only protects the building

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Renters Insurance

• Renters insurance covers losses to your personal
  property from
• Fire or lightning
• Windstorm or hail
• Explosion
• Aircraft
• Vehicles
• Smoke
• Vandalism
• Theft
• Falling objects
• Weight of ice, snow, or sleet
• Water-related damage from home utilities
• Electrical damage

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Renters Insurance

• Floods and earthquakes are not covered by renters
  insurance
• If you live in an area prone to either, you will
  need to buy a separate policy

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Renters Insurance

• To insure compensation for any belongings you
  lose, you should inventory all of your personal
  belongings
• Your inventory should list each item, its value,
  and serial number
• Photograph each room
• Keep receipts for major items in a fireproof place

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Renters Insurance

• Most insurers offer a discount for protective
  devices, including smoke and fire detectors,
  burglar alarms, and fire extinguishers
• Some insurers might offer discounts to policy
  holders if you buy both an auto and renters
  policy (called a multi-line discount)