7.10.1.

L1 Note taking guide

Types of Insurance Essentials Note-Taking Guide

Name__________________ 39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:

Rebecca Channell

4/10/14 Date__________________

4th Class _________________

Risk:

Insurance:

Policy:
a contract between the individual and the insurer specifying the terms of the insurance arrangements

the consumer who purchased the policy

Premium:
the fee paid to the insurer to be covered under the specified terms

an uncertainty about a situation's outcome

an arrangement between an individual and an insurer to protect the individual against risk

Deductible:
the amount paid out of pocket by the policy holder for initial portion of a loss before the insurance coverage begins

AUTOMOBILE INSURANCE Liability Medical payment Uninsured/under insured Physical damage

covers damages caused to the vehicle

Types

covers the insured if injuries or damages are caused to other people or their property

covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault.

covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance
no

Collision
covers a collision with another object, car, or from a rollover

Comprehensive
covers all physical damage losses except collision and other specified losses

Required by law Who/ what is covered

yes

no

no

the other person or there property

the people

the people and vehicle

the vehicle

Family Economics & Financial Education October 2010 The Essentials to Take Charge of Your Finances Types of Insurance Page 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.10.1.L1 Note taking guide

HEALTH INSURANCE Why is it important to purchase health insurance? Provides protection against:
provides protection against financial losses resulting from injury, illness, and disability. The purpose is to provide coverage for emergency or routine medical expenses

May cover:

How may health insurance be purchased?

provide coverage for emergency or routine medical expenses

hospital, surgical, dental, vision, long-term care, prescription, and other major expenditures

by an individual or through their employer

Children may stay on their parents health insurance until:

19
LIFE INSURANCE Life insurance:
contract between an insurer and policyholder specifying a sum to be paid to a beneficiary upon the insureds death

Beneficiary:

Dependent:

the recipient of any policy proceeds if the insured person dies

a person who relies on someone else financially

Who should purchase life insurance?

people who have a dependent spouse, dependent children, an aging or disabled dependent relative, or are business owners.

DISABILITY INSURANCE Disability insurance:

replaces a portion of ones income if they become unable to work due to illness or injury

If needed, how much does disability insurance pay an individual?

between 60% 70% of ones full time wage

HOMEOWNERS AND R ENTERS INSURANCE Peril:

an event which can cause a financial loss like fire, falling trees, lightning, and others

Renters insurance:
protects the insured from loss to the contents of the dwelling rather than the dwelling itself

Homeowners insurance:

combines property and liability insurance into one policy to protect a home from damage costs due to perils

Property insurance:
protects the insured from financial losses due to destruction or damage to property or possessions

Why is it important for a renter to purchase renters insurance?

andlords insurance policy on the dwelling does not cover the renters personal possessions

Liability insurance:
protects the insured party from being held liable for others financial losses. The homeowners insurance should cover the replacement cost which will pay to rebuild the home if it is completely destroyed

Covers:

renters personal possessions

Family Economics & Financial Education October 2010 The Essentials to Take Charge of Your Finances Types of Insurance Page 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona