1. November 2005 Getting Insurance Instructor: xxxx

2. November 2005 Objectives Determine the purpose for purchasing insurance. Explore the different types of auto, life, property and health insurance. Identify basic insurance terminology. Identify the types of insurance that you do not need. Define supplemental insurance coverage and determine whether it is necessary.

3. November 2005 What Insurance Do I Need? The Purpose of Insurance To avoid financial disaster “Indemnity” – What does it mean? Basic Rules of Thumb when considering insurance: Never risk a lot for a little. Never risk more than you can afford to lose. EXERCISE: Determine what you want insurance coverage for?

4. November 2005 More Purposes for Insurance Coverage Vehicle Liability Insurance “Liability” is… Military Regulations concerning “Liability” Replacing Possessions After disasters, theft, or damage Care of Survivors Life Health Disability

5. November 2005 The Primary Reason for Insurance How insurance works and Defining Key Terms Premium Based on Risk Category Can Be Based on Your Credit History Claim Involves Paperwork and Proof Deductible What You’ll Pay Co-payment or co-pay Percentage of bill AFTER deductible / TRICARE Standard = 20%/80%

6. November 2005 Collecting On a Claim Contact Insurance Company ASAP Keep company informed of facts Maintain daily or weekly contact Provide documented proof of the loss Don’t Take NO for An Answer Be assertive Never sign a release Your Right to Appeal If you disagree with a settlement, communicate with your agent May need a “Third Party” opinion

7. November 2005 Insurance You DON’T Need Which of these insurance types do you need? a.Credit Card Insurance b.Term Life Insurance c.Credit Life Insurance d.Credit Disability/Credit Unemployment e.“Dread Disease” Insurance f.Pet Insurance Other insurance you don’t need: Rental Car Insurance Air Travel

8. November 2005 Getting the Most for Your Money Vehicle Insurance combines Liability and Property. Types of Vehicle Coverage: Liability Uninsured Motorist Physical Damage Medical Expense Insurance Minimum Amounts of Coverage (25/50/50): Bodily Injury Liability: $25,000 per person Accident: $50,000 Property Damage Liability: $50,000

9. November 2005 Where to Buy Vehicle Insurance Vehicle insurance is standardized in U.S. Costs may differ from company to company. Compare prices by calling for quotes. Should you Mail Order insurance? Not the best way to buy insurance. Do so only if you feel comfortable with the coverage. Reducing Your Costs Deductibles – High or Low? Will filing a Claim raise my insurance premiums? Stay out of trouble! Deployment

10. November 2005 Life Insurance Purpose: To help cover financial losses after the death of a money earner. To Determine Your Needs, ask yourself: Do you have young children? Is your spouse capable of self-support? Do you have elderly or disabled dependents? Do you have significant debts? Life Insurance needs change as you grow older.

11. November 2005 Military Benefits Survivor Benefits: Soldier’s Burial Expenses Casualty Assistance Calls Officer Assistance Transportation to the Funeral Allowed Housing or BAQ for 3 Months Dependency & Indemnity Compensation Servicemen's Group Life Insurance (SGLI)

12. November 2005 Who Should Have Life Insurance? ANSWER: Anyone with family members dependent on their income. Two Primary Types Available: TermCash Value Covers a specified timePays Death Benefit Pays only during specified timeSlowly builds cash value Cheapest, simplest insuranceMore expensive Only payback: Death BenefitMay have additional features Only you can determine your needs and lifecycle changes.

13. November 2005 Where to Buy Life Insurance Shop around using these guidelines: Compare cost per $1,000 of coverage per year. Calculate “Per-Unit Pricing.” Ask about commissions and fees. Avoid policies that charge both commission and a “back-end load.” Check the financial stability of the company. Investigate Insurance Companies’ ratings reports available in most libraries.

14. November 2005 Personal Property Insurance Covers the loss of, or damage to, your possessions. Renters Need Renter’s Insurance! Homeowner’s and Liability Insurance covers: Property damage Damage to personal property Liability against damage to other people and property Your expenses if you cannot live in the home If you deploy, do you need to keep your insurance?

15. November 2005 Where to Buy Personal Property Insurance Shop around. Have a list of your possessions and their replacement values. Ask for explanation all policy coverage, exclusions, and costs. Ask for replacement value coverage.

16. November 2005 Health and Disability Insurance What Do You Need and Where to Buy It? TRICARE Prime is medical coverage at no cost to you. You can enroll in other TRICARE programs to receive care from civilian providers. Enrollment in Defense Eligibility Enrollment Reporting System (DEERS) is a must. Supplemental Health Insurance Disability Insurance Social Security Disability Coverage

17. November 2005 Reviewing Objectives Discussed the advantages and disadvantages of using credit. Explained how lenders calculate the interest rates. Developed skills in choosing charge accounts, credit cards, and installment loans. Applied proven methods in managing credit accounts. Discussed the importance of establishing a good credit record. Identified what information credit bureaus keep on consumers and explain consumers' rights.