2. Selecting Insurance SELECT INSURANCE FOR A SPECIFIC CIRCUMSTANCE 1 ©2012 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance

3. Do You Know? 1. What are the top five most expensive states for car insurance ? 2. Young adults in their 20’s and 30’s account for what percentage of new long-term disability claims? a.Zero, they haven’t worked long enough to file disability claims b.A small portion because of their good health and youth (0-5 percent) c.A significant portion (20 percent) 3. Which of the following is a major factor in nearly a third of all business bankruptcies? a.employee theft b.customer theft c.poor management ©2012 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance 2

4. Preview Today we will answer these questions: What can I insure? What types of insurance are right for me? Will I have the same insurance my entire life? Use what you learn today to decide on insurance coverage for a specific circumstance. 3 ©2012 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance

5. Specialist Insurance Topics Auto Dental Disability Fidelity Bond Health Homeowners’ Liability Life Renters’ Unemployment Vision Workers’ Compensation ©2012 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance 4

6. Specialist Report Outline 1. What is the purpose of the insurance? 2. Who is the logical candidate to purchase the insurance? 3. What factors impact the cost of this type of insurance? 4. Do you think that the insurance is worthwhile? Why or why not? 5. What are some ways to keep costs down for this type of insurance? ©2012 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance 5

7. Reflection What two or three types of insurance coverage do think are most important for teens and young adults? Why? 6 ©2012 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance

8. Challenge Assignment 6-C Should you insure your cellphone? 1. Find out how much it would cost to replace or repair your phone. 2. Find out the cost of cellphone insurance, the terms, any deductible, and the conditions for coverage. 3. Investigate whether or not your cellphone is covered by an existing homeowners’ insurance policy. 4. Decide whether or not it is worthwhile to insure your cellphone. 5. Consider alternative ways to reduce, avoid, or accept the risk to replace the cellphone. 7 ©2012 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance