Chapter © 2010 South-Western, Cengage Learning Health and Life Insurance Health Insurance Disability and Life Insurance 27

© 2010 South-Western, Cengage Learning SLIDE 2 Chapter 27 Lesson 27.1 Health Insurance GOALS Describe group and individual health insurance choices. Discuss common types of health insurance coverage. Discuss common types of health insurance plans. Explain Medicare and Medicaid coverage.

© 2010 South-Western, Cengage Learning SLIDE 3 Chapter 27 Group and Individual Health Insurance Health insurance is a plan for sharing the risk of high medical costs resulting from injury or illness. In exchange for regular premiums, the insurer promises to pay medical expenses for the treatments covered by the policy. Video

© 2010 South-Western, Cengage Learning SLIDE 4 Chapter 27 Group Policies Group insurance The most common type of health insurance is group insurance, in which all those insured have the same coverage and pay a set premium. Some employers pay the premiums as a benefit to their employees.

© 2010 South-Western, Cengage Learning SLIDE 5 Chapter 27 Group Policies Flex plans A Section 125 Flex Plan, or Flex 125 Plan, is an employee benefit program that allows employees to set aside money, pretax, to help pay deductibles, copayments, and other health expenses during the year that are not covered by insurance. (continued)

© 2010 South-Western, Cengage Learning Types of Coverage Basic health insurance Basic health coverage includes medical, hospital, and surgical costs. SLIDE 6 Chapter 27

© 2010 South-Western, Cengage Learning Types of Coverage Dental and vision insurance Dental insurance covers basic dental services, such as exams, cleanings, Xrays and fillings. VIDEOVIDEO Vision insurance often pays for exams for eye disease as well as for prescription adjustments and lenses. VIDEOVIDEO SLIDE 7 Chapter 27 (continued)

© 2010 South-Western, Cengage Learning SLIDE 8 Chapter 27 Medicare and Medicaid Medicare is government-sponsored health insurance for people age 65 or older. VIDEOVIDEO Medicaid is government-sponsored health insurance for people with low incomes and limited resources. VIDEO VIDEO

© 2010 South-Western, Cengage Learning SLIDE 9 Chapter 27 Lesson 27.2 Disability and Life Insurance GOALS Discuss different types of disability insurance. Describe the characteristics of different life insurance plans.

© 2010 South-Western, Cengage Learning SLIDE 10 Chapter 27 Disability Insurance Disability insurance is an insurance plan that makes regular payments (usually monthly) to replace income lost when illness or injury prevents the insured from working. Common types of disability insurance include: Group disability insurance Social Security disability insurance Workers’ compensation insurance

© 2010 South-Western, Cengage Learning SLIDE 11 Chapter 27 Life Insurance Life insurance provides funds to the beneficiaries when the insured dies. A group life insurance plan insures a large number of people under the terms of a single policy without a medical examination.

© 2010 South-Western, Cengage Learning SLIDE 12 Chapter 27 Types of Life Insurance There are two main types of life insurance: Temporary life insurance Permanent life insurance

© 2010 South-Western, Cengage Learning Temporary Life Insurance Temporary life insurance lasts for a specified period, such as 20 years. The most common form of temporary life insurance is term insurance. Term life insurance is a life insurance policy that remains in effect for a specified period of time. SLIDE 13 Chapter 27

© 2010 South-Western, Cengage Learning Review Video SLIDE 14 Chapter 27