1 TORNADO

2 WHAT MAY BE LEFT AFTER A FEW MINUTES OF DISASTER

3 Anything can happen and sometimes does

4 Types of insurance There are basically three types of insurance. --Life and health insurance --Property and casualty insurance --Production insuranceCrop insurance

5 Insurance A person takes out an insurance policy and pays a professional risk taker ( the insurance company) a small but regular sum of money ( premium) to assume the financial burden in case of the unexpected.

6 Insurance How much risk are you willing to bear? Insurance is a tool to use to reduce individual risk Insurance is a response to problems caused by catastrophic losses due to unplanned major losses. Insurance cost money– but compared to the potential financial loss or liability it may be a small amount Insurance is not intended to make a profit for the insured.

7 Types of Insurance Life Insurance– Protects your family against loss of income because of a death in the family Accident and Health Insurance– Protects you against the expenses arising from illness and accident, as well as loss of income from illness and accident Property and Casualty Insurance– Protection against loss if property is damaged, destroyed, or stolen. Liability Insurance– Protects against lawsuits if you cause personal injury or damage property of others

8 Points to remember Insure against losses that may lead to financial disaster Insure the irreplaceable or the most necessary property first Dont insure anything you can easily afford to replace yourself Be sure the coverage is adequate Buy insurance that provides coverage for situations you are likely to have a claim Remember insurance is not there to make money

9 Insurance Few could bear the risk of fire, accidents, lawsuits, and death in the family It protects the family financially and lessens the hardship of unexpected economic loss It meets your obligation to others who might suffer injury or loss because of something you did It makes it possible for you to take certain risks you otherwise could not take

10 Workers Compensation Insurance system required for employees of a business Covers job related injuries and sickness In a job-related accident or sickness occur, the workers compensation policy from the business is the only policy paying for the employees expenses It is possible to get workers compensation on a self- employed person Disability insurance can protect insured against a loss of income caused by injury or illness. It provides income for a specified amount of time.

11 Selecting an Insurance Agent or Company Insurance agents are salespeople– pick one you can trust Independent agents can offer a variety of coverage from many different insurance companies Price should not be the only decision– make sure to check into– coverage, service, needs, financial stability, and prompt payment of claims.

12 THE END Complete the Insurance Evaluation and Worksheet