Health and Life Insurance Ms. K. Scruggs

Choosing Health Care Insurance

Objective Given instruction, the learner will explore the functions and benefits of different types of insurance with 85% accuracy. Given instruction, the learner will explore the functions and benefits of different types of insurance with 85% accuracy.

Pre – “Qs” What are the types of health care coverage? What are the types of health care coverage? How do you get health insurance if your employer does not offer it? How do you get health insurance if your employer does not offer it? What is managed care? What is managed care? What does disability insurance cover? What does disability insurance cover?

Types of Health Care Coverage Dental and Vision Coverage Dental and Vision Coverage Disability Coverage and Long-Term Care Disability Coverage and Long-Term Care

Understanding the Cost Premium Premium Deductible Deductible Coinsurance Coinsurance Co-pay Co-pay Out-of-Pocket Out-of-Pocket

Sources of Health Insurance Group Insurance Plans Group Insurance Plans Individual Health Insurance Individual Health Insurance Government Program Government Program

Group Insurance Plans Employer-sponsored health plan Employer-sponsored health plan When many people are covered under the same policy, premiums are considerably less than they would be for individual policy. When many people are covered under the same policy, premiums are considerably less than they would be for individual policy. COBRA COBRA Consolidated Omnibus Budget Reconciliation Act Consolidated Omnibus Budget Reconciliation Act It is a federal law that requires employers to let workers temporarily continue with their health insurance plan after leaving the company, usually for 18 mos. It is a federal law that requires employers to let workers temporarily continue with their health insurance plan after leaving the company, usually for 18 mos.

Individual Health Insurance Policies Individual Health insurance is offered to people that have jobs that does not offer health insurance and also to entrepreneurs. Individual Health insurance is offered to people that have jobs that does not offer health insurance and also to entrepreneurs. Some offers a Short-Term plans which is for those who want coverage for only one to six months Some offers a Short-Term plans which is for those who want coverage for only one to six months

Individual Health Insurance Pros You can keep your same coverage even if you change jobs. Cons It has very high monthly premiums and large deductibles. Insurance companies might deny coverage for people with a preexisting conditions

Government Programs Federal and state governments run health care programs for specific segments for the population. Federal and state governments run health care programs for specific segments for the population. Medicare Medicare Medicaid Medicaid State-Run Heath Care Programs State-Run Heath Care Programs Workers’ Compensation Workers’ Compensation

Manage Care Plan An insurance plan that focuses on managing the overall cost, use, and quality of the health care system. An insurance plan that focuses on managing the overall cost, use, and quality of the health care system. HMOs Health Maintenance Organization PPOs Preferred Provider Organization POS Plan Point-of-Service Plans

Disability Insurance It replaces a portion of lost income if the policyholder is unable to work due to illness or injury It replaces a portion of lost income if the policyholder is unable to work due to illness or injury Types of Disability Insurance: Employer Plans Employer Plans Social Security Disability Coverage Social Security Disability Coverage Workers Compensation Insurance Workers Compensation Insurance Individual disability insurance Individual disability insurance

Health Care Insurance Agencies Blue Cross Blue Shield Blue Cross Blue Shield Nationwide Nationwide Aetna Aetna AARP Health AARP Health Humana Humana

Post – “Qs” Name the different types of cost in health care insurance. Name the different types of cost in health care insurance. What sources of health insurance does the employers offers? What sources of health insurance does the employers offers? What plan is offered under federal law that covers you when leave the job up to 18 months? What plan is offered under federal law that covers you when leave the job up to 18 months? Name several manage care plan? Name several manage care plan?

Assignment Research a health care insurance plan under a preferred agency that offers health insurance. Look up their plans and choose a plan or coverage and explain why it best fits your lifestyle or future lifestyle. Use Microsoft Word To research the Agencies use the Google, Bing, or Yahoo search engine. Research a health care insurance plan under a preferred agency that offers health insurance. Look up their plans and choose a plan or coverage and explain why it best fits your lifestyle or future lifestyle. Use Microsoft Word To research the Agencies use the Google, Bing, or Yahoo search engine.

Life Insurance

Objective Given instruction, the learner will explore the functions and benefits of different types of insurance with 85% accuracy. Given instruction, the learner will explore the functions and benefits of different types of insurance with 85% accuracy.

Pre – “Qs” Why should someone in his or her twenties think about getting a life insurance policy? Why should someone in his or her twenties think about getting a life insurance policy? What is an annuity? What is an annuity?

Why buy Life Insurance? Pay off debts owed at the time of death Pay off debts owed at the time of death Provide income to spouse and dependents Provide income to spouse and dependents Provide for the education of children Provide for the education of children Make charitable donations Make charitable donations

Beneficiary A person or institution that is named to receive the benefits of an insurance policy. A person or institution that is named to receive the benefits of an insurance policy.

Types of Life Insurance Term Life Insurance pays out benefits only if you die during the specific time period when the policy is in force. Term Life Insurance pays out benefits only if you die during the specific time period when the policy is in force. Permanent Insurance Permanent Insurance Whole Life Insurance a permanent insurance policy that protects the policyholder during his or her whole life, paying a death benefit but also building up an additional cash value. Whole Life Insurance a permanent insurance policy that protects the policyholder during his or her whole life, paying a death benefit but also building up an additional cash value.

Other Types of Permanent Life Insurance Variable Life Insurance Variable Life Insurance You are allowed to determine how to invest a portion of your premium. If those investments grow, the policy is worth more You are allowed to determine how to invest a portion of your premium. If those investments grow, the policy is worth more Universal Life Insurance Universal Life Insurance These policies allow you to adjust the amount of coverage to match changes in your life and need. These policies allow you to adjust the amount of coverage to match changes in your life and need.

Sources of Insurance Group Life Insurance and Group Life Insurance and Individual Life Insurance are available Individual Life Insurance are available

How Premiums are Determined Life Insurance premiums are based on the insurance company’s predictions about people’s life span. Life Insurance premiums are based on the insurance company’s predictions about people’s life span. The federal government publishes a life expectancy tables that estimate how long a man or woman of a particular age can be expected to live, on average. The federal government publishes a life expectancy tables that estimate how long a man or woman of a particular age can be expected to live, on average.

Sample Life Expectancy

Evaluating Life Insurance Policies Term vs Permanent Term vs Permanent Look for Renewable Term Policies Look for Renewable Term Policies How much do you need? How much do you need? LIFE LIFE Bankrate.com Bankrate.com

Annunities An investment that guarantees regular payments to the policyholder, usually beginning at retirement and continuing for a fixed number of years or until death An investment that guarantees regular payments to the policyholder, usually beginning at retirement and continuing for a fixed number of years or until death

Post – “Qs” Name two types of life insurance. Name two types of life insurance. Why do we buy life insurance? Why do we buy life insurance? What is a beneficiary? What is a beneficiary? What is an annuity? What is an annuity?

Reference Personal Finance A Lifetime Responsibility Personal Finance A Lifetime Responsibility