INSURANCE!

INSURANCE BASICS Life is full of RISK! You can’t eliminate risk, but you can manage it! Insurance Manages your risk of financial loss from illness, injury, or damage.

INSURANCE Premium Regular payments to an insurance company. This offers protection for you in the event that something happens to you. Policy A legal contract you sign when you buy insurance.

INSURANCE Claim A formal request for payment from the insurance company if loss occurs. When you make a claim, it is important to note that your premium may go up due to the claim.

HOME INSURANCE COVERAGE

HOME OWNERS INSURANCE Protects you against loss from: Fire Theft Other hazards

HOME OWNERS INSURANCE Personal Property Covers damage to or loss of your house and its contents. Covers not only the physical structure but also any unattached structures on your property such as a garage or storage shed. Interior Covers furniture, appliances, curtains, and clothes.

LIABILITY COVERAGE Covers bodily injury or damage you cause to others while on your property or in other locations. Example: You have been working on your roof. You leave the ladder up against your house as you go to lunch. Your neighbor’s child climbs up the ladder and falls off the roof and hurts themself. Your homeowner’s liability coverage will pay the child’s medical expenses and your legal expenses if the child’s parent sues.

RENTERS INSURANCE Provides same coverage as homeowner’s policy except it doesn't cover the structure of the property itself or accidents that happen outside of your rented apartment or house. A typical policy costs $ per year.

COST OF HOMEOWNERS INSURANCE Premium is determined by: Location Some neighborhoods have more crimes than others Age of the house Newer homes are less likely to burn down than older homes Distance to fire station or hydrant The closer you are to a fire station, the quicker the fire can be put out.

REDUCE PREMIUM Upgrade your home Old pipes can freeze and break Old wiring can cause a fire Install smoke detectors Install more security Special discounts Given to non-smokers Members who stay at home and don’t work

HEALTH INSURANCE

Provides money to pay for health care, illness, injury, or, in some cases, preventive care. Basic coverage includes: Hospitalization Surgery Outpatient services/Doctor visits Major Medical (serious illness/accident)

ADDITIONAL COVERAGE Medications Prescriptions can be very expensive. Generic Drugs- Medications that have the same chemical composition as their name brand counterparts but are less expensive. Some policies exclude certain medications from coverage such as medication for: depression, contraceptives, diet drugs, and experimental drugs. Dental Care Vision Care

PROVIDED BY... Health insurance can be provided by: Employer Individual Government

LIFE INSURANCE Provides payment to beneficiaries Someone who receives money if an insured person dies. This is important for someone who has dependents.

IDENTIFY THE TYPE OF INSURANCE THAT WOULD BEST COVER EACH EVENT 1.You invite people to your apartment and a guest trips over a pair of shoes and breaks a finger. 2. You get food poisoning and visit the ER. 3. You hit a tree with your car and you need it repaired.

IDENTIFY THE TYPE OF INSURANCE THAT WOULD BEST COVER EACH EVENT 4.Your house is destroyed by a tornado and you need to rebuild it. 5. You have a water leak in your kitchen and need to replace the flooring and cabinets. 6.An unexpected death of a family member results in funeral expenses.