WOW VI Personal Finance Insurance

Why do we Need Insurance?? To ‘Make Whole’ the person who suffers a loss. To spread the RISK of loss across many policy holders. A Necessary Evil

Actuary An insurance employee who calculates premiums and risks based upon historical data. Fantastic job, but very difficult to attain.

Risk The PRODUCT of the likelihood of a loss AND the value of the loss. High Probability X Low Value Medium Probability X Medium Value Low Probability X High Value

Liability Something owed to another. With Insurance, it’s Monetary. “You break it, you bought it.“

Make Whole Full compensation to the insured for the loss suffered. To ‘Clear’ a Liability Insurance compensation is monetary, it pays to fix or replace whatever is lost.

Premiums Periodic payments made to the Insurer for insurance coverage No Payment = No Insurance. DO NOT miss a payment!!!

Types of Insurance Auto Collision, Comprehensive Homeowner Fire, Flood, Hurricane, Liability, Theft Health Major Medical, Dental, Vision, Pharmacy Life Term, Whole

Collision Auto insurance to compensate for losses due to a collision. Insurance prefers ‘Collision’ to accident, as 99.9% of accidents can and should be avoided.

Comprehensive Auto insurance to compensate for losses NOT due to a collision. Includes: theft, vandalism, falling objects, fire, water, or natural disasters.

Uninsured Motorist Insurance coverage for losses from a driver who does not have insurance. Covers physical damage, bodily injury, and car repairs.

Oregon Insurance Minimums $25,000 for individual bodily injury $20,000 for personal property $50,000 in bodily injury to others $25,000 for Uninsured Motorist