1. Questions to think about.
Key Terms
Insurance Basics
Questions to think about.
Copayment
HMO
PPO
COBRA
Term Life Insurance
Permanent Life Insurance
Will health insurance cover all of your health care expenses?
Which life insurance do I purchase?

2. Questions to ask yourself before you purchase health insurance.
Coverage for yourself or your family?
Starting a family?
Chronic illness or disability?
Is your doctor in the health plan?
How important is convenience in access to health care for you?
How much can you afford for premiums?

3. $4,800 x 0.20(your portion of the 80/20 coverage) = $960
Math & Money
Solution:
$5,000 - $200(deductible) = $4,800
$4,800 x 0.20(your portion of the 80/20 coverage) = $960
$200 + $960 = $1,160 You Pay
You have a $200 deductible and 80/20 coverage. You just had an illness that costs $5,000 in medical expenses. This was your only claim this year.
How much of this cost will you have to pay?
How much will the insurance company pay?
Solution:
$4,800 x 0.80(insurance companies portion of the 80/20 coverage) = $3,840 Insurance Company Pays

4. Comparison of Common Life Insurance Options
Term Life
Variable
Whole-Life
Premiums
Start low; increase
Stay Level
Coverage
Generally renewable to age 70-75
Permanent
Ability to Borrow No
Yes
Death Benefit
Fixed
Varies with investment returns
LifeSmart – pg 8 Please use new link for insurance quotes off website “helpful resources.”