Presentation on theme: "Business & Personal Finance"— Presentation transcript:
1 Business & Personal Finance INSURANCEBusiness & Personal Finance
2 The protection against possible financial loss. InsuranceThe protection against possible financial loss.Policy – A contact for insurance between the policyholder and the insurance companyPolicyholder – the purchaser of the policyPremium – a fee paid by the policyholder to the insurer for insuranceCoverage – protection provided by the terms of an insurance companyInsured – the people protected by the policy
3 Types of Risks Risk – the chance of loss or injury Peril – anything that may possibly cause loss.Hazard – anything that increases the likelihood of loss through some perilNegligence – failure to take ordinary or reasonable care to prevent accidents from happening.
5 A homeowner’s policy includes all of the following: The building in which you live and any other structures on the property.Additional living expensesPersonal PropertyPersonal liability and related coverage'sSpecialized coverage's
6 Added CoveragePersonal Property Floater – additional property insurance that covers the damage or loss of a specific item of high value.Umbrella Policy – (also called: personal catastrophe policy) supplements your basic personal injury claims.Medical Payments Coverage – pays the costs of minor accidental injuries to visitors on your property.
7 Factors That Affect Home Insurance Costs Location of Home Type of Structure Coverage Amount and Policy Type Home Insurance Discounts Company Differences
12 Bodily Injury Liability Insurance that covers physical injuries caused by a vehicle accident for which you were responsible.
13 Medical Payments Coverage Insurance that applies to the medical expenses of anyone who is injured in your vehicle, including you.It also pays if you or your family members are injured while riding in another person’s vehicle or if any of you are hit by a vehicle.
14 Uninsured Motorist’s Protection Insurance that covers you and your family members of you are involved in an accident with an uninsured or hit- and – run driver.
20 Type of Health Insurance Coverage Basic Health Insurance CoverageHospital ExpenseSurgical ExpensePhysician ExpenseMajor Medical Expense InsuranceLong hospital staysMultiple SurgeriesHospital Indemnity PoliciesSupplement to Basic Coverage and Major Medical
21 Dental Expense Insurance Vision Care InsuranceDread Disease PoliciesTrip accident, death insurance, cancer policiesIllegal in many statesIf you have major medical you are already coveredLong-Term Care Insurance
22 Private Health Care Plans Private Insurance CompaniesHospital and Medical Service PlansHealth Maintenance Organizations (HMO)Preferred Provider Organizations (PPO)Home Health Care AgenciesEmployer Self-Funded Health Plans
23 Hospital and Medical Service Plans Blue CrossProvides hospital care benefitsBlue ShieldProvides benefits for surgical and medical services performed by physicians
24 Health Maintenance Organizations Managed CarePrepaid health plans that provide comprehensive health care to their members. It is designed to control the cost of health care services by controlling how they are used.Health Maintenance Organization (HMO)A plan that directly employs or contracts with selected physicians and other medical professional to provide health care services in exchange for a fixed, prepaid monthly premium. Based on the idea that preventative services will minimize future medical problems.
25 Preferred Provider Organizations A group of doctors and hospitals that agree to provide specific medical services to members at prearranged fees.Point-of-Service Plan (POS)Combines features of both HMOs and PPOs
26 Government Health Care Programs MedicareFederally funded health insurance program available mainly to people over 65 and to people with certain disabilities.MedicaidA medical assistance program offered to certain low- income individuals and families .
27 Disability IncomeProvides regular cash income when you are unable to work because of pregnancy, a nonwork-related accident, or an illness
28 Life Insurance Protect against financial losses caused by death Types of Life Insurance PoliciesTerm InsuranceProvides protection against loss of life for only a specified term, or period of time. It pays the benefit only if you die during the period that it coversWhole Life InsuranceA permanent policy for which you pay a specified premium each year for the rest of your life
29 Additional Insurance Vocabulary Deductible – the set amount that the policy holder must pay per loss on an insurance policy.Claim – request for payment to cover financial losses.Liability – legal responsibility for the financial cost of another person’s losses or injuries.Copayment – a flat fee that you pay every time you receive a covered medical serviceBeneficiary – the person named to receive the benefits from a life insurance policy