1. Chapter 22 Buying InsuranceSucceeding in the the World of Work 22.3 Health and Life Insurance SECTION OPENER / CLOSER INSERT BOOK COVER ART Section 22.3 Health and Life Insurance

2. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Health Insurance Health care costs are rising. How can you control your medical bills? See if you can participate in your employer’s health insurance plan.

3. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Types of Coverage The three main types of health coverage are: major medial coverage, health maintenance organizations (HMOs), and preferred provider organizations (PPOs).

4. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Major Medical Coverage Major medical coverage is insurance that covers hospital and medical expenses, allowing free choice of hospitals and doctors but requiring a deductible and coinsurance.

5. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Health Maintenance Organizations Health Maintenance Organizations (HMOs) is a type of health coverage with no deductibles. Members pay a small copayment for doctor visits.

6. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Preferred Provider Organizations PPOs offer some of the low-cost advantages of HMOs, but allow more freedom to choose your own doctor. With PPOs, you often pay higher premiums and copayments than with HMOs.

7. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Types of Coverage One limiting factor of the HMO is the gatekeeper system. You choose a primary doctor, and can only see another doctor at the recommendation of the primary.

8. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Types of Coverage With a PPO, any doctor in the program is available. One disadvantage to HMOs and PPOs is that doctors in their networks may be discouraged from prescribing costly treatments or surgical procedures that may not be absolutely necessary.

9. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Types of Plans The two types of health care plans are: group plans, and individual plans.

10. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Group Plans Most group plans are offered through employers. Premium costs are lower, because risk is spread over a large number of people. Group plans usually have a deductible, coinsurance, and major medical coverage.

11. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Individual Plans People who are not enrolled in group plans can buy insurance through an individual plan. This coverage can be expensive.

12. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Disability Coverage Disability insurance pays you a percentage of your salary if you are unable to work.

13. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Disability Coverage Short-term disability coverage usually covers you for only a few months. Long-term disability coverage can pay for a lifetime of missed work.

14. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Life Insurance If others in your household count on your salary, life insurance will provide money to them in case you die. Many employers offer life insurance, but many people buy additional coverage.

15. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Buying Life Insurance If someone depends on you for your earning power, you should have life insurance. If you have no dependents, you may not need life insurance.

16. Chapter 22 Buying InsuranceSucceeding in the World of Work 22.3 Health and Life Insurance Buying Life Insurance The amount of life insurance you need depends on: how old you are, whether you have dependents, how much debt you have, and how much insurance you can afford.

17. Chapter 22 Buying InsuranceSucceeding in the the World of Work 22.3 Health and Life Insurance SECTION OPENER / CLOSER INSERT BOOK COVER ART End of Section 22.3 Health and Life Insurance