1. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Unit 6 - Insurance: Protecting What You Have

2. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Objectives Identity ways to manage risk Describe how insurance is use to protect against financial loss Explain the features and protection related to car insurance Examine how insurance needs vary from person to person because of lifestyle and life situation Access how insurance fits into financial planning

3. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Success is defined by... You identify lifestyle characteristics that will affect you insurance needs now and three years from now You outline your insurance needs related to your current lifestyle You outline you potential insurance needs related to your predicted lifestyle 3 years from now You estimate the monthly or annual costs of each type of insurance You describe how your insurance needs will affect your budget You list at least 3 specific ways you can reduce your insurance costs You describe specific ways you can avoid, reduce, accept and/or share the risk of personal and financial loss You provide rationale for choosing insurance and other risk management options

4. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure ExposureRisk Potential Loss Accident or Illness PropertyOwnership Liability Loss of income from inability to work; uninsured medical bills; death Your property is damaged, destroyed, lost, or stolen You are found liable for injuries to other people or damages to their property UNLIMITED UNLIMITED Amount needed to replace your property Common Exposures to Loss 6-A

5. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Avoid it Share it Alternatives for Managing the Possibility of Loss Accept it 6-B Reduce it Share it

6. ?AVOIDNIGHTDRIVING ALWAYSWEARSEATBELTS? ? ? ?OBEYSPEEDLIMITS MANAGING LOSS FROM INJURY INJURY IN A CARACCIDENT 6-C

7. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Avoid it Reduce it Share it Managing the Possibility of Loss Accept it 6-D

8. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure My Personal Financial Risk Exposures ExposureRiskHow to EvaluatePotential Loss How much would I lose if I couldn’t work for: 1 week? 1 month? 1 year?Unlimited Accident or Illness Lost Income DeathPermanentUnlimited Medical Bills What is the most this could cost me?Unlimited 6-E-1 1 of 2

9. My Personal Financial Risk Exposures ExposureRiskHow to EvaluatePotential Loss Liability Liability for injuries to other people or damages to their property What is the most this could cost me?Unlimited Property Owner- ship Damaged, destroyed lost, or stolen This will be the total dollar amount for the particular item(s) from your Personal Property Inventory (Part A) $ _______ 6-E-2 2 of 2

10. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Factors Affecting Automobile Insurance Costs Your age Make of car Marital status Do you take the car to work? If you’re a good student Gender Where you live How much you use the car Credit rating Driver’s education Driving record Type of car 6-F

11. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Auto Insurance Coverage Suggested Minimums Coverage Type Suggested Minimum Coverage Liability Medical Payments Uninsured / Underinsured Motorist $100,000 per person $300,000 per accident $100,000 per person $300,000 per accident $10,000 per person 6-G

12. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Auto Insurance Coverages A. Liability Bodily injury or property damages that you are responsible for because of an accident involving your car B. Medical Payments Medical and/or funeral expenses for you, members of your family, and other persons injured in an accident while in your vehicle. Also covers your family members as pedestrians if struck by an auto. Policy SectionWhat It Covers Suggested Minimum Coverage 6-H-1

13. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Auto Insurance Coverages Bodily Injury Your injuries caused by an uninsured, hit-and-run, or underinsured driver. Property Damages to your vehicle caused by uninsured or underinsured driver C. Underinsured and underinsured motorists Policy SectionWhat It Covers Suggested Minimum Coverage 6-H-2

14. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Comparing Costs of Auto Insurance 6-I COVERAGESLIMITS YOU WANT Company 1Company 3Company 2 A.Liability 1.Bodily Injury 2.Property Damage B. Medical Payments C. Uninsured & Underinsured Motorists $ ____ per person $ ____ per accident A.Damage to your car 1.Collision 2.Other than collision loss (comprehensive) $ ____ per person $ ____ amount $ ____ Deductible

15. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure How to Save Money on Insurance Shop at least three places; compare rates and policies; ask about discounts and special rates.Shop at least three places; compare rates and policies; ask about discounts and special rates. Read sources of information such as Consumer Reports ®.Read sources of information such as Consumer Reports ®. Purchase more than one type of insurance from the same company; insure all cars with the same company.Purchase more than one type of insurance from the same company; insure all cars with the same company. 6-J-1 1 of 3 321

16. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure How to Save Money on Insurance Choose the right car.Choose the right car. Don’t smoke.Don’t smoke. Select a higher deductible.Select a higher deductible. Carefully consider before adding riders or floaters.Carefully consider before adding riders or floaters. Have a good driving record & good grades (“B” or better).Have a good driving record & good grades (“B” or better). 6-J-2 2 of 3 321

17. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure How to Save Money on Insurance Ask about discounts. Eliminate collision and comprehensive coverage if car is older. Reduce your daily driving. Drive defensively. Avoid theft and vandalism. Avoid filing excessive claims. Keep tabs on credit. 6-J-3 3 of 3 321

18. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Other Types of Insurance Health Insurance –Pays medical bills when you or your family get sick or injured Property Insurance –Protects your “stuff” such as electronics, furniture etc Life Insurance –Provides financial support for those that depend on you if you die Disability Insurance –Protects your earnings if you cannot work for a time period (weeks to years) Liability Insurance –Protects you in case you are legally responsible for injuring someone or damaging someone’s property

19. NEFE High School Financial Planning Program Unit 6 – Your Money: Keeping it Safe and Secure Still More Types of Insurance Boat Travel Wedding Malpractice Errors and Omissions Pet Health Kidnap and Ranson Bottom line – you can insure almost anything