7.10.1.

L1 Note taking guide

Types of Insurance Essentials Note-Taking Guide

Jacob Mansell Name__________________
39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:
the consumer who purchased the policy

4-11-14 Date__________________

5th period Class _________________

Risk:

Insurance:

Policy:

uncertainty about a situations outcome

an arrangement between an individual and an insurer to protect the individual against risk

a contract between the individual and the insurer

Premium:
the fee paid to the insurer to be covered under the specified terms

Deductible:
the amount paid out of pocket before the insurance pays

AUTOMOBILE INSURANCE Liability Medical payment Uninsured/under insured Physical damage

covers damages caused to the vehicle

covers the damages to other people

Types

covers injuries sustained by the driver

covers injury or damage to the driver, passengers, or the vehicle caused by a driver

Collision

covers a collision with other obstacles

Comprehensive
covers all physical damage losses except collision and other specified losses

Required by law Who/ what is covered

minimum amount of insurance

coverage
covers injuries sustained by the driver
covers injury or damage to the driver, passengers, or the vehicle

damages caused to other people

covers damages caused to the vehicle

Family Economics & Financial Education October 2010 The Essentials to Take Charge of Your Finances Types of Insurance Page 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.10.1.L1 Note taking guide

HEALTH INSURANCE Why is it important to purchase health insurance? Provides protection against: May cover: How may health insurance be purchased?

Large medical expenses could wipe out an individuals savings

financial losses resulting from injury, illness, and disability

hospital, surgical, dental, vision, long-term care, prescription, and other major expenditures

by an individual or through their employer

Children may stay on their parents health insurance until:
until they are 19 or while they are in college

LIFE INSURANCE Life insurance: Beneficiary: Dependent: Who should purchase life insurance?

a contract between an insurer and policyholder

the recipient of any policy proceeds if the insured person dies

a person who relies on someone else financially

someone that is married or that has children

DISABILITY INSURANCE Disability insurance: If needed, how much does disability insurance pay an individual?

replaces a portion of ones income

60% 70% of ones full time wage

HOMEOWNERS AND R ENTERS INSURANCE Peril: an event which can cause a financial loss Property insurance:
protects the insured from financial losses

Renters insurance:

protects the insured from loss to the contents of the dwelling

Why is it important for a renter to purchase renters insurance?

Homeowners insurance:

combines property and liability insurance

just incase a fire wipes out their house

Liability insurance:
protects the insured party from being held liable for others financial losses

Covers: major perils, provides liability protection, and provides for additional living expenses

Family Economics & Financial Education October 2010 The Essentials to Take Charge of Your Finances Types of Insurance Page 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona