7.10.1.

L1 Note taking guide

Types of Insurance Essentials Note-Taking Guide

Tyler Boyd Name__________________
39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:

4/10/14 Date__________________
Career Prep. Class _________________

Risk:

Insurance:

Policy:

The consumer who purchased the policy.

Premium:
Fee paid to the insurer to be covered under the specified terms.

Uncertainty about a situation's outcome.

Arrangement between an individual and a insurer to protect the individual against risks.

A contract between the individual and the insurer specifying terms of insurance arrangements.

Deductible:
The amount paid out of the pocket by the policy holder for the initial portion of a loss before the insurance coverage begins.

AUTOMOBILE INSURANCE Liability Medical payment Uninsured/under insured Physical damage

Covers damages caused to the vehicle.

Types

Covers the insured if injuries or damages are caused to other people or their property.

Covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault.

Covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance.
No
Everyone in the accident. Including the vehicle.

Collision
Covers a collision with another object, car, or from a rollover.

Comprehensive
Covers all physical damage losses except collision and other specified losses.

Required by law Who/ what is covered

Yes
The other person's belongings/themselve s.

No

No

Passengers and/or pedestrians.

Collisions and physical damage.

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?

To protect yourself of large medical expenses wiping your savings out.

Financial losses resulting from injury, illness, and disability.

Provide coverage for emergency or routine medical expenses. (Hospital, surgical, dental, vision, long-term care, prescription, and other major expenditures).

By individual or through their employer.

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

LIFE INSURANCE Life insurance:

A contract between an insurer and policyholder specifying a sum to be paid to a beneficiary upon the insureds death.

Beneficiary:

Dependent:

The recipient of any policy proceeds if the insured person dies.

A person who relies on someone else financially.

Who should purchase life insurance?

People who have a dependent spouse, dependent children, an aging or disabled dependent relative, or are business owners.

DISABILITY INSURANCE Disability insurance:

Replaces a portion of ones income if they become unable to work due to illness or injury.

If needed, how much does disability insurance pay an individual?

The insurance typically pays between 60% 70% of ones full time wage.

HOMEOWNERS AND R ENTERS INSURANCE Peril:

An event which can cause a financial loss like fire, falling trees, lightning, and others.

Renters insurance:
Protects the insured from loss to the contents of the dwelling rather than the dwelling itself.

Homeowners insurance:

Combines property and liability insurance into one policy to protect a home from damage costs due to perils.

Property insurance:
Protects the insured from financial losses due to destruction or damage to property or possessions.

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

Renters insurance is necessary because the landlords insurance policy on the dwelling does not cover the renters personal possessions.

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 if the dwelling is rendered uninhabitable by one of the covered perils.

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