Common insurance terminology How to lower some insurance costs Insurance Policy What is that An insurance policy is a legal contract between a person buying insurance policyholder and an insurance company ID: 651484
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Slide1
Insurance basics
Section 22.1 ~ Objectives
Common insurance terminology
How to lower some insurance costs Slide2
Insurance Policy ~ What is that?!!
An insurance policy is a legal contract between a person buying insurance (policyholder) and an insurance company.
The buyer pays an agreed-upon amount of money to the ins. Co.
The ins. Co. agrees to pay for losses caused by such events as automobile accidents, theft, or injuries.Slide3
Insurance Policy
An insurance Policy explains:
Who is covered
Types of losses for which the company will pay
Amounts the company will pay
The cost of the insuranceSlide4
Insurance Coverage
An insurance policy describes a policyholder’s coverage
Coverage refers to losses that an insurance company agrees to cover
The amount of coverage is the actual dollar amount that will be paid by the company in case of a loss
Exclusions are losses that are not coveredSlide5
Benefit and Beneficiary
An insurance
benefit
is the money paid by an insurance co. for a loss
The
beneficiary
is the person, usually the policyholder, to whom the benefit is paidSlide6
Premiums
A
premium
is the amount of money a policyholder pays for insurance
They can usually be paid in installments or one time (usually a discount)Slide7
Deductables
A
deductible
is the portion of the cost of a loss that an insurance policyholder pays before the insurance pays the remaining cost
The higher the deductible, the lower the cost of your premiums Slide8
Kinds of Insurance
You can insure almost anything!
Professional dancers and models have their legs insured……….
Jennifer Lopez has an insurance policy for her butt! 27 millionSlide9
Other Kinds of Insurance
Automobile Insurance
Health Insurance
Dental Insurance
Homeowner’s Insurance
Renter’s Insurance
Cell Phone
List goes on…………..Slide10
Government Insurance Programs
Include:
Unemployment
Workers’ compensation
Medicare
MedicaidSlide11
Holding down insurance costs(?)
A few tips………….
Know the type you want/need
Shop Around for coverage and costs
Ask about different premium costs w/different deductibles
Don’t buy more coverage then you need, or less then you needSlide12
Holding down insurance
costs
The craziness of it is……………
Insurance companies are less willing to insure you if they believe you are more likely to use the insurance
Young drivers & people with poor driving records pay high premiums (25)
People with poor health habits have a hard time finding affordable insurance.Slide13
22.2 Home and Auto Insurance
Objectives
Why it’s important to own home insurance
The five types of Auto insurance
What factors influence auto insurance premiums
Basic knowledge of how insurance works, and why you need it, will help (and protect) you throughout your lifeSlide14
Home Insurance
Renters insurance covers your belongings up to a set amount, minus your deductible
Homeowners protects your house and its contents against losses due to fire and theft
Supplemental insurance is usually needed to cover floods and earthquakesSlide15
Automobile Insurance
Most states have laws requiring drivers to have insurance
~Types of Insurance~
The types of auto insurance coverage are:
Liability Insurance
Medical Payments Insurance
Collision Insurance
Comprehensive insurance
Uninsured Motorist CoverageSlide16
Liability Insurance
Liability insurance
is insurance that covers damages or injury for which you are responsible
It covers damage to the other car but doesn’t cover your injuries or damage to your car Slide17
Medical Payments Insurance
Covers your medical expenses and the medical payments of your passengers
Many policies will only cover up to $5,000 per
per
personSlide18
Collision Insurance
This covers the cost of repairs to your car that are the result from an accident
It also covers damage to your car caused by an uninsured personSlide19
Comprehensive Insurance
Insurance that covers damage to your car other than a collision; like theft, fire, or vandalismSlide20
Uninsured M
otorist Coverage
Protects you against drivers who do not have liability insurance
You may not need it if you have medical payments or health coverageSlide21
No-fault System
To limit delays and disagreements, some states have a
no-fault system
Under this system
, policyholders have their claims paid by their own insurance company, no matter who is at faultSlide22
Buying Automobile Insurance
Ways to control or lower the cost of your auto insurance premiums are to:
Shop around & get estimates from at least 3 companies
Drive carefully; take advantage of safe-driver discounts (points add a surcharge for years)
Take driver education classes
Buy only the coverage you need
Raise your deductibles
Take advantage of insurance discounts