7.10.1.

L1 Note taking guide

Types of Insurance Essentials Note-Taking Guide

Dylan Smith Name__________________
39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:

4/10/2014 Date__________________

5th Class _________________

Risk:

Insurance:
an arrangement between an individual consumer and an insurer insurance company to protect the individual against risk.

Policy:
a contract between the individual and the insurer specifying the terms of the insurance arrangements.

the consumer who purchased the policy

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

uncertainty about a situations outcome

Deductible:
the amount paid out of 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 damage 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 passengers regardless of fault

covers injury or damage to the driver,passengers ,or the vehicle caused by a driver with insufficient insurance
no
covers the injury of damage to driver or passengers

Collision
covers a collision with another object, car, or rollover
no

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

Required by law Who/ what is covered

minimum amount

no
you, your passengers, or family members on foot or while riding a bike

the people you get in a wreck with

covers the veiclela

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 individual's savings

financial losses resulting from injury , illness , and disibility

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:

19
LIFE INSURANCE Life insurance: Beneficiary: Dependent: Who should purchase life insurance?
people who have a dependent spouse,children,an aging or disabled dependent relative, or are business owners

a contract between an the receipt of any insurer and policy proceeds if the policyholder specifying insured person dies a sum to be paid to a beneficiary upon the insured's death.

a person who relies on someone else financially

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

replaces a portion of one's income if they become unable to work due to illness or injury

it pays between 60% or 70%

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 posessions

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

it covers major perils, provides liability protection, and provides for additional living expenses

Liability insurance:
protects the insured party from being held liable for other's financial losses

Covers: it 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