7.10.1.

L1 Note taking guide

Types of Insurance Essentials Note-Taking Guide

Payton Name__________________
39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:
Person who purchased the contract or 'policy'.

10/4/14 Date__________________
Career Prep Class _________________

Risk:

Insurance:

Policy:
Contract between the individual and the insurer varifying the terms of the insurance arrangements.

When you are not sure about a situations outcome.

Arrangement between individual and insurer.

Premium:

Money paid to ensure the specified terms.

Deductible:

Pocket money paid by policy holder.

AUTOMOBILE INSURANCE Liability Medical payment Uninsured/under insured Physical damage

Covers injuries or damage caused to other people.

Types

Covers injuries sustained by the driver of insured vehicle no matter whose fault it was.

Vehicles damage
Collision Comprehensive

Covers drivers, passenger, or vehicle when it is driver with unsufficient insurance's fault.

Collision with another object

all physical damage losses

Required by law Who/ what is covered

yes

no

no

no

Injured or damaged person.

Driver of insured vehicle

Driver, passenger, or vehicle

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?

It gives you coverage for emergency or routine medical expenses.

Financial losses from injury or illness.

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

By individual or through their employer

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

LIFE INSURANCE Life insurance:

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

Beneficiary:

Dependent:

Recipient of any policy if insured person dies.

Person who depends on someone else financially.

Who should purchase life insurance?

Person with dependant spouse or dependant children.

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

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

60-70%

HOMEOWNERS AND R ENTERS INSURANCE Peril:

Something that causes a financial loss. Ex: fire.

Renters insurance:

Keeps insured people from losing contents of dwelling.

Why is it important for a renter to purchase renters insurance?
landlords insurance policy on the dwelling does not cover the renters personal possessions

Homeowners insurance:

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

Property insurance:
Protects the insured from financial loss due to tearing down or damaging to property or possessions

Liability insurance:
Keeps the insured party from being held liable for others financial loss

Covers:

Major 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