7.10.1.
L1 Note taking guide
Types of Insurance Essentials Note-Taking Guide
Sidney Stewart Name__________________
39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:
4-10-14 Date__________________
CP- 5th Class _________________
Risk:
Insurance:
Policy:
contract between the individual and the insurer specifying the terms of the insurance arrangement
consumer who purchased the policy
Premium:
fee paid to the insurer to be covered under the specific terms
uncertainty about a situation's outcome
arrangement between an individual and an insurer to protect the individual against risk
Deductible:
amount paid out of pocket by the policy holder for the initial portion of a loss before the insurance coverage begins
AUTOMOBILE INSURANCE Liability
covers the insured if injuries or damages are caused to other people or their property; minimum amount of insurance required by law for automobiles
Medical payment
covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault; covers injured family members injured as passengers in any car or if they are injured while on a bicycle or as a pedestrian
Uninsured/under insured
Physical damage
covers damages caused to the vehicle
Types
covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance
no
damages and injuries or the driver, passengers, or vehicle caused by an insufficient insurance
Collision
covers a collision with another object, vehicle, or from a rollover
Comprehensive
covers all physical damage losses except collision and other specified losses
Required by law Who/ what is covered
yes
those who are insured and damages
no
the driver of the insured vehicle or family members of the person insured and damages
no
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?
to prevent an individual from having his/her savings wiped out
financial losses resulting from injury, illness, and disability
emergency or routine medical expenses
by an 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: Beneficiary: Dependent: Who should purchase life insurance?
contract between an the recipient of any insurer and policy proceeds if the policyholder specifying injured person dies a sum to be paid to a beneficiary upon the insured's death
person who relies on someone else financially
people with dependents or business owners
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
60-70% of one's full time wage
HOMEOWNERS AND R ENTERS INSURANCE Peril: Renters insurance:
protects the insured from loss to the contents of the dwelling rather than the dwelling itself
an event which can cause a financial loss
Homeowners insurance:
combines property and liability insurance into one policy to protect a home from damage cost due to perils
Property insurance:
protects the insured from financial losses due to the destruction or damage to property or possessions
Why is it important for a renter to purchase renters insurance?
the landlord's policy on the dwelling does not cover the renter's personal possessions; renter's insurance provides liability protection and covers major perils
Liability insurance:
protects the insured party from being liable for other's financial losses
Covers:
renter's insurance provides liability protection and 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
