7.10.1.

L1 Note taking guide

Types of Insurance Essentials Note-Taking Guide

Spencer Kemble Name__________________
39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:

4/10/14 Date__________________

5th period Class _________________

Risk:

Insurance:

Policy:

The person who purchased the policy.

Premium:
Premium is what you pay to the insurer to be covered by their insurance.

Risk is not being sure about how a situation will turn out.

Insurance is an agreement with an insurer that protects you against any risks.

A policy is the terms of the insurance between you and the insurer.

Deductible:
The money paid by the policy holder for the initial portion of a loss before you begin with the insurance.

AUTOMOBILE INSURANCE Liability Medical payment Uninsured/under insured Physical damage

Covers damages that are caused to the vehicles.

Types

Covers the insured person if injuries or damages were caused to other people.

Covers injuries of the driver or passengers in the insured vehicle.

Covers injury or damage to drivers, passengers, or vehicles caused by a driver with out sufficient insurance.
no
Injury or damage to the driver, passenger, or vehicle.

Collision

Covers when collided with another object.

no

Comprehensive
Covers physical damage losses except collision.

Required by law Who/ what is covered

yes

no
Covers injuries of driver who is insured, and passengers.

Covers the insured.

Covers damages made to 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?

Health care costs are very expensive.

Losses of money due to injury, illness, and disability.

Hospital, surgical, dental, vision, long-term care, or prescription.

It may be purchased through your employer.

Children may stay on their parents health insurance until:

19 or while in college
LIFE INSURANCE Life insurance: Beneficiary: Dependent: Who should purchase life insurance?

Specifies a sum that is paid to the beneficiary once the insured dies.

Receives policy proceeds when the insured person dies.

Someone who relies on someone else financially.

Someone who has dependents.

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

Insures when someone is unable to work or make money.

60% to 70%

HOMEOWNERS AND R ENTERS INSURANCE Peril: Renters insurance:

Something that causes financial loss.

Homeowners insurance:

Protects from losses of contents of the dwelling of the insured.

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

Is property and liability insurance combined to protect a home from damage.

Property insurance:
Protects from losses due to destruction or damage to your property.

The landlords insurance does not cover the renters property.

Covers:

Liability insurance:
Protects the insured for being responsible for others losses.

It covers major perils, and provides liability protection.

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