7.10.1.

L1 Note taking guide

Types of Insurance Essentials Note-Taking Guide

Luiz Hernandez Name__________________
39 Total Points Earned Total Points Possible Percentage
INSURANCE Policyholder:

4-10-14 Date__________________
Class _________________

Risk:

Insurance:

Policy:

The consumer who bought the policy.

Premium:
Is the fee to the insurer to be covered under the specified terms.

Is uncertainty about a situation"s outcome.

Is an arrangement between an individual and an insurer for protection.

Is a contract between the individual and insurer specifying the terms of the insurance.

Deductible:
Is the amount paid out of pocket by the policy holder to began the coverage.

AUTOMOBILE INSURANCE Liability Medical payment Uninsured/under insured Physical damage

Covers damages 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.

Covers injury or damage to the driver, passengers, or the vehicle.

Collision

Covers a collision with another object or car.

Optional

Comprehensive
Covers all physical damage losses except collision and other specified losses.

Required by law Who/ what is covered

Yes

No

No

The other driver

All and the other driver

The insurer

The insurer

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 provides protection .

Against financial losses.

Hospital, surgery, dental, vision, long-term carer, prescription.

By the individual or the employer.

Children may stay on their parents health insurance until:

19
LIFE INSURANCE Life insurance: Beneficiary: Dependent: Who should purchase life insurance?

Is a sum paid when the policy holder passes.

The recipient of any policy if the insurer dies.

A person who relies on someone.

People who have dependants

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

Replaces a portion of one's income if they are unable to work.

It pays about 60%-70%.

HOMEOWNERS AND R ENTERS INSURANCE Peril: Renters insurance:

An event which causes loss.

Homeowners insurance:

Projects insurer from loss of property.

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

Is property and liability insurance to cover a home form damages.

Property insurance:

Protects property form loss.

Liability insurance:
Protects form liable form other financial loss.

To project there stuff form loss.

Covers:

The items they own.

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