Importance of Insurance

an important tool for protecting your assets

and net worth in the event of catastrophe,
accident or health problem.
 Insurance Basics
protects your assets as well as your cash flow.

you pay a premium (a periodic payment) to the

insurance company based on your risk of filing
a claim.
Selecting an Insurance Company
consider rates, financial security, service
ratings, and licensing.
 Knowing the Terms of the
Policy declaration page
upon purchasing insurance, you will receive an
insurance policy and a Declaration Page.
It lists the name of the insured, the property
insured (with vehicles this includes the make,
the model, year, and vehicle identification
number) effective dates of coverage, coverage
time and limits, the deductible and the policy
premium amount.
 Auto Insurance:
Identify the proper insurance coverage for your
vehicle.

Determined by your credit history, age, driving

record, home location, and marital status , as
well as the make, model and types of safety
equipment in your vehicle.
Liability Auto Insurance
Covers only your legal responsibility if you are at fault in an
accident.

3 Categories:
1.Bodily injury dollar amount for one person injured in an
accident.
2. Bodily injury liability dollar amount for all people injured in
an accident.
3. Personal property liability dollar amount for one accident.
Full Coverage Auto Insurance
Comprehensive Insurance covers vehicle for the
repair of any damage not sustained as a result
of an accident.

Collision Insurance – provides coverage for

your vehicle for damages sustained in an
account.
 Homeowner’s And Renter’s
Insurance

Home- a family’s largest purchase, an asset

that hopefully grows in value, and a place of
rest and relaxation.
 Home Insurance Basics
should not cover the price of the land, only the
building on the land.

Typical Home Owner’s Insurance covers the

dwelling, personal property, and loss of the
additional living expenses incurred.

If you have additional freestanding structures,

you may have to have additional insurance to
cover the entire value of those structures.
Insuring your Personal Property
With homeowner’s Insurance, you normally insure your
personal property (the contents of your home) as well, if you are
renting.

Renter’s Insurance Insurance Rider

Insurance that covers an addendum to your your

personal property primary coverage to in
a structure you do cover something specific.
not own.
 Home Inventory
can be a priceless document to help you remember all
that may have been lost.

a list of your lost or damaged personal property and

it’s value.
 Liability Insurance

Homeowners and renters are responsible for maintaining safe

conditions for people on or about the property. It could save
you from costly medical bills and other expenses for accidents
in your home or on your property,
 Health Insurance
The most important insurance to have on protecting both in your personal
health and assets.

The Affordable Care Act of 2010 require the most Americans be covered by health care
insurance by 2014 or pay a tax penalty.

The Affordable Care Act –

also known as Obamacare
supports discount on Terms and Cost:
government sponsored ► Premium
Health Insurance plans, ► Deductible
and expanded the ► Copayment
Medicaid Assistance
Program to include
more people.
 Medigap Policies

►Supplemental Insurance Policies

sold by private insurance  COBRA-
companies to fill “gaps” in the
Consolidation
original MediCare Plan
Coverage. Omnibus
Budget
Reconciliation
Act

►Extends Health Insurance for a

period of time after a job loss,
death, divorce or other transitiona
life event.
 Health Insurance Options
MANAGED CARE PLANS GOVERNMENT
HEALTHCARE PLANS

 Health Maintenance  Tricare formerly known as

Organizations (HMO) (CHAMPUS)
 Preferred Provider  Medicare
Organization (PPO)
 Point-Of-Service (POS)
 Disability and Long-Term
Care Insurance
Advance Derivatives:
Specific instructions you prepare in advance
with the intent to direct your medical care in the
event you are unable to do so.

Two Important Advance Derivatives:

1. Power of Attorney
2. Living Will
 Disability insurance
-gives you a portion of your income if you are unable
to work for a stated period of time.

The Premium is Dependent on:

►How much of your income you would like to replace.
►How long you want to those payments to continue.
►When the payments would start
SOCIAL SECURITY WORKER’S
COMPENSATION
 The federal government
supplements your income  If you become disabled in your
if you are disabled. workplace, you may receive
income through your state
worker’s compensation
program.
 Long-Term Care Insurance
Long-term recovery patients and the elderly
sometimes need assisted care for their living
arrangements, both at-home care and nursing-
home care can be very expensive and may extend
for a long period of time.
 Types of Life Insurance

-Term Life Insurance

-Permanent Life Insurance

-Whole Life Insurance

-Universal Life Insurance

 Personal Finance Life Stage
-Independent Life Stage

-Early Family Life Stage

-Empty Nest Life Stage

-Retirement Life Stage