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Risk, Responsibility, Reality

This video clip provides an overview of insurance policies Risk, Responsibility, Reality Video Clip

http://www.griffithfoundation.org/auto-insurance/autoinsurance-30-minutes/

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 1 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

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Insurance
Take Charge of Your Finances 1.10.1.G1

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Risk

Risk is the uncertainty about a situations outcome

This can be an unpredictable event which leads to loss or damage

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 3 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

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Insurance Terminology

Insurance is an arrangement between an individual (consumer) and an insurer (insurance company) to protect the individual against risk A policy is a contract between the individual and the insurer specifying the terms of the insurance arrangements

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 4 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

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Insurance Terminology

A policyholder is a consumer who purchases the policy A premium is a fee paid to the insurer to be covered under specified terms A deductible is the amount paid out of pocket by the policy holder for the initial portion of a loss before the insurance coverage begins
Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 5 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

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Types of Insurance

Types of insurance can include:

Automobile Health Life Disability Homeowners/Renters

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 6 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

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Automobile Insurance

Automobile Insurance is an arrangement between an individual (consumer) and insurer (insurance company) to protect the individual against risk from automobile accidents

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 7 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

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Automobile Insurance Types

There are four types of coverage for Automobile Insurance:

Liability insurance Medical payment insurance Uninsured or underinsured motorists insurance Physical damage insurance

Collision Comprehensive
Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 8 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

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Liability Insurance

Liability Insurance covers the insured if injuries or damages are caused to other people or their property

It is the minimum amount of insurance required by law for automobiles

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 9 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

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Medical Payment insurance

Medical Payment Insurance covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault

It also covers family members injured as passengers or if injured as a pedestrian

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 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

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Uninsured motorists insurance

Uninsured or Underinsured Motorists Insurance covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 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

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Physical damage insurance

Physical Damage Insurance covers damages caused to the vehicle

Collision covers a collision with another object, car, or from a rollover Comprehensive covers all physical damage losses except collision and other specified losses

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 12 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

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Health Insurance

In 2008 there were more than 43 million Americans or 14 percent of the population without health insurance
(http://www.cdc.gov/nchs/hdi.htm)

Health insurance provides protection against financial losses resulting from injury, illness, and disability

Health insurance may cover hospital, surgical, dental, vision, longterm care, prescription, or other major expenditures Health insurance may be purchased by the individual or through their employer

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 13 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

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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 The contract is a policy which states the amount to be paid to the beneficiary upon the insured persons death

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 14 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

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Life Insurance

A beneficiary is the recipient of any policy proceeds if the insured person dies A dependent is a person who relies on someone else financially

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 15 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

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What Covers This Risk?

You hit and injure a pedestrian in a crosswalk

Automobile!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 16 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

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What Covers This Risk?

After losing her husband to a heart attack, the wife is left alone to care for 2 children

Life!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 17 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

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What Covers This Risk?

You need a cast after breaking an ankle while rollerblading

Health!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 18 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

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Disability Insurance

Disability Insurance replaces a portion of ones income if they become unable to work due to illness or injury

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 19 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

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Homeowners/Renters Insurance

Homeowners Insurance combines property and liability insurance into one policy to protect a home from damage costs due to perils. A peril is an event which can cause a financial loss like fire, falling trees, lightning and others

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 20 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

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Property Insurance

Property Insurance protects the insured from financial losses due to destruction or damage to property or possessions Liability Insurance protects the insured party from being held liable for others financial losses Homeowners insurance should cover the replacement cost which will pay to rebuild the home if it is completely destroyed
Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 21 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

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Renters Insurance

Renters Insurance protects the insured from loss of the contents of the dwelling rather than the dwelling itself Renters insurance may be provided by a parent or guardian while an individual is still a full time student or under the age of 18

However, each policy is different and should be inspected by the policy holder
Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 22 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

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What Covers This Risk?

Your apartment is broken into and your computer is stolen

Renters!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 23 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

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What Covers This Risk?

You are injured in an automobile accident and are unable to work for 2 months

Disability!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 24 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

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What Covers This Risk?

Your garage was destroyed by a fire which started by a lightning bolt hitting your home

Homeowners!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 25 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

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Conclusion

Review the following terms and concepts:

Risk Insurance Policy Policyholder Premium Deductible Types of Insurance

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 26 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

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What Covers This Risk?

Sick at home from food poisoning after eating a carnival corndog

Nothing!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 27 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

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What Covers This Risk?

You have brake failure. You hit a telephone pole and cause damage to the front of the car

Automobile!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 28 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

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What Covers This Risk?

You get pulled over and receive a speeding ticket on your way to the mall

Nothing!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 29 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

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What Covers This Risk?

A daughter, who is financially responsible for her mothers nursing home bills, dies from an undetected heart defect Life!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 30 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

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What Covers This Risk?

A doctor diagnoses a child with tonsillitis during a visit to a clinic

Health!

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 31 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

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KWL Chart

Reference the W column on your worksheet

Were there any questions you were unable to answer from the video?

Can you answer those questions now based upon the content? If so, what are the answers?

Record the new information in the L column

If not, what additional questions do you have?

Family Economics & Financial Education Updated January 2009 Insurance Unit Types of Insurance Slide 32 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