1 / 15

Understanding Insurance Basics: Auto, Home, Life, and Health Coverage

This overview provides essential insights into how various types of insurance work, including auto, home, life, and health coverage. Understand the role of risk factors like age, occupation, and location that influence premiums. Learn about insurable interests, claims, and the pool of collected funds used to indemnify losses. Delve into auto insurance specifics such as liability, collision, and comprehensive coverage. Explore health insurance, life insurance types, and their significant costs. This guide serves to educate individuals about protecting their assets and loved ones.

callum
Télécharger la présentation

Understanding Insurance Basics: Auto, Home, Life, and Health Coverage

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INSURANCE Overview Auto – Home – Life – Health

  2. How ALL insurance Works? Based on RISK FACTORS • age (auto, life, health) • occupation (life) • past history (driving) • location (city vs suburbs: zip code) • company (company experience)  Insurance Companies are business

  3. Factors: • Concept: • INSURABLE INTEREST • Suffer a loss • Your auto, life, home, property, health • GREATER the risk = higher premiums • POOL: • $$ collected from premium + investments • INDEMNIFY: • Claims paid from the pool of money

  4. AUTO • Protection for auto owners: • Cost: Premiums • Model: style, and age • Classification: sex, age, marital status, driving record • Location: city - suburban • Distance to work or school College – Waiver (

  5. Auto Coverage: 6 Portions Liability(required by Law) $$ Most Expensive Personal – physical injury to others Property – damage to other property (car) Collision – repairs to your auto Comprehensive – damage to your car from other sources Medical–you and others in the auto (may not be necessary) Uninsured/Underinsured motorist – injurer by other who are unable to pay Optional: towing, emergency service

  6. Auto: Policy Coverage DEDUCTABLES: MINIMAL $250.00 / HIGHER Higher deductible = Lower premium Required for collision and comprehensive Example: $1400.00 damage to your auto: accident or comprehensive - 500.00 deductible (You Pay 1st) = 900.00 from insurance Coverage is stated on policy 50/300/700 Liability (stated in thousands) 50,000 property 300,000 injury to 1 person 700,000 injury of 2 or more (share)

  7. WWW.KBB.COM • VALUE OF AUTOS

  8. WWW.MSN.COM • CLICK - AUTOS

  9. Liability: Cost Factor

  10. Fire & Lightning Theft Windstorm Riot Vehicles Smoke Vandalism Explosion Property: BasicPerils of College?

  11. Health Insurance • Major Cost to the Family • Individual or Group Policy (Always buy Group) • 10 -18% per year increase

  12. PolicyBasic – Medical, Hospital, and Surgical • Hospital Cost – $1000 -1500 per day: room, board and drugs • Surgical – (Set prices for operations) • Physicians – doctors but not surgical (office visits, etc) • Major Medical – catastrophic illness, beyond normal $ 2 Million Co-insurance 80% 20% up to ceiling • Dental/Vision – glass and general dental (not braces) or surgical • Vision - 1pair of glasses per year

  13. Life Insurance • Goal: Mortality Table 0 – 99 years • Protection for family • Savings – Builds for the future • Flexible: changes through life cycle • Basis: • Risk: Gender, Age, Occupation, Smoke

  14. Policies: 2 Forms-Term & Permanent • Term – cheapest (limited number of years 5) • Permanent – Until Death • Savings + Death Benefit • Straight Life – Pay until death • Limited Life –Short pay period 20 years-higher premium • Endowment– most expensive, cash when living

More Related