chapter 22 buying insurancesucceeding in the world of work 22.1 insurance basics section opener /...
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Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
SECTION OPENER / CLOSERINSERT BOOK COVER ART
Section 22.1Section 22.1Insurance BasicsInsurance Basics
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Insurance PolicyInsurance Policy Insurance PolicyInsurance Policy
When you purchase insurance, you pay When you purchase insurance, you pay an agreed-upon amount of money to an an agreed-upon amount of money to an insurance company.insurance company.
The company agrees to pay for losses The company agrees to pay for losses caused by such events as automobile caused by such events as automobile accidents, theft, or injuries.accidents, theft, or injuries.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Insurance PolicyInsurance Policy Insurance PolicyInsurance Policy
An An iinsurance policynsurance policy is a legal contract is a legal contract between a person buying insurance and between a person buying insurance and an insurance company.an insurance company.
The person buying insurance is the The person buying insurance is the policyholderpolicyholder..
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Insurance PolicyInsurance Policy Insurance PolicyInsurance Policy
An insurance policy explains:An insurance policy explains:
who is covered,who is covered,types of losses for which the company types of losses for which the company will pay,will pay,amounts the company will pay, andamounts the company will pay, andthe cost of the insurance.the cost of the insurance.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Insurance CoverageInsurance Coverage Insurance CoverageInsurance Coverage An insurance policy describes a An insurance policy describes a policyholder’s coverage.policyholder’s coverage.
Insurance coverage refers to losses that an Insurance coverage refers to losses that an insurance company agrees to cover.insurance company agrees to cover.
ExclusionsExclusions are losses that are not covered. are losses that are not covered.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Benefit and BeneficiaryBenefit and Beneficiary Benefit and BeneficiaryBenefit and Beneficiary
An insurance An insurance benefitbenefit is the money paid is the money paid by an insurance company for a loss.by an insurance company for a loss.
The The beneficiarybeneficiary is the person, usually is the person, usually the policyholder, to whom the benefitthe policyholder, to whom the benefitis paid.is paid.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
PremiumsPremiums PremiumsPremiums
A A ppremiumremium is the amount of money a is the amount of money a policyholder pays for insurance.policyholder pays for insurance.
You can usually pay premiums in You can usually pay premiums in installments.installments.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
DeductiblesDeductibles DeductiblesDeductibles
A A ddeductibleeductible is the portion of the cost is the portion of the costof a loss that an insurance policyholder of a loss that an insurance policyholder pays before the insurance company pays before the insurance company pays the remaining cost.pays the remaining cost.
The higher the deductible, the lower the The higher the deductible, the lower the cost of your premiums.cost of your premiums.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Kinds of InsuranceKinds of Insurance Kinds of InsuranceKinds of Insurance
Kinds of insurance include:Kinds of insurance include:
automobile insurance,automobile insurance,health insurance,health insurance,dental insurance, anddental insurance, andhomeowner’s insurance.homeowner’s insurance.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Government Insurance ProgramsGovernment Insurance Programs Government Insurance ProgramsGovernment Insurance Programs
Government insurance programs Government insurance programs include:include:
unemployment insurance,unemployment insurance,workers’ compensation,workers’ compensation,Medicare, and Medicare, and Medicaid.Medicaid.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Holding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance Costs
Some tips for controlling insurance costs Some tips for controlling insurance costs are:are:
Know what type of insurance you Know what type of insurance you want.want.Call several insurance agencies in Call several insurance agencies in your area to ask about coverage and your area to ask about coverage and costs.costs.
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Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Holding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance Costs
Ask about different premium costs Ask about different premium costs with different deductibles.with different deductibles.Don’t buy more coverage that you Don’t buy more coverage that you need or less coverage than you need.need or less coverage than you need.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Holding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance Costs
Insurance companies are less willing to Insurance companies are less willing to insure you if they believe you are more insure you if they believe you are more likely to use the insurance.likely to use the insurance.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
Holding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance CostsHolding Down Insurance Costs
Young drivers and people with poor Young drivers and people with poor driving records often pay high premiums.driving records often pay high premiums.
People with poor health habits have People with poor health habits have difficulty finding affordable life insurance.difficulty finding affordable life insurance.
Chapter 22 • Buying Insurance Succeeding in the World of Work
22.1 Insurance BasicsInsurance Basics
SECTION OPENER / CLOSERINSERT BOOK COVER ART
End of Section 22.1End of Section 22.1Insurance BasicsInsurance Basics