INSURANCE 101INSURANCE 101

Paul Olmstead Paul Olmstead

Farmers InsuranceFarmers Insurance

What is insurance?What is insurance?

Insurance is... ”money”.Insurance is... ”money”.

How much money is in your How much money is in your pocketpocket today? today?

If you don’t have enough money when an If you don’t have enough money when an accident is your fault, , they can garnish accident is your fault, , they can garnish

your wages until the debt is paid.your wages until the debt is paid.

What is Auto Insurance?What is Auto Insurance?

Do you understand what these Do you understand what these terms mean?terms mean?

BIPD 150/300/100BIPD 150/300/100

UM 150/300UM 150/300

UIM 150/300UIM 150/300

Medical 5000Medical 5000

Comprehensive 750Comprehensive 750

Collision 750Collision 750

Deductible Out of pocketDeductible Out of pocket

Loss of UseLoss of Use

What affects your premiumWhat affects your premium

Risk Assessment ScoreRisk Assessment ScoreLate Payments Late Payments Length of credit historyLength of credit historyYour vehicleYour vehicleYour driving recordYour driving recordWhere you liveWhere you liveMiles per yearMiles per yearDiscountsDiscountsMultiple policiesMultiple policies

What should you do in an What should you do in an accident?accident?

R E M A I N C A L MR E M A I N C A L MCheck for injuriesCheck for injuriesKnow your locationKnow your locationCall for helpCall for helpGive the police as much information as you canGive the police as much information as you canWrite down as much information as you canWrite down as much information as you can– Other driver’s nameOther driver’s name– License plate numberLicense plate number– Year & make of their vehicleYear & make of their vehicle– Insurance company name, coverage and addressInsurance company name, coverage and address– Names & addresses of any witnessesNames & addresses of any witnesses– Ask for the police report number, remember to get the police Ask for the police report number, remember to get the police

report. You may need it in the futurereport. You may need it in the future– Call your insurance company Call your insurance company – Draw a diagram of the accident while its fresh in your memoryDraw a diagram of the accident while its fresh in your memory– Take pictures with your cell phoneTake pictures with your cell phone

What is Renter’s Insurance?What is Renter’s Insurance?

Do you know…Do you know…

Your landlord’s insurance does not cover Your landlord’s insurance does not cover your personal property your personal property

You should obtain renters insurance You should obtain renters insurance before you move inbefore you move in

What is Actual cash value vs. replacement What is Actual cash value vs. replacement value?value?

Do you need riders for jewelry, etc?Do you need riders for jewelry, etc?

What is Life Insurance?What is Life Insurance?

Life Insurance ConsiderationsLife Insurance Considerations

How much life insurance do you need?How much life insurance do you need?

How much does the average funeral cost?How much does the average funeral cost?

Do you qualify?Do you qualify?

How much do you qualify for?How much do you qualify for?

Who are your beneficiaries?Who are your beneficiaries?

When should you review your Life When should you review your Life Insurance?Insurance?

Basics of life insuranceBasics of life insurance

Premiums are based on age and healthPremiums are based on age and health

Premiums for females are less than malesPremiums for females are less than males

Occupation or hobbies can affect life insuranceOccupation or hobbies can affect life insurance

Term, Universal Life, Whole Life, Variable LifeTerm, Universal Life, Whole Life, Variable Life

Death Benefit of Life insurance can be increasedDeath Benefit of Life insurance can be increased– 25, 28, 31, 37 & 4025, 28, 31, 37 & 40– College graduation, marriage, birth or adoption of a College graduation, marriage, birth or adoption of a

child or purchase of a home as a primary residencechild or purchase of a home as a primary residence

How much life insurance do you How much life insurance do you need?need?

Medical BillsMedical Bills

MortgageMortgage

Other Financial ObligationsOther Financial Obligations

Single/Married/Children Single/Married/Children

Funeral expenses $10,000-$15,000Funeral expenses $10,000-$15,000

Cremation expenses $4,000-$6,000Cremation expenses $4,000-$6,000

What makes an individual unable to What makes an individual unable to get life insurance?get life insurance?

AIDS AIDS Alzheimer’s DiseaseAlzheimer’s DiseaseCancerCancerCirrhosis of the liverCirrhosis of the liverCongestive heart failureCongestive heart failureDiabetesDiabetesHeart diseaseHeart diseaseHepatitis “C” positiveHepatitis “C” positiveStrokeStroke

Possible DeclinesPossible Declines

AlcoholismAlcoholism

ArthritisArthritis

AsthmaAsthma

DepressionDepression

Diabetes over age 15Diabetes over age 15

EmphysemaEmphysema

Heart bypass surgeryHeart bypass surgery

Irregular heart beatIrregular heart beatHepatitis “B” & “C”Hepatitis “B” & “C”Kidney dialysisKidney dialysisNervous DisorderNervous DisorderPsychosisPsychosisSleep ApneaSleep ApneaSyphilisSyphilis

Life Insurance Pays When?Life Insurance Pays When?

Insurer receives the death certificateInsurer receives the death certificate– Suicide? Within the policy time limitsSuicide? Within the policy time limits– Murder? Was the beneficiary the cause of Murder? Was the beneficiary the cause of

death?death?– Natural causes? Any misrepresentations such Natural causes? Any misrepresentations such

as age and sex of the deceasedas age and sex of the deceased

BeneficiariesBeneficiariesBeneficiary is the individual(s) named in the policy Beneficiary is the individual(s) named in the policy

as the recipient of life insurance payment upon as the recipient of life insurance payment upon the insured’s deaththe insured’s deathOne or more individuals – not taxableOne or more individuals – not taxableTrusts – managed by trustees for the beneficiariesTrusts – managed by trustees for the beneficiariesEstates – can be taxedEstates – can be taxedCharities – cannot be contested by disgruntled heirsCharities – cannot be contested by disgruntled heirsMinorsMinors– Designate a guardianDesignate a guardian– Pay out when child is an adultPay out when child is an adult– Place proceeds in a trust to be paid at various Place proceeds in a trust to be paid at various

intervalsintervals

Policy ExclusionsPolicy Exclusions

War – Death benefit won’t be paid as a result of War – Death benefit won’t be paid as a result of warwar

Aviation – stunt pilots, crop dusters, military Aviation – stunt pilots, crop dusters, military pilots, student pilots, recreational pilots, and test pilots, student pilots, recreational pilots, and test pilotspilots

Hazardous occupations or hobbies – racers & Hazardous occupations or hobbies – racers & stunt people stunt people

Felony – death results while committing a felonyFelony – death results while committing a felony

Suicide – usually within the first two years Suicide – usually within the first two years

What is Health Insurance?What is Health Insurance?

Do You Have Health Insurance?Do You Have Health Insurance?

You may be covered under your parent’s You may be covered under your parent’s health insurance until you are 19, 24 or 25health insurance until you are 19, 24 or 25

You may be covered under your You may be covered under your employers health insuranceemployers health insurance

You may need short term an individual You may need short term an individual policy between high school and full time policy between high school and full time employmentemployment

What does health insurance coverWhat does health insurance cover

Doctor visits Doctor visits (some are after a 1 year period)(some are after a 1 year period)

Prescriptions (Deductible)Prescriptions (Deductible)

Hospitalization (Preferred Provider)Hospitalization (Preferred Provider)

Emergency care (ambulance & helicopter)Emergency care (ambulance & helicopter)

Long term care (In home care)Long term care (In home care)

Adult day careAdult day care

How Healthy Are You?How Healthy Are You?

When was your last physical?When was your last physical?

What was your blood pressure?What was your blood pressure?

What was your cholesterol count?What was your cholesterol count?

What is your height/weight ratio?What is your height/weight ratio?

How is your mental health?How is your mental health?

When was your last hospitalization?When was your last hospitalization?

Some Exclusions for Health Some Exclusions for Health InsuranceInsurance

AIDSAIDS

Alcohol AbuserAlcohol Abuser

Cirrhosis of the liverCirrhosis of the liver

Cocaine AbuserCocaine Abuser

Congestive Heart Congestive Heart FailureFailure

Coronary Artery Coronary Artery DiseaseDisease

DiabetesDiabetes

Marijuana usageMarijuana usage

Sleep ApneaSleep Apnea

Spina BifidaSpina Bifida

What can you do?What can you do?

Eat rightEat rightExerciseExerciseQuit smokingQuit smokingQuit DrinkingQuit DrinkingStay away from DrugsStay away from Drugs

Relieve your stressRelieve your stress– Listen to MusicListen to Music– DanceDance– WalkWalk– HikeHike– FishFish– BowlingBowling– Read a good bookRead a good book– Talk to a friendTalk to a friend– Get out of the houseGet out of the house

Thank you for your time and Thank you for your time and questionsquestions

If you have any other questions If you have any other questions that you want answered please that you want answered please take one of my business cards.take one of my business cards.I will be happy to speak or meet I will be happy to speak or meet with you at your convenience. with you at your convenience.

(262) 285-3599 Office(262) 285-3599 Office(920) 254-8736 Cell(920) 254-8736 Cell

Paul Olmstead, Agent/PartnerPaul Olmstead, Agent/PartnerFarmers InsuranceFarmers Insurance