INSURANCE Overview

Auto – Home – Life – Health

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

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

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 (

Auto Coverage: 6 Portions

Liability (required by Law) $$ Most ExpensivePersonal – physical injury to othersProperty – damage to other property (car)

Collision – repairs to your autoComprehensive – damage to your car from other

sourcesMedical –you and others in the auto

(may not be necessary)Uninsured/Underinsured motorist – injurer by other

who are unable to payOptional: towing, emergency service

Auto: Policy CoverageDEDUCTABLES: MINIMAL $250.00 / HIGHER Higher deductible = Lower premium

Required for collision and comprehensiveExample: $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 property300,000 injury to 1 person700,000 injury of 2 or more (share)

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VALUE OF AUTOS

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CLICK - AUTOS

Liability: Cost Factor

Property: BasicPerils of College? Fire & Lightning Theft Windstorm Riot

Vehicles Smoke Vandalism Explosion

Health Insurance

Major Cost to the Family Individual or Group Policy

(Always buy Group) 10 -18% per year increase

Policy Basic – 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

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

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