Insurance Policies

Insurance policies

There are many forms of insurance that you may choose to purchase in the future:• Homeowners• Renters• Automobile• Health• Disability• Life

Home Owners InsurancePays for damages to your real estate property.• Natural disasters• Uninsured Motorist Damages• TheftAlso pays for injuries that others suffer while on your property.• Neighbor’s child falls off the jungle gym and breaks

their arm.• Stranger runs across your lawn and trips over the

rake breaking their clavicle.

Renter’s Insurance

Similar to home owner’s insurance only its for people who are renting not buying.

• Natural disasters• Uninsured Motorist Damages• Theft

Automobile InsuranceComprehensive Auto Insurance• Pays for the damages to your vehicle and the vehicle of

another motorist that you have damaged.• Also covers the medical bills associated with an

accident.

Liability Insurance• Pays for the damages that you cause in an auto

accident. • Also covers the medical bills associated with an

accident.• DOES NOT cover the damages to your own car.

Health Insurance

Designed to pay for medical costs.• Coverages come in many different plans.• Designed to assist with regular medical maintenance

costs, emergency costs, as well as pharmaceutical costs.

Disability Insurance

Provides income to people in case they become injured or unable to work for medical reasons.

• Short Term Disability-Provides income for short periods of time necessary for quick recovery time.

• Long Term Disability- Provides income for illnesses or injuries that take a greater time to address.

Life Insurance

Provides money to the beneficiaries when the insured person dies.

• More expensive the older a person is.• Higher premiums will purchase larger insurance

payouts.

Costs and benefits of InsuranceAll insurance policies include a Premium. • The premium is the relatively small amount of money

that the insured pays in the present to protect their assets in the future.

• In some cases, people pay auto or home insurance premiums for years and never file a claim.

• This is a cost one incurs to make sure they are protected when an accident or natural disaster occurs.

Costs and benefits of InsuranceMost insurance policies include a Deductible. • This stipulates the amount of money (in

addition to the premium) the insured must pay when a claim is filed with the insurance company.

• Higher premiums mean Lower deductibles and Lower premiums mean Higher deductibles.

Costs and benefits of InsurancePurchasing insurance involves shared liability

between the insurer(company) and the insured(individual).

• This means that the insurance company assumes a pre-determined amount of financial liability for a claim that the insured might file.

• The insurance company is obligated to pay for the loss since the insured has paid premiums for the financial protection.

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13. Bonds14. Stocks15. Mutual Funds16. Premium17. Deductible18. Shared Liability19. Homeowner’s Insurance20. Renter’s Insurance21. Comprehensive Insurance22. Liability Insurance23. Health Insurance24.Life Insurance25. Disability Insurance