15- INSURANCE - Staunton River High School

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15- INSURANCE
Life insurance
Auto insurance
Health Insurance
Home owners insurance
Life insurance
• Which companies offer
life insurance?
• http://youtu.be/UQvy_r
XPryU
• What does life
insurance cover?
• William colonial penn
• How much is it?
Life Insurance
• Term life insurance
– Term life insurance is life
insurance that offers
protection for a fixed
amount of time, usually 1,
5 or 10 years.
• Whole life insurance
– Whole life insurance is life
insurance that insures you
for your whole life and is
often called permanent, or
straight life insurance.
Life Insurance
• Premium
– the amount an individual can
be expected to pay for an
insurance policy.
• Universal life insurance
– a whole or permanent life
insurance plan that takes part
of the premium and invests it
into a tax free account.
• Beneficiary
– the person named in the
policy to receive the benefits
in the event of death.
Life Insurance
• What is the difference
between term life insurance
and whole life insurance?
• Premiums can increase if you
have term life
insurance. Whole life
insurance has a fixed premium
that will not increase.
• How might your life insurance
premiums depend upon when
you initially purchase the
policy?
• Since young people can
generally expect to pay lower
premiums than their older
counterparts, obtaining a life
insurance policy at a younger
age will usually lead to lower
premiums for the duration of
the policy.
Life Insurance
• Social Security +
Medicare Tax =
FICA TAX
• Find the FICA TAX Kara
will pay if her annual
income is $48,372.
• SS tax 6.2%
• Medicare Tax 1.45%
• FICA Tax = 7.65%
• (48,372)(0.0765)=
• $3,700.46
Life Insurance
• The longer the term rate
the increased in price for
Life Insurance
• Policy
– Contact
• Premium
– $$$
• Beneficiary
– People who benefit from
the money. Kids, relatives,
friends, etc.
Life insurance
• If Jesse wants to buy a
$75,000 10-year term
life insurance policy,
and the annual
premium rate (per
$1000 of face value) for
his age group is $2.34,
how much is Jesse’s
annual premium?
• 10 year =
• (2.34)(75)
• = 5.7%
AUTO INSURANCE
Auto Insurance
• Answer these questions:
• Is it legal to drive without insurance?
• What is the average auto insurance cost per
year?
• Name 4 different insurance companies for
auto?
• http://youtu.be/Ub-lPk95flo
Auto Insurance
• Liability
– State of being legally
obligated or responsible
• Bodily injury liability
– if a policy holder causes
injury to another, the
injury caused will be
covered.
• Collision coverage
– Damages to your own
vehicle.
Auto insurance
• Factor that affect the
cost of your insurance
payments:
–
–
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–
Driver Classis faction
Where you live
Discount eligibility
Car make, model, and
year
– Deductible amount
– Amount of coverage
– Insurance Company
Auto Insurance
• Property damage
liability
– a level of insurance that
covers any damage
caused to other people's
property, including their
vehicle.
• Comprehensive
insurance
– is a level of insurance that
covers the damage or loss
of a vehicle due to fire,
theft, vandalism, hail, and
other causes.
• uninsured/underinsured
motorist coverage
Auto insurance
• After reviewing her
driving record for the past
3 years, Cindy’s insurance
company offers her a
good driver discount of
4.5%.
• Her original policy was
based on the premiums
listed. What is her new
annual premium including
the discount?
•
•
•
•
Bodily Injury 31.75
Property Damage 120.50
Collision 275.75
Comprehensive $100
• $528 originally
• Discounted = 504.24
Health Insurance
• Health Maintenance
Organization, or an HMO, is a
type of managed care
organization that provides
healthcare services from
predefined doctors, hospitals,
and other providers.
• Preferred Provider Organization,
or a PPO, is a type of managed
care organization that provides
health care by doctors, hospitals,
and specialists that are under
contract with the insurance
company and provide health care
at a lower rate.
• fee-for-service plan is an
insurance plan that pays their
share of covered medical services
after treatment is provided, once
the policy holder has paid the
deductible, and any co-pays.
• co-payment, or co-pay, is a set
amount an insurance policy
holder pays to access medical
treatment .
Health Insurance
•
Deductible is the amount that an
insurance policy holder must pay
in order to receive the benefits of
the policy; after which the policy
covers any medical expense over
the amount of the deductible.
• Managed care plans are plans
that are composed of medical
professionals whose aim is to
reduce the cost of medical
treatment while providing a high
level of health care through the
subsidies of regular premiums to
insurance companies.
Health Insurance
• What are the key
variables that must be
weighed against each
other when considering
an HMO, PPO, fee-forservice, or other plan?
•
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Cost
Freedom
Provider
Flexibility
• What is the difference
between a co-payment
and co-insurance?
• A co-payment is a flat fee
which must be paid for
each applicable service,
whereas co-insurance is
based off of a percentage
of the total cost incurred.
Health Insurance Coverages
• Inpatient Hospital
services
• Office visits including
medical test and x-rays
• Dental Care
• Prescription Drugs
• Drug and alcohol abuse,
mental, and health
Health Insurance
• Sally’s employer pays for
38% of her annual health
insurance premium of
$4,350.00. Sally pays the
remaining balance by
having it deducted in
equal amounts from her
26 paychecks throughout
the calendar year. How
much will Sally have
deducted from each
paycheck?
• 4350 * 0.38= 1653
• New price $2697
• Divide by 26 weeks
• $103.73
Home owner’s insurance
Home owner’s insurance
• Renters Insurance
– insurance that protects the
policy holder’s belongings
from lightning, windstorm or
hail, vandalism or theft,
damage from vehicles and
aircraft, riot, glass breakage,
smoke, volcanic eruption, and
personal liability.
• Rider
– additional insurance that
modifies an existing insurance
policy to extend its coverage.
• Umbrella Insurance
– an insurance policy that
protects the value of the
insurer's property and
earnings beyond the standard
limits set by their primary
policies.
• Replacement Cost
– the cost of replacing an asset
using the present value of the
asset to determine
reimbursement.
Home owner’s insurance
• What policy should owners of
older homes consider?
• Policy type HO-8 is used for
older homes.
•
List three ways to reduce your
homeowners insurance
premiums.
–
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deals
Bundle
Auto
Disaster
Group coverage
• What might factor into the
cost of your house that would
not factor into the cost of
rebuilding it?
• The price of the land is
included in the cost of some
homes, but since it is not in
danger from many of the
perils your home may be
insured against, it should not
be considered when buying
homeowners insurance.
Home owner’s insurance
Home owner’s insurance
• Susan is paying $0.30 per
$100 on her $483,000
home in homeowners
insurance annually. If her
annual homeowners
insurance premium is
divided into twelve equal
monthly installments to
be included on each of
her monthly mortgage
payments of $2128.00,
what is her total monthly
payment?
•
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•
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Home owners insurance:
0.30 per $100
$483,00 * .003
= $1,449
/12 months
=120.75
• Plus monthly mortgage
($2,128.00)
• =$2,248.75
TOPIC TEST

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