Personal Insurance and Employee Benefits

Report
Personal Insurance and Employee
Benefits
Coach Johnson
Understanding Business and Personal Law
Vocabulary
 Insurance
 Life Insurance
 Insurer
 Straight Life Insurance
 Policy
 Policy Holder
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 Insured
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 Beneficiary
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 Rider
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 Insurable Interest
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 Premium
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 Face Value
 Case Value
(Whole)
Annuity
Term Insurance
Endowment Insurance
HMO
Medicare
Medicaid
What is Insurance?
 Contractual Agreement
 Prevents Loss
 Indemnify- pay for a parties loss (make good)
 Insurer (Company: State Farm, Geico, etc)
 Covered or Protected Party- Insured
 Beneficiary- Recipient of amount to be paid
 Policy- Written Contract of Insurance (Binder before)
 Face Value- Maximum paid out
 Premium-What you pay for the insurance
Life Insurance
 Pays a beneficiary after death of policy holder
 Three common types of life insurance
1. Term
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Specific time period
Cheapest form (why?)
Increase at end of term (why?)
Whole Life
2.
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Paid throughout entire life
Payments never increase (why?)
Gains cash value (why?)
Endowment Life
3.
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Specific amount and time
Paid at end of term or to beneficiary (if you die before)
Also: Accidental Death and Dismemberment Insurance
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Pays face value if you die in accident (to beneficiary)
Pays other amounts based on disabilities
Disability Insurance
 Paid when workers are “not able” to work
 Only pays a % of your normal pay
 Pay premiums to private company through employer
 Physical or Mental
 Two Major Types:
 Short Term
 Pregnancy
 Minor Injury
 Long Term
 Major Injury
 Permanent disability
Disability Examples
 These are considered severe enough to meet the test of
disability:
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Loss of both arms, both legs, or a leg and an arm
Heart and lung disease
Progressive cancer
Brain damage that results in loss of judgment or memory
Loss of vision, inability to speak, deafness
Health Insurance
 Basic Health Insurance covers:
 Inpatient and outpatient hospital care
 Physician Care (Doctor’s Visit)
 Surgery
 Prescription Drugs
 Dental and Vision (sometimes separate)
 Major Medical (must be added)
 Pays for expenses beyond normal charges (long stay, terminal illness)
Insurance Information
 Group Plans
 Purchased by individuals who work for companies
 Usually cheaper (why?)
 Sometimes employee pays part of premium
 COBRA
 Keeps employees insured after loss of job
 Individual Plans
 Covers same thing as group policies
 More expensive
More Insurance??
 Three major types of Policies
 HMO (Health Maintenance Organization)
 Members include doctors, insurance companies, labor unions,
corporations
 Must choose from list of providers
 Larger Network, Lower Coverage
 PPO
 Must choose from list of providers
 Will cover only part costs if out of network (provider)
 Smaller Network, Higher Coverage
 HRA (Health Reimbursement Account or Arrangement)
 Account pays for medical costs up to a certain amount
 You pay full out of pocket costs until deductable is reached
 After, it pays normal %
Government Healthcare
 Medicare
 Over 65 years of age
 Covered by Social Security
 Part A- inpatient hospital care
 Part B- 80% of doctors’ and other medical
Medicaid
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Low income people
Funded by state and federal funds

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