INSURANCE

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Insurance Basics
To manage your risk of financial loss from
illness, injury, or damage, you can buy
insurance.
In exchange for this protection, you make a
regular payment to the insurance company
called a premium.

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Insurance Basics
 When you buy insurance, you sign a legal
contract called a policy.

 You then become the policyholder.

 Different policies protect you from different

types of loss.

 If you do have a loss covered by your insurance

policy, you file a claim, a formal request for
payment from the insurance company.
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Insurance Basics
 Insurance works by transferring funds from a
large group to the few who actually suffer
losses.

 Insurance companies collect premiums from all

the policyholders.

 Then, they use these funds to pay

policyholders who have losses.

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AUTOMOBILE
INSURANCE
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Automobile Insurance
Types of Coverage:
•Bodily injury liability coverage insurance
that protects you against financial loss,
including the cost of your legal defense,
when you are legally responsible for
injuring other people in an automobile
accident.
•Property damage liability coverage
insurance that pays for damage you
caused to another persons property.It
does not cover damages to your car.

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AUTOMOBILE INSURANCE
Types of Coverage:
•Medical payments coverage insurance that pays medical
and funeral expenses for you, your family members, and
other passengers in your car because of injuries sustained
in an accident- no matter who caused the accident.
.

•Uninsured/underinsured motorist coverage

insurance that pays medical and damage expenses
for you and your passengers caused by a driver
without insurance or with too little insurance to
cover the loss. It does not cover the other
driver.

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HEALTH INSURANCE
 Health Insurance
Like other forms of insurance, you must pay a
premium for health insurance to your medical
insurance company.
The point of having medical insurance is to
alleviate the financial burden on you and your
family in case of medical emergencies and
chronic illnesses.
There are more costs to health insurance
besides the premium:
•Deductible: a pre-arranged dollar figure that
you’ll have to pay before the health insurance
company begins to contribute any money to your
health care costs
•Co-payments: you agree to pay a certain dollar
figure for each service
•Co-insurance: you agree to pay a certain
percentage of your health care costs 10
 Health Insurance
 Depending on your place of work, you
will have different health care policy to
choose from.
 Each medical insurance plan have
different coverage priorities.
 Some of these include
• Doctor visits
• Hospital and extended care
• Emergency
• Prescription drug
• Home health care

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RENTERS INSURANCE

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 RENTERS INSURANCE
 If you rent an apartment or condo, you need
insurance to protect your belongings

 Your landlords insurance does not cover your

belongings, it only protects the building

 Renters insurance covers losses to your personal

property from:
• Fire or lightning
• Windstorm or hail
• Explosion
• Aircraft
• Vehicles
• Smoke
• Vandalism
• Theft
• Falling Objects

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 RENTERS INSURANCE
 Floods and earthquakes are not
covered by renters insurance

 If you live in an area prone to either,

you will need to buy a separate
policy

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