Life Insurance Life insurance is a contract specifying a sum to be paid to a beneficiary upon the insured’s death Beneficiary- the recipient of any policy proceeds if the insured person dies
Transcript
Slide 1
Life insurance is a contract specifying a sum to be paid to a
beneficiary upon the insureds death Beneficiary- the recipient of
any policy proceeds if the insured person dies
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To protect those who depend on you as a source of income Pay
off home and debt at time of death Money for children whey they
reach specific age Education for children Retirement income
Savings
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A term policy is life coverage only On the death of the insured
it pays the face amount of the policy to the named beneficiary. You
can buy term for periods of one year to 30 years. Benefits Cheap
know exact amount paid out at death
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Combination of a term policy with an investment component.
Guaranteed face value will be paid The policy builds cash value
that you can borrow against Riskier because of investment option
Must stay in for 20 or more years to see benefits Expensive
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Disability Insurance replaces a portion of ones income if they
become unable to work due to illness or injury
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Short-Term Disability policies (STD) have a waiting period of 0
to 14 days with a maximum benefit period of no longer than two
years. Long-Term Disability policies (LTD) have a waiting period of
several weeks to several months with a maximum benefit period
ranging from a few years to the rest of your life.
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based on Age Sex Occupation amount of potential lost
income
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If you have paid in to SS, entitled to: Payment if unable to
work Physical or mental condition to prevents work Condition is
expected to last 12 months or more Benefits determined by Pay # of
years covered by SS
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Health insurance provides protection against financial losses
resulting from injury, illness, and disability.
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Entire group has same coverage Pay same premium Pros Negotiate
better coverage and lower premiums Cons If you are in good health
pay more for others Maternity? Insurer cant cancel on any one
person for medical reasons
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1988 66% of large companies (200+ workers) offered retiree
coverage 2009 only 29% of large companies and 5% of smaller
companies in 2009 Why is there such a gap between 1988 and
2009?
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High premiums/High deductibles Require a physical exam Insurer
can refuse to cover certain health problems
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Co-pays- The amount an insured person is expected to pay for a
medical expense at the time of the visit Co-insurance- the
percentage of eligible charges payable by the insured for covered
services 80/20- insurance pays 80%, you pay 20% Out of Pocket
Maximum- maximum dollar amount per year of eligible medical charges
payable by the member directly to providers Deductibles, co-pays,
co-insurance
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Medical- routine visits, x rays, lab test Prescription may be
covered- use generic Hospital- bills for room, food, drugs
Surgical- surgeons fees for operation Cosmetic and elective no
covered Some surgeries may exlcuded
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Gives protection against catastrophic expenses of serious
illness or injury Usually has a specified lifetime maximum Requires
co-insurance 20%
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Costs extra Can choose whether to enroll Different coverage for
different plans
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Group of doctors and hospitals that work together to provide
services at a set fee You must choose from doctors on list or it
costs you more Co-payments
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Group plan offering prepaid medical care to members Has own
facilities Must use a doctor on the HMO staff Routine physicals
usually covered Co-pay required
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allows people who change jobs opportunity to continue group
insurance for limited period of time (18 months) Premiums paid by
individual not Purpose- give time to obtain other insurance from
new employer or individual policy
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Medicare Health insurance for people 65 and older Are not fully
covered until 67 Paid for by employee payroll deductions Medicaid
Health insurance for people with low incomes and limited resources
Are limits and exclusions
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You hit and injure a pedestrian in a crosswalk Automobile!
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After losing her husband to a heart attack, the wife is left
alone to care for 2 children Life!
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You need a cast after breaking an ankle while roller-blading
Health!
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You apartment is broken into and your computer is stolen
Renters!
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You are injured in an automobile accident and are unable to
work for 2 months Disability!
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Your garage was destroyed by a fire which started by a
lightning bolt hitting your home Homeowners!
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A daughter, who is financially responsible for her mothers
nursing home bills, dies from an undetected heart defect Life!
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A doctor diagnoses a child with tonsillitis during a visit to a
clinic Health!
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Sick at home from food poisoning after eating a carnival
corndog Nothing!
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You get pulled over and receive a speeding ticket on your way
to the mall Nothing!