Transcript Deirdre Connolly Module 4 Insurance PowerPoint

THINGS TO KNOW WHEN
ENTERING A NEW JOB
I. HOW DO I SELECT APPROPRIATE
HEALTH/VISION/DENTAL INSURANCE THAT
WILL BEST MEET MY NEEDS?
The medical plan you choose should reflect the type of care you and your
dependents need now and anticipate needing in the coming year. Your choice
should also be consistent with your ability to pay.
II. WHAT IS A HEALTH SAVINGS ACCOUNT
AND HOW CAN THIS BENEFIT ME?
A health savings account is a tax advantaged plan that is designed to help
account holders save money for future medical expenses.
Advantages of HAS include
• Your account stays with you
• No federal income tax on contributions
• Earnings grow tax free
• Medical expenses are paid tax free
III. WHAT IS DISABILITY INSURANCE AND
SHOULD I ENROLL?
Disability insurance replaces a portion of your income if you become disabled
and are no longer able to work.
A typical group plan offered by an employer will replace up to 60% of your
salary.
VI. WHAT IS LIFE INSURANCE
AND HOW MUCH SHOULD I GET?
Definition of Life InsuranceA protection against the loss of income that would result if the insured
passed away. The named beneficiary receives the proceeds and is thereby
safeguarded from the financial impact of the death of the insured.
VI. WHAT IS LIFE INSURANCE
AND HOW MUCH SHOULD I GET?
The amount of insurance you might need/want will vary widely depending on
your current financial situation.
Two general situations would be:
• You want enough insurance to cover a specific use and don't need any insurance to
provide future income for your spouse.
• Situation two: You want insurance which will provide future income for your
spouse/kids.
V. WHAT ARE THE DIFFERENT TYPES OF
RETIREMENT PLANS I SHOULD CONSIDER
FOR MY LONG-TERM GOALS?
There are two major types of plans, defined benefit and defined contribution.
• Defined benefit plan- funded by the employer, promises you a specific
monthly benefit at retirement.
• Defined contribution plan- does not promise you a specific benefit amount
at retirement. Instead, you and/or your employer contribute money to your
individual account in the plan. Examples would be 401k, ESOP, SEP and
profit sharing plan.
REFERENCES
(U.S. Department of Labor)
(San Diego State University , 2011)
(ASEA Health Trust)
(SmartMoney, 2005)