Transcript Business & Personal Finance The protection against possible financial loss. • Policy – A contact for insurance between the • • • • policyholder and the.

Business & Personal Finance
The protection against possible financial loss.
• Policy – A contact for insurance between the
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policyholder and the insurance company
Policyholder – the purchaser of the policy
Premium – a fee paid by the policyholder to the
insurer for insurance
Coverage – protection provided by the terms of an
insurance company
Insured – the people protected by the policy
 Risk – the chance of loss or injury
 Peril – anything that may possibly cause loss.
 Hazard – anything that increases the likelihood of
loss through some peril
 Negligence – failure to take ordinary or reasonable
care to prevent accidents from happening.
 The building in which you live and any other
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structures on the property.
Additional living expenses
Personal Property
Personal liability and related coverage's
Specialized coverage's
 Personal Property Floater – additional property
insurance that covers the damage or loss of a
specific item of high value.
 Umbrella Policy – (also called: personal
catastrophe policy) supplements your basic
personal injury claims.
 Medical Payments Coverage – pays the costs of
minor accidental injuries to visitors on your
property.
Location of Home
Type of Structure
Coverage Amount and Policy Type
Home Insurance Discounts
Company Differences
Every state in the United states has it!
The law requires drivers to prove that they can pay for
damages or injury caused by an automobile accident.
Protection for Bodily Injury
and
Protection for Property Damage
Bodily Injury Liability
Medical Payments Coverage
Uninsured Motorist’s Protection
Insurance that covers physical injuries
caused by a vehicle accident for which
you were responsible.
Insurance that applies to the medical
expenses of anyone who is injured in
your vehicle, including you.
It also pays if you or your family
members are injured while riding in
another person’s vehicle or if any of you
are hit by a vehicle.
Insurance that covers you and your
family members of you are involved in
an accident with an uninsured or hitand – run driver.
Property Damage Liability
Collision
Comprehensive Physical Damage
Motor vehicle insurance that applies
when you damage the property of
others.
It protects you when you are driving another
person’s vehicle with the owner’s
permission.
Covers damage to your vehicle when it is
involved in an accident.
It allows you to collect money
no matter who is at fault.
Protects you if your vehicle is damaged in a
nonaccident situation, such as:
Fire
Theft
Falling objects
Vandalism
Hail
Floods
Tornadoes
Earthquakes
Avalanches
 Basic Health Insurance Coverage
 Hospital Expense
 Surgical Expense
 Physician Expense
 Major Medical Expense Insurance
 Long hospital stays
 Multiple Surgeries
 Hospital Indemnity Policies
 Supplement to Basic Coverage and Major Medical
 Dental Expense Insurance
 Vision Care Insurance
 Dread Disease Policies
 Trip accident, death insurance, cancer
policies
 Illegal in many states
 If you have major medical you are already
covered
 Long-Term Care Insurance
 Private Insurance Companies
 Hospital and Medical Service Plans
 Health Maintenance Organizations (HMO)
 Preferred Provider Organizations (PPO)
 Home Health Care Agencies
 Employer Self-Funded Health Plans
Blue Cross
Provides hospital care benefits
Blue Shield
Provides benefits for surgical and medical
services performed by physicians
Managed Care
Prepaid health plans that provide comprehensive health
care to their members. It is designed to control the cost
of health care services by controlling how they are used.
Health Maintenance Organization (HMO)
A plan that directly employs or contracts with selected
physicians and other medical professional to provide
health care services in exchange for a fixed, prepaid
monthly premium. Based on the idea that preventative
services will minimize future medical problems.
A group of doctors and hospitals that agree to
provide specific medical services to
members at prearranged fees.
Point-of-Service Plan (POS)
Combines features of both HMOs and PPOs
Medicare
Federally funded health insurance program available
mainly to people over 65 and to people with certain
disabilities.
Medicaid
A medical assistance program offered to certain lowincome individuals and families .
Provides regular cash income when you
are unable to work because of
pregnancy, a nonwork-related
accident, or an illness
Protect against financial losses caused by death
Types of Life Insurance Policies
Term Insurance
Whole Life Insurance
Provides protection
against loss of life for
only a specified term, or
period of time. It pays
the benefit only if you die
during the period that it
covers
A permanent policy for
which you pay a specified
premium each year for the
rest of your life
Additional Insurance Vocabulary
 Deductible – the set amount that the policy holder
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must pay per loss on an insurance policy.
Claim – request for payment to cover financial
losses.
Liability – legal responsibility for the financial cost
of another person’s losses or injuries.
Copayment – a flat fee that you pay every time you
receive a covered medical service
Beneficiary – the person named to receive the
benefits from a life insurance policy