Bell Ringer – 11. Log on to a computer and then

turn off your monitor2. Test your insurance knowledge

with what you have learned so far this unit by completing the “Learning the Ropes” worksheet

INSURANCE!

INSURANCE BASICS

• Life is full of RISKS!• You can’t eliminate risk, but

you can manage it!• Insurance•Manages your risk of financial loss from illness, injury, or damage

INSURANCE

• Premium•regular payments to an insurance company•This offers protection for you in the event that something happens to you.

• Policy• legal contract you sign when you buy insurance

INSURANCE

• Claim•A formal request for payment from the insurance company if loss occurs

•When you make a claim, it is important to note that your premium may go up due to the claim.

HOME INSURANCE

COVERAGE

HOME OWNERS INSURANCE

• Protects you against loss from:•Fire•Theft•Other hazards

HOME OWNERS INSURANCE

• Personal Property•Covers damage to or loss of your house and its contents•Covers not only the physical structure but also any unattached structures on your property such as a garage or storage shed

• Interior•Covers furniture, appliances, curtains, and clothes

LIABILITY COVERAGE

• Covers bodily injury or damage you cause to others while on your property or in other locations

• Example:• You have been working on your roof. You leave the ladder up against your house as you go to lunch. Your neighbor’s child climbs up the ladder and falls off the roof and hurts themself. Your homeowner’s liability coverage will pay the child’s medical expenses and your legal expenses if the child’s parent sues.

RENTERS INSURANCE

• Provides same coverage as homeowner’s policy except it doesn't cover the structure of the property itself or accidents that happen outside of your rented apartment or house.

• A typical policy costs $300-500 per year.

COST OF HOMEOWNERS INSURANCE

• Premium is determined by:•Location• Some neighborhoods have more crimes than others

•Age of the house•Newer homes are less likely to burn down than older homes

•Distance to fire station or hydrant • The closer you are to a fire station, the quicker the fire can be put out

REDUCE PREMIUM BY…

• Upgrade/update your home•Old pipes can freeze and break•Old wiring can cause a fire

• Install smoke detectors• Install more security• Special discounts•Given to non-smokers•Members who work from home

PERSONAL PROPERTY OR LIABILITY?

A storm destroys the gazebo in your backyard.

Personal property

A delivery person walks up your driveway, and your dog bites him.

Liability

You are riding your bike and accidentally run into another biker, causing him to fall and break his arm.

Liability

HEALTH IN

SURANCE

HEALTH INSURANCE

• Provides money to pay for health care, illness, injury, or, in some cases, preventative care

• Basic coverage includes:•Hospitalization• Surgery•Outpatient services/Doctor visits•Major Medical (serious illness/accident)

ADDITIONAL COVERAGE

• Prescription • Can be very expensive!• Generic Drugs• Medications that have the same chemical

composition as their name brand counterparts but are less expensive

• Some policies exclude certain medications from coverage such as medication for: depression, contraceptives, diet drugs, and experimental drugs

• Dental Care

• Vision Care

HEALTH INSURANCE CAN BE PROVIDED BY:

EmployerIndividualGovernmenthttps://www.healthcare.gov/

LIFE IN

SURANCE

LIFE INSURANCE• Protects you and your family from

financial hardship that could result from the death of a family member

•Beneficiary is the person you choose to receive payment if you die

Health InsuranceLife Smart Packet – page 11

1. Go to www.esurance.com2. Under ‘Insurance Product’ select Health,

enter your zip code and select go3. Under ‘Insurance Type’ select Short Term,

your gender, your birthdate minus 5 years and select get a quote

DO NOT GIVE YOUR EMAIL ADDRESS!!!4. Review the search results and select 2 companies

ActivityFire Safety Game

https://www.travelers.com/personal-insurance/home-insurance/safety-games/firegame.html

Go to the above website to learn about fire safety in the home. Your goal is to identify all of the fire hazards in the home. After each level, read the hazard descriptions to learn about how to prevent house fires. Good luck!

IDENTIFY THE TYPE OF INSURANCE THAT WOULD BEST COVER EACH EVENT1.You invite people to your

apartment and a guest trips over a pair of shoes and breaks a finger.

2. You get food poisoning and visit the ER.

3. You hit a tree with your car and you need it repaired.

IDENTIFY THE TYPE OF INSURANCE THAT WOULD BEST COVER EACH EVENT4. Your house is destroyed by a tornado and you need to rebuild it.

5. You have a water leak in your kitchen and need to replace the flooring and cabinets.

6. An unexpected death of a family member results in funeral expenses.