Bus 12 insurance oct 28, 2010
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Transcript of Bus 12 insurance oct 28, 2010
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InsuranceOctober 28, 2010
Bus 12 – Money Matters R. Okumoto
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o What is Insurance?
o What is Insurance to you?
o Who is Important to you ?
o What is Important to you ?
o How to Buy and Select Insurance
Lecture TopicsLecture Topics
Bus 12 – Money Matters R. Okumoto
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“ If there were no risk in the world, then there would be no need for insurance”
Insurance Defined:
Insurance is a financial arrangement with two primary characteristics:
Risk of financial loss is transferred from an individual to a group Losses are equitably shared by all members of the group
What is Insurance?What is Insurance?
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Insurance is Legal Gambling!
Its foundation is based on Probability Theory
o The Formula is simple:o The Insurance company determines if a loss is insurableo You pay your premium for your insurance coverageo The Insurance company invests your moneyo The Insurance company waits for claimso Both sides are betting or hoping for no losses or claims
What is Insurance?What is Insurance?
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Bus 12 – Money Matters R. Okumoto
Insurance Overview
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“ Peace of Mind”
“Source of Security”
“Allows you to sleep at night”
What is Insurance to You?What is Insurance to You?
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Insurance is purchased to manage the (3) basic rules of risk:
1. Do not risk more than you can afford to lose
2. Consider the odds of loss
3. Do not insure small items (costs)
Why Buy Insurance?Why Buy Insurance?
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o Family?
o Friends?
o Pets?
o People who work for you?
o People who employ you?
Who is Important to you?Who is Important to you?
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o Health?
o Life?
o Home?
o Car?
o Your Earnings?
What is Important to you?What is Important to you?
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o Life Insurance
o Health / Medical Insurance
o Disability Insurance
o Long-term Care Insurance
Protect You and Your FamilyProtect You and Your Family
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Term versus Whole Life Insurance
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Susie Orman on Life Insurance
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Bus 12 – Money Matters R. Okumoto
How Health Insurance Works
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o Home Owner Insurance
o Renter Insurance
o Auto Insurance
Protect Your PropertyProtect Your Property
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Save Money on Homeowners Insurance
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Save Money on Car Insurance
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o Annuities
o Permanent Life Insurance
Protect Your RetirementProtect Your Retirement
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o Criteria for Selection:
o Rating Agencies
o Financial Size
o Age of firm
How to Select Insurance How to Select Insurance CompaniesCompanies
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o Premium
o Death Benefit Value
o Term Insurance
o Permanent Insuranceo Whole Lifeo Universal Life
Key Life Insurance Terms Key Life Insurance Terms
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o Coinsurance
o Co-Payment & Deductible
o Covered Expenses / Exclusions
o Preexisting Condition
o Major Medical Coverageo HMOo PPO
Key Medical Insurance TermsKey Medical Insurance Terms
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Co-PayAnd
Coinsurance
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PPO versus HMO
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SPECIFIC TO CARS
o Part A – Liability Coverageo Part B – Medical Payment Coverageo Part C – Uninsured Motorist Coverageo Part D – Physical Damage or Loss Coverage
Key Property & Casualty Key Property & Casualty Insurance TermsInsurance Terms
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InsuranceOctober 28, 2010
Bus 12 – Money Matters R. Okumoto