UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving...
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Transcript of UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving...
![Page 1: UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving can result in an accident A house can burn down after.](https://reader036.fdocuments.us/reader036/viewer/2022072011/56649e0e5503460f94af8c04/html5/thumbnails/1.jpg)
Managing RiskUNIT VII – Personal Financial Literacy
![Page 2: UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving can result in an accident A house can burn down after.](https://reader036.fdocuments.us/reader036/viewer/2022072011/56649e0e5503460f94af8c04/html5/thumbnails/2.jpg)
Managing Risk• Every decision we make involves
some type of risk•Driving can result in an accident•A house can burn down after you purchase it•Playing a sport can lead to injuries
• These threats to your safety can happen at any time and are often unexpected• The best way to prepare is to
purchase insurance
![Page 3: UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving can result in an accident A house can burn down after.](https://reader036.fdocuments.us/reader036/viewer/2022072011/56649e0e5503460f94af8c04/html5/thumbnails/3.jpg)
Auto Insurance• Provides financial protection against
losses caused by an auto accident or other damage to a car• Examples of Coverage•Collision – provides for repair/replacement of policy owner’s car damage•Liability – covers cost of property damage or injuries to others caused by policy owner•Comprehensive – covers damage that is a result of fire, flood, and theft
![Page 4: UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving can result in an accident A house can burn down after.](https://reader036.fdocuments.us/reader036/viewer/2022072011/56649e0e5503460f94af8c04/html5/thumbnails/4.jpg)
Health Insurance• Provides payment for certain health-
care costs including coverage for dental and vision care• Examples of Coverage•Traditional – provides reimbursement for medical expenses; plans included deductibles and copays •HMOs – cover medical services through a specific group of physicians; monthly fee regardless of whether services are used or not•HSA (Health Savings Accounts) – provide pre-tax accounts for medical costs
![Page 5: UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving can result in an accident A house can burn down after.](https://reader036.fdocuments.us/reader036/viewer/2022072011/56649e0e5503460f94af8c04/html5/thumbnails/5.jpg)
Renter’s Insurance• Provides financial protection in case of
loss of personal possessions in a rental unit, as well as injury to others on the property
• Protection against financial loss from damage to your home or its contents, as well as injury to others on the property
Homeowner’s Insurance
![Page 6: UNIT VII – Personal Financial Literacy. Every decision we make involves some type of risk Driving can result in an accident A house can burn down after.](https://reader036.fdocuments.us/reader036/viewer/2022072011/56649e0e5503460f94af8c04/html5/thumbnails/6.jpg)
Life Insurance• Provides financial protection to
dependents of policy owner when policy owner dies (to cover such expenses as income replacement, debt repayment, funeral expenses, and education expenses)
• Provides income over a specified period when a person is ill and unable to work; most disability policies end at retirement age (65-70)
Disability Insurance