PF Unit 6
Terms
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copy deck
- the chance of loss from some type of danger
- Risk
-
how you deal with the chance of a potential
personal or financial loss. - risk management
-
1. Avoid the risk
2. Reduce the risk
3. Accept the risk
4. Share the risk - 4 options for risk management
- a written contract detailing what an insurance company will cover, how much it will pay, and how much you will pay.
- insurance policy
- the amount you pay for an insurance policy.
- premium
-
1. age
2. marital status
3. where you live
4. credit history - Factors that generally affect your premium
-
1. driving record
2. type of car you drive - factors that affect your car insurance premium
- 1. your helath
- factors that determine your health insurance premium
-
the maximum amount the insurance company will pay if
you file a claim. - coverage limit
- who is responsible for payment of bills that are above the coverage limits
-
Amounts that exceed the coverage limit are your responsibility, so you
should think carefully about choosing a low level of coverage -
the amount of a loss you must pay out of your own pocket
before the insurance company will step in and pay the rest - deductable
-
While you probably need more than the minimum amount, you
probably don’t need the maximum amount. Ask the insurance company for a reasonable amount of
coverage for your situation. - choose a reasonable coverage limit
- what type of deductible results in lower premiums
- high deductibles result in lower premiums
- should price alone determine your insurance decision
- no, go with an insurance agency that is repuatable
- why is auto insurance so important
-
Basically, if you hurt someone
else while driving, there’s no limit to the amount he or
she can sue you for. -
1. age
2. gender
3. marital status
4. type of car
5. how often you drive
6. location -
Some of the factors that can raise or lower your
premium include: - covers damage you cause to other people’s property and bodily injuries you cause to people outside of your car.
- general liability
- cover immediate compensation for bodily injury expenses to you and your passengers regardless of who is at fault.
- medical payments
-
covers repairs for damage you
cause to your car caused by an accident, whether it
involves another vehicle or an object, such as a tree - collision
- covers fire damage to your vehicle, break-ins,vandalism, or theft, as well as natural disasters such as an earthquake, hail, hurricane, or flood. Basically, it covers everything except an actual collision
- comprehensive
-
covers your lost wages and
medical expenses if you are in an accident with someone who doesn’t have auto nsurance - uninsured
-
This coverage is slightly
different in that it covers you when the cost of repairs
from an accident caused by another driver exceeds his
or her coverage limits. - underinsured
- what will lower the cost of auto insurance
-
Choosing a higher one can
significantly reduce your premiums. Just make sure
you don’t go so high that you won’t be able to afford
repairing your car if something happens. - pays medical bills when you or your family becomes sick or injured
- health insurance
-
protects your possessions such as clothes, furniture, electronics, appliances, sports equipment,
and computers. - property insurance
-
provides financial support for the people who depend on you in the event of your untimely death. If
you are single and no one is dependent on you, you probably don’t need life insurance. - life insurance
-
protects your earning power. When most people think about insuring their valuables, they think
about their car or home. But your most valuable asset is actually your ability to earn a living. - disability insurance
-
protects you in case you are legally responsible for unintentionally injuring someone or damaging
another’s property. It covers everything from legal fees to settlements in court cases - liability insurance
- what are the two most important types of insurance
- auto and health insurance