Personal Financial Planning

Chapter 8…Insuring Your LifeChapter 9…Insuring Your Health

8-1 BasicInsurance Concepts

The Concept of Risk
1.Risk Avoidance
2.Loss Prevention and Control
3.Risk Assumption
4.Insurance
Underwriting Basics
1.Define underwriting and explain the basic concept.

8-2 Why Buy Life Insurance?

Benefits of Life Insurance
1.List at least 3 benefits.
Do You Need Life Insurance?
1.Briefly explain how to decide.
How Much Life Insurance is Right for You?
1.Briefly explain the Multiple of Earning Method.
2.Briefly explain the Needs Analysis Method

8-3 How Much Life Insurance is Right for You?

Step 1: Assess Your Family's Total Economic Needs
1.List and explain at least two of the items that you should consider when deciding how much insurance you should purchase.
2. Briefly explain why life insurance underwriting considerations are made.

8-4 What Kind of Policy is Right for You?

Term Life Insurance
1.Briefly explain Straight Term policies.
2.Briefly explain Decreasing Term policies.
Whole Life Insurance
1.Briefly explain Whole Life policies.
2.List at least two advantages to Whole Life policies.

8-5 Buying Life Insurance

A.Compare Costs and Features
B. Select an Insurance Company
C.Choose an Agent
1.Read the section and write a few details in the space provided.

8-6 Key Features of Life Insurance Policies

Life Insurance Contract Features
  1. Provide definitions/explanations for each feature.

Beneficiary Clause-___
Settlement Options-___
Policy Loans-___
Premium Payments-___
Grace Period-___
Nonforfeiture Options-___
Policy Reinstatement-___
Change of Policy-___

9-1 The Importance of Health Insurance Coverage

The Concept of Risk
  1. Explain why having health insurance is important.

9-2 a Health Insurance Plans

Private Health Insurance Plans
  1. Explain Traditional Indemnity (Fee-for-Service) Plans

  1. Define Managed Care Plans

  1. Briefly explain HMO, PPO, and Blue Cross/Blue Shield Plans…

9-2b Health Insurance Plans

Government Health Insurance Plans
  1. Briefly explain each of the following…

Medicare-___
Medicaid -___
Workers' Compensation Insurance -___
Affordable Health Care Act of 2010-___

9-3 Health Insurance Decisions

Evaluate Your Health Care Cost Risk
  1. What two costs related to illness or accidents do people need protection against?

  1. What is a flexible benefit plan?

  1. What does HRA stand for? Very briefly explain it.

  1. What does HSA stand for? Very briefly explain it.

9-4a Medical Expense Coverage and Policy Provisions

Types of Medical Expense Coverage
  1. Select 3 of the following types of coverage and explain what it covers…

  • Hospitalization-___
  • Surgical Expenses-___
  • Physician Expenses-___
  • Major Medical Insurance-___
  • Comprehensive Major Medical Insurance-___
  • Dental Services-___

9-4b Policy Provisions of Medical Expense Plans

Terms of Payment
  1. Briefly explain 3 of the following terms of payment…

  • Deductibles-___
  • Participation (Co-insurance) -___
  • Internal Limits-___
  • Major Medical Policy: An Example-___
  • Coordination of Benefits-___

Terms of Coverage
  1. Briefly explain 3 of the following 5 terms of coverage…

  • Persons and Places Covered
  • Cancellation
  • Preexisting Conditions
  • Mental Illness
  • Continuation of Group Coverage (COBRA)

9-5 Long-Term Care Insurance

Do You Need Long-Term Care Insurance?
  1. Briefly explain why long-term care coverage is important.

  1. Briefly explain 3 Long-Term Care Insurance Provisions and Costs

  1. Briefly explain 3 How to Buy Long-Term Care Insurance.

9-6 Disability Income Insurance

  1. Read the section and write 3 facts about disability income insurance that you did not know.

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