Insurance

1
Insurance
2
Importance

• The most common reason to buy a life insurance
  policy is to protect the financial interests of
  the owner of the policy in the event of the
  insured's demise
• Insurance is designed to protect a person and the
  family from disasters and financial burdens.
• For instance some financial burdens
• funeral expenses, unsettled medical bills,
  mortgages, business commitments, meeting the
  college expenses of the children, and so on.

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Importance Contd

• It may seem like insurance is a waste of
  resources- spending money on something that may
  or may not happen
• But spending some now can save a lot later
• Insurance is all about protection- it protects
  you against an unfortunate incident such as a car
  accident, a robbery, or an illness.

4
Amount

• The amount of insurance a person need can vary
  between people for several reasons
• lifestyle
• sources of income/ amount of income
• debt
• number of dependants (children)

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How it works

• Life insurance is a contract between the policy
  owner and the insurer,
• The insurer agrees to pay a sum of money upon the
  occurrence of the the person insured's death
• Once a policy is obtained a person designates
  someone as their beneficiary (the person who the
  money goes to).

6
Contract Terms

• The policy is a legal contract specifying the
  terms and conditions of the risk assumed
• Special provisions apply, including a suicide
  clause wherein the policy becomes null if a
  suicide occurs within a specified time for the
  policy date (2 years in Missouri)

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Different Types of Insurance

• There are several different types of insurance
  that a person can get.
• Renters
• Fire
• Home
• Life
• Car
• Travel
• Etc.

8
Different types of Life Insurance

• Life insurance may be divided into two basic
  classes temporary and permanent.
• Temporary
• characterized by its defined time period usually
  one year
• Permanent
• is life insurance that remains in force until the
  policy matures (pays out)

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Reasons people think life insurance is not
important for them

• I dont have a need for life insurance
• Life insurance is too expensive
• Life insurance is a hassle to get
• I dont know anything about life insurance and
  dont know where to start

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Reasons people get insurance

• They do not want to pass on their financial
  obligations to family
• They know that life insurance can guarantee a
  fixed income for a surviving parent who must
  remain at home to care for children
• They want to see their children go to college
• They know that a mother's death can be as
  financially disabling as a father's death

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Renters Insurance

• Even though your landlord probably has an
  insurance policy on your building
• You'll need to protect your personal interests
  too.
• Andit only costs a little to protect a lot.
• Renter's insurance is less costly than you might
  think.

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Renters insurance

• Some things to consider
• Your Property
• What would it cost to replace the contents in my
  home?                               
• Do I have an inventory and photographs of my
  personal possessions?                             
    

13
Renters Insurance

• If your apartment or condominium becomes
  uninhabitable due to a fire, burst pipes, or any
  other reason covered by your policy, your
  insurance will cover your "additional living
  expenses.
• This includes motel hotel rooms, food, additional
  mileage that you drive and wear and tear on your
  automobile due to that additional driving

14
Home Insurance

• Policy that combines various personal insurance
  protections which can include losses occurring to
  one's home, its contents, loss of its use
  (additional living expenses), loss of other
  personal possessions of the homeowner, as well as
  liability insurance for accidents that may happen
  at the home.
• The cost of homeowners insurance often depends on
  what it would cost to replace the house

15
Home Insurance

• Most insurers charge a lower premium if it
  appears less likely the home will be damaged or
  destroyed
• for example, if the house is situated next to a
  fire station
• In the United States, most home buyers borrow
  money in the form of a mortgage