Why does it cost so much?
The specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time
Premium
FSA
Flexible Spending Account
A person who compiles and analyzes statistics to calculate risk and determine insurance rates and premiums
Actuary
The amount of money you agree to pay towards your losses before your insurance coverage will begin paying
Deductible
Jim was in a car accident that he caused. He has a deductible of $500 and his Maximum Insurance Limit is $30,000. It will cost him $5,000 to get his car fixed. How much will he pay out-of-pocket?
$500
What are 3 factors can determine your car insurance premiums?
Age, Gender, location, credit score, miles driven, age of car, type of car
HMO
Health Maintenance Organization
A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy
Claim
An agreement where you make regular payments to a company and the company promises to pay you money if you suffer a specified injury, illness, loss, etc.
Insurance
Sharon has a copay of $20 and a deductible of $3,000. She has a procedure that costs $4,200. What will she pay out-of-pocket?
$3,020
What 2 factors can determine your life insurance premiums?
Age, gender, health, smoker, alcohol use
HSA
Health Savings Account
A fixed dollar amount that you agree to pay each time you receive medical treatment, such as a doctor's visit or prescription
Copay
Auto insurance that protects you against medical costs for the bodily injury of others and damages to the property of others if you are at fault in an accident
Liability Coverage
Jordy bought smart phone insurance for her new iphone. It has a $50 deductible and the insurance will pay up to $500 for a new phone. If she needs to get a new phone that costs $1,100, what will she pay out-of-pocket?
$650
Why does coinsurance cost a different amount than a copay when you go to the doctor?
Copay is a flat amount and coinsurance is a percentage of the cost of the treatment
PPO
Preferred Provider Organization
The maximum amount an insurance company will pay if you file a claim
Coverage Limit
Insurance paid to named beneficiaries when the insured person dies
Life Insurance
Your friend slipped an fell in your apartment and broke his hip. Your renter's insurance covers any medical expenses your friend will incur. Aside from your premium every month, will you have any out-of-pocket payments?
No
How do insurance companies make a profit when they have to pay out all of the money for insurance claims?
By collecting premiums from many people to be able to pay out for the few people that turn in claims for emergencies.
FDIC
Federal Deposit Insurance Corporation
A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time
Disability Insurance
A federal and state assistance program that pays for health care services for people who cannot afford them
Medicaid
Your apartment building burned down and everything in it. Your landlord had property insurance and is going to rebuild. All of your property was destroyed and it is estimated to be worth approximately $25,000. How much will you pay out-of-pocket to replace your items?
All of it