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Insurance, a necessary evil - betting against yourself. But who could take a chance not having the protection in case an accident happens?

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  1. 1. Insurance & Risk Management
  2. 2. Can You Believe?  The number of insurance claims for auto accidents involving teens is ____% higher than those for adults.  Teen crash rates drop by ____% six months after getting their license. 100 40
  3. 3. Can You Believe?  In the latest survey available, ____% of the U.S. population experienced some level of disability in a year.  Head injuries cause about ____% of all bicycling fatalities. 20 75
  4. 4. Can You Believe?  There is a ____% chance you’ll be involved in an alcohol-related traffic accident at some point in your life.  At work, a disabling injury occurs every ____ seconds. 30 80
  5. 5. Can You Believe?  Sixteen-year-old drivers have ____ times the risk of being in a crash compared to 18-year-old drivers. 3
  6. 6. Risk Management “In exchange for a relatively small payment, which is the premium, you’re protected against the chance of a big financial setback, a large loss.”
  7. 7. Risk Management  Means you use various ways to deal with potential personal or financial losses.
  8. 8. Insurance  Protection against large-scale financial loss
  9. 9. Insurance Premium  The payment you make to an insurance company in exchange for its promise of protection and help.  Can be monthly, quarterly, semi- annually, or annually.
  10. 10. Deductible  The amount of the loss you must pay out of your own pocket before the insurance company begins to reimburse you.  Range from $100-$1,000+  SHOP AROUND for best rates
  11. 11. Insurance Claim  A demand made by the insured person to have a payment made as determined by the policy  Ex) car repairs, medical bills, etc.
  12. 12. Types of Insurance Automobile Health Homeowners/Renters LifeDisability
  13. 13. Auto Insurance  Provides money in  the event of a car accident.  Pays for medical expenses and may pay for repairs.
  14. 14.  In NC, ALL LICENSED DRIVERS must have insurance that covers at least $30,000 for a single person’s injuries, $60,000 for multiple injuries and $25,000 for property damage
  15. 15. Auto Policies  Age  Gender  Marital Status  Type of Car  Cost of Repairs  Mileage  Location  Law Enforcement  Driving Record The following factors can influence the cost of the policy.
  16. 16. Health Insurance  Pays the medical bills (including doctor and hospital visits, medicine, rehabilitation, etc.) in case you or your family members, become sick or injured.  The Affordable Care Act (“Obamacare”) allows young adults to remain on their parents health insurance until age 26.
  17. 17. Property Insurance  Also called Homeowners Insurance  Renters Insurance also available  Protects your material possessions in case they are damaged by fire, flood, or theft.
  18. 18. Life Insurance  Protects people who depend on you financially in the event of your untimely death.  Pays for death expenses (funerals, etc.) and other expenses after the loss of income from the deceased  Term Life vs Whole Life
  19. 19. Future Insurance Needs  Health Insurance  Property Insurance  Life Insurance  Disability Insurance  Liability Insurance
  20. 20. Estate Planning  Estate planning is preparing a plan for transferring property during one’s lifetime and at one’s death.  Goal should be to minimize taxes on the estate, make known how you want your possessions distributed, and to provide for a smooth transfer of your possessions to loved ones after death.
  21. 21. Tools for Estate Planning  Will  Trust  Joint Ownership of Assets
  22. 22. Will  A legal document that tells how you want your estate to be distributed after your death.
  23. 23. Power of Attorney  A legal instrument authorizing one to act as another’s attorney or agent.
  24. 24. Trust  A legal document in which an individual gives someone else control of property, for ultimate distribution to another person.