insurance 101 money $mart 2009
DESCRIPTION
Have you ever wondered what the insurance acronyms meant, the terms, etc.? This presentation provides you answers to those questions and more. Hopefully you will come away with a better understanding of auto, renters, life, and health insurance. I believe that part of my duty as an agent is to educate. My wish is this presentation helps you become a more educated consumer. Enjoy. Please let me know if you found the information helpful or if there are additional questions, call or email me. Paul Olmstead/Agent, 262-285-3599, [email protected]. You may also visit my LinkedIn profile for additional information about me and our agency.TRANSCRIPT
INSURANCE 101INSURANCE 101
Paul Olmstead Paul Olmstead
Farmers InsuranceFarmers Insurance
What is insurance?What is insurance?
Insurance is... ”money”.Insurance is... ”money”.
How much money is in your How much money is in your pocketpocket today? today?
If you don’t have enough money when an If you don’t have enough money when an accident is your fault, , they can garnish accident is your fault, , they can garnish
your wages until the debt is paid.your wages until the debt is paid.
What is Auto Insurance?What is Auto Insurance?
Do you understand what these Do you understand what these terms mean?terms mean?
BIPD 150/300/100BIPD 150/300/100
UM 150/300UM 150/300
UIM 150/300UIM 150/300
Medical 5000Medical 5000
Comprehensive 750Comprehensive 750
Collision 750Collision 750
Deductible Out of pocketDeductible Out of pocket
Loss of UseLoss of Use
What affects your premiumWhat affects your premium
Risk Assessment ScoreRisk Assessment ScoreLate Payments Late Payments Length of credit historyLength of credit historyYour vehicleYour vehicleYour driving recordYour driving recordWhere you liveWhere you liveMiles per yearMiles per yearDiscountsDiscountsMultiple policiesMultiple policies
What should you do in an What should you do in an accident?accident?
R E M A I N C A L MR E M A I N C A L MCheck for injuriesCheck for injuriesKnow your locationKnow your locationCall for helpCall for helpGive the police as much information as you canGive the police as much information as you canWrite down as much information as you canWrite down as much information as you can– Other driver’s nameOther driver’s name– License plate numberLicense plate number– Year & make of their vehicleYear & make of their vehicle– Insurance company name, coverage and addressInsurance company name, coverage and address– Names & addresses of any witnessesNames & addresses of any witnesses– Ask for the police report number, remember to get the police Ask for the police report number, remember to get the police
report. You may need it in the futurereport. You may need it in the future– Call your insurance company Call your insurance company – Draw a diagram of the accident while its fresh in your memoryDraw a diagram of the accident while its fresh in your memory– Take pictures with your cell phoneTake pictures with your cell phone
What is Renter’s Insurance?What is Renter’s Insurance?
Do you know…Do you know…
Your landlord’s insurance does not cover Your landlord’s insurance does not cover your personal property your personal property
You should obtain renters insurance You should obtain renters insurance before you move inbefore you move in
What is Actual cash value vs. replacement What is Actual cash value vs. replacement value?value?
Do you need riders for jewelry, etc?Do you need riders for jewelry, etc?
What is Life Insurance?What is Life Insurance?
Life Insurance ConsiderationsLife Insurance Considerations
How much life insurance do you need?How much life insurance do you need?
How much does the average funeral cost?How much does the average funeral cost?
Do you qualify?Do you qualify?
How much do you qualify for?How much do you qualify for?
Who are your beneficiaries?Who are your beneficiaries?
When should you review your Life When should you review your Life Insurance?Insurance?
Basics of life insuranceBasics of life insurance
Premiums are based on age and healthPremiums are based on age and health
Premiums for females are less than malesPremiums for females are less than males
Occupation or hobbies can affect life insuranceOccupation or hobbies can affect life insurance
Term, Universal Life, Whole Life, Variable LifeTerm, Universal Life, Whole Life, Variable Life
Death Benefit of Life insurance can be increasedDeath Benefit of Life insurance can be increased– 25, 28, 31, 37 & 4025, 28, 31, 37 & 40– College graduation, marriage, birth or adoption of a College graduation, marriage, birth or adoption of a
child or purchase of a home as a primary residencechild or purchase of a home as a primary residence
How much life insurance do you How much life insurance do you need?need?
Medical BillsMedical Bills
MortgageMortgage
Other Financial ObligationsOther Financial Obligations
Single/Married/Children Single/Married/Children
Funeral expenses $10,000-$15,000Funeral expenses $10,000-$15,000
Cremation expenses $4,000-$6,000Cremation expenses $4,000-$6,000
What makes an individual unable to What makes an individual unable to get life insurance?get life insurance?
AIDS AIDS Alzheimer’s DiseaseAlzheimer’s DiseaseCancerCancerCirrhosis of the liverCirrhosis of the liverCongestive heart failureCongestive heart failureDiabetesDiabetesHeart diseaseHeart diseaseHepatitis “C” positiveHepatitis “C” positiveStrokeStroke
Possible DeclinesPossible Declines
AlcoholismAlcoholism
ArthritisArthritis
AsthmaAsthma
DepressionDepression
Diabetes over age 15Diabetes over age 15
EmphysemaEmphysema
Heart bypass surgeryHeart bypass surgery
Irregular heart beatIrregular heart beatHepatitis “B” & “C”Hepatitis “B” & “C”Kidney dialysisKidney dialysisNervous DisorderNervous DisorderPsychosisPsychosisSleep ApneaSleep ApneaSyphilisSyphilis
Life Insurance Pays When?Life Insurance Pays When?
Insurer receives the death certificateInsurer receives the death certificate– Suicide? Within the policy time limitsSuicide? Within the policy time limits– Murder? Was the beneficiary the cause of Murder? Was the beneficiary the cause of
death?death?– Natural causes? Any misrepresentations such Natural causes? Any misrepresentations such
as age and sex of the deceasedas age and sex of the deceased
BeneficiariesBeneficiariesBeneficiary is the individual(s) named in the policy Beneficiary is the individual(s) named in the policy
as the recipient of life insurance payment upon as the recipient of life insurance payment upon the insured’s deaththe insured’s deathOne or more individuals – not taxableOne or more individuals – not taxableTrusts – managed by trustees for the beneficiariesTrusts – managed by trustees for the beneficiariesEstates – can be taxedEstates – can be taxedCharities – cannot be contested by disgruntled heirsCharities – cannot be contested by disgruntled heirsMinorsMinors– Designate a guardianDesignate a guardian– Pay out when child is an adultPay out when child is an adult– Place proceeds in a trust to be paid at various Place proceeds in a trust to be paid at various
intervalsintervals
Policy ExclusionsPolicy Exclusions
War – Death benefit won’t be paid as a result of War – Death benefit won’t be paid as a result of warwar
Aviation – stunt pilots, crop dusters, military Aviation – stunt pilots, crop dusters, military pilots, student pilots, recreational pilots, and test pilots, student pilots, recreational pilots, and test pilotspilots
Hazardous occupations or hobbies – racers & Hazardous occupations or hobbies – racers & stunt people stunt people
Felony – death results while committing a felonyFelony – death results while committing a felony
Suicide – usually within the first two years Suicide – usually within the first two years
What is Health Insurance?What is Health Insurance?
Do You Have Health Insurance?Do You Have Health Insurance?
You may be covered under your parent’s You may be covered under your parent’s health insurance until you are 19, 24 or 25health insurance until you are 19, 24 or 25
You may be covered under your You may be covered under your employers health insuranceemployers health insurance
You may need short term an individual You may need short term an individual policy between high school and full time policy between high school and full time employmentemployment
What does health insurance coverWhat does health insurance cover
Doctor visits Doctor visits (some are after a 1 year period)(some are after a 1 year period)
Prescriptions (Deductible)Prescriptions (Deductible)
Hospitalization (Preferred Provider)Hospitalization (Preferred Provider)
Emergency care (ambulance & helicopter)Emergency care (ambulance & helicopter)
Long term care (In home care)Long term care (In home care)
Adult day careAdult day care
How Healthy Are You?How Healthy Are You?
When was your last physical?When was your last physical?
What was your blood pressure?What was your blood pressure?
What was your cholesterol count?What was your cholesterol count?
What is your height/weight ratio?What is your height/weight ratio?
How is your mental health?How is your mental health?
When was your last hospitalization?When was your last hospitalization?
Some Exclusions for Health Some Exclusions for Health InsuranceInsurance
AIDSAIDS
Alcohol AbuserAlcohol Abuser
Cirrhosis of the liverCirrhosis of the liver
Cocaine AbuserCocaine Abuser
Congestive Heart Congestive Heart FailureFailure
Coronary Artery Coronary Artery DiseaseDisease
DiabetesDiabetes
Marijuana usageMarijuana usage
Sleep ApneaSleep Apnea
Spina BifidaSpina Bifida
What can you do?What can you do?
Eat rightEat rightExerciseExerciseQuit smokingQuit smokingQuit DrinkingQuit DrinkingStay away from DrugsStay away from Drugs
Relieve your stressRelieve your stress– Listen to MusicListen to Music– DanceDance– WalkWalk– HikeHike– FishFish– BowlingBowling– Read a good bookRead a good book– Talk to a friendTalk to a friend– Get out of the houseGet out of the house
Thank you for your time and Thank you for your time and questionsquestions
If you have any other questions If you have any other questions that you want answered please that you want answered please take one of my business cards.take one of my business cards.I will be happy to speak or meet I will be happy to speak or meet with you at your convenience. with you at your convenience.
(262) 285-3599 Office(262) 285-3599 Office(920) 254-8736 Cell(920) 254-8736 Cell
Paul Olmstead, Agent/PartnerPaul Olmstead, Agent/PartnerFarmers InsuranceFarmers Insurance