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Chapter Health, Disability, and Life Insurance 23 It is important to understand the types of health insurance coverage available, as well as the sources of health insurance when choosing the best plan for your needs. Disability income insurance is important if you become unable to work. Life insurance can relieve the financial burden of those who depend on you. Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter Health, Disability, and Life Insurance 23 Glencoe Business and Personal Finance Copyright ©

Chapter 23 Health, Disability, and Life Insurance Section 1 Health Insurance and Financial Planning What Is Health Insurance? Group Health Insurance Usually sponsored by employers Covers you and your immediate family Cost is fairly low Coordination of benefits (COB) is for married couples Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 1 Health Insurance and Financial Planning What Is Health Insurance? Individual Health Insurance Bought directly from the company of your choice Covers an individual or a family Comparison shopping is essential to find the best rates Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 1 Health Insurance and Financial Planning What Is Health Insurance? Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) Continuation of medical insurance after the loss of a job Premiums are paid by the individual Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 1 Health Insurance and Financial Planning Types of Coverage Basic Health Insurance Coverage Hospital Expense Glencoe Business and Personal Finance Surgical Expense Physician Expense Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 1 Health Insurance and Financial Planning Types of Coverage Other Types of Coverage Hospital Indemnity Policies Dental Expense Insurance Unnecessary Policies Glencoe Business and Personal Finance Vision Care Insurance Long-Term Care Insurance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 1 Health Insurance and Financial Planning Choosing Coverage Health Insurance Trade-Offs Reimbursement Versus Indemnity Internal Limits Versus Aggregate Limits Deductibles and Coinsurance Out-of-Pocket Limits Benefits Based on Reasonable and Customary Charges Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 1 Health Insurance and Financial Planning Describe the pros and cons of a reimbursement policy versus an indemnity policy. Possible response: A reimbursement policy pays you back for actual expenses so you are not out any money but this might come with a higher premium since costs have the potential of being higher. An indemnity policy pays only a specified amount, regardless of the actual cost, so you could have to pay part of the expense out of pocket, but because the expenses are more determined, it could mean a lower monthly premium. Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 2 Private and Government Plans Private Health Care Plans Types of New Health Care Accounts Health Savings Accounts (HSAs) Glencoe Business and Personal Finance Flexible Spending Accounts (FSAs) Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 2 Private and Government Plans Government Health Care Programs Healthfinder Government Consumer Health Information Web Sites Medline. Plus NIH Health Information FDA Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 3 Disability Income Worker’s Compensation Sources of Disability Income Employer Social Security Private Income Insurance Programs Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 3 Disability Income Disability Insurance Trade-Offs Waiting or Elimination Period Duration of Benefits Amount of Benefits Accident and Sickness Coverage Guaranteed Renewability Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 4 Life Insurance What Is Life Insurance? Purpose of Life Insurance Pay off home mortgage and debts Provide retirement income Endowment for children Accumulate savings Education for children Income for survivors Uncovered medical expenses Estate planning Charitable donations Estate and death taxes Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 4 Life Insurance What Is Life Insurance? Life Expectancy Table Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 4 Life Insurance Types of Life Insurance Policies Limited Payment Policy Types of Whole Life Policies Variable Life Policy Adjusted Life Policy Universal Life Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter 23 Health, Disability, and Life Insurance Section 4 Life Insurance Key Provisions in a Life Insurance Policy Key Provisions Beneficiary Designation Incontestability Clause Grace Period Suicide Clause Riders Waiver of Premium Disability Benefit Accidental Death Benefit Guaranteed Insurability Option Cost of Living Protection Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Chapter Health, Disability, and Life Insurance 23 Your Tax Dollars The government uses your tax dollars to provide services needed for the health, welfare, and safety of the country. The Federal Insurance Contributions Act (F. I. C. A. ) is a tax that funds Social Security. Glencoe Business and Personal Finance Copyright © by The Mc. Graw-Hill Companies, Inc. All rights reserved.