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Insurance Jeopardy ©. Joan Koonce, Ph.D., AFC (SM) Extension Financial Planning Specialist. Terminology & Concepts. Health & Disability Insurance. Life Insurance. Property & Liability Insurance. Other/ Supplemental Insurance. 100. 100. 100. 100. 100. 200. 200. 200.

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Insurance jeopardy l.jpg

Insurance Jeopardy©

Joan Koonce, Ph.D., AFC(SM)

Extension Financial Planning Specialist


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Terminology

& Concepts

Health &

Disability

Insurance

Life

Insurance

Property

& Liability

Insurance

Other/

Supplemental

Insurance

100

100

100

100

100

200

200

200

200

200

300

300

300

300

300

400

400

400

400

400

500

500

500

500

500


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Terminology & Concepts - 100

This is the dollar amount you pay towards your expenses before the insurance company pays their portion.

  • What is the deductible?


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Terminology & Concepts - 200

This is the percent of your expenses you pay after the deductible.

  • What is coinsurance?


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Terminology & Concepts - 300

Many insurance companies will not cover these until after a waiting period has expired.

  • What are pre-existing conditions?


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Terminology & Concepts - 400

This provision in an insurance policy puts a limit on the total amount you will pay out of pocket for your loss.

  • What is a coinsurance cap or stop-loss provision?


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Terminology & Concepts - 500

This provision in an insurance contract prevents you from being reimbursed for more than 100 percent of your loss.

  • What is a coordination of benefits clause?


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Health & Disability - 100

You use this type of account to pay for medical expenses with pre-tax dollars.

  • What is a flexible spending account?


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Health & Disability - 200

This is the most liberal definition of disability found in disability income insurance contracts.

  • What is own occupation?


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Health & Disability - 300

Long-term care insurance companies assess the need for long-term care by using these as benefit triggers.

  • What are Activities of Daily Living (ADLs)?


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Health & Disability - 400

This type of health insurance plan costs more but provides you with the greatest choices of doctors.

  • What is fee-for-service or indemnity plan?


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Health & Disability - 500

These health care plans limit your choice of doctors. Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) are in this category.

  • What are managed health care plans?


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Life Insurance - 100

Because it is temporary insurance protection and has no savings component, it costs less than other types of life insurance.

  • What is term life insurance?


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Life Insurance - 200

Doing this will cause the death benefit of a life insurance policy to be less than the original face value when purchased.

  • What is taking out a policy loan?


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Life Insurance - 300

Lump sum, interest only and life annuity are examples.

  • What are settlement options?


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Life Insurance - 400

This feature in a life insurance policy allows you to exchange a term life insurance policy for one that has a cash value.

  • What is a convertibility feature?


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Life Insurance - 500

These two types of life insurance have a savings component and allow you to choose your own investments.

  • What is variable life and variable-universal life?


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Property & Liability - 100

25/50/25

  • What is the minimum amount of automobile bodily injury/property damage liability coverage required in Georgia?


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Property & Liability - 200

This type of automobile insurance covers your losses if you are hit by a hit-and-run driver.

  • What is uninsured/underinsured motorist coverage?


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Property & Liability - 300

When purchasing homeowner’s insurance to cover your home, this is uninsurable.

  • What is land?


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Property & Liability - 400

You add these to your standard homeowner’s policy to increase coverage on items that are inadequately covered.

  • What are floaters?


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Property & Liability - 500

These two types of automobile insurance coverage are required by lenders.

  • What is collision and comprehensive?


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Other/Supplemental - 100

Low-income, blind or elderly persons can obtain health care through this program funded by the state and federal government.

  • What is Medicaid?


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Other/Supplemental - 200

This type of insurance only covers specific illnesses or accidents.

  • What is dread disease and accident insurance?


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Other/Supplemental - 300

It is a type of insurance that must be purchased if you don’t pay at least 20 percent down when purchasing a home.

  • What is private mortgage insurance?


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Other/Supplemental - 400

This coverage pays for the difference between the vehicle’s value and what you may still owe on the loan.

  • What is gap insurance?


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Other/Supplemental - 500

People purchase these types of insurance to pay off their mortgage in the event of their death and make their mortgage payment if they become disabled.

  • What is credit (mortgage) life and credit (mortgage) disability income insurance?


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Insurance Terminology and Concepts

  • Risk

    • The uncertainty that you will incur a financial loss and the uncertainty regarding the size of the financial loss

  • Pure Risk

  • Speculative Risk


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Insurance Terminology and Concepts

  • Ways to Manage Risk

    • Avoid risk

      • Example: Don’t drive

    • Reduce risk

      • Example: Wear seat belts

    • Retain or accept risk

      • Example: Pay all or a portion of the loss

    • Transfer or share risk

      • Example: Purchase insurance


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Insurance Terminology and Concepts

  • Premium

  • Deductible

  • Coinsurance

  • Co-payment

  • Coinsurance Cap or Stop-Loss Provision

  • Pre-existing Conditions

  • Waiting Period

  • Policy Limits

  • Policy Provisions

  • Coordination-of-benefits Clause


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Insurance Terminology and Concepts

  • Types of Insurance

    • Health, Disability Income and Long-Term Care Insurance

    • Life Insurance

    • Property and Liability Insurance

      • Automobile insurance

      • Homeowner’s insurance

      • Personal umbrella liability insurance


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Health Insurance

  • Major Types of Health Care Coverage

    • Basic health insurance

      • Hospital insurance

      • Surgical insurance

      • Medical expense insurance

    • Major medical insurance


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Health Care Plans

  • Private Health Care Plans

  • Government-Sponsored Health Care Plans


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Private Health Care Plans

  • Fee-For-Service or Traditional Indemnity Plans

  • Managed Health Care Plans

    • Health maintenance organizations (HMOs)

    • Preferred provider organizations (PPOs)


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Government-Sponsored Health Care Plans

  • Medicaid

  • Medicare

  • Worker’s Compensation


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Medical Flexible Spending Accounts

  • These accounts allow you to pay for medical expenses with pre-tax dollars.

  • Money put into the account is used to pay for un-reimbursed medical expenses.

  • Some expenses are not eligible for coverage.

  • You either use the money or lose it.


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Disability Insurance

  • Disability income insurance replaces 60 to 80 percent of your income if you are unable to work due to an illness or injury.

    • Own versus any occupation

    • Residual clause

    • Benefit period

    • Elimination (waiting) period

    • Short-term versus long-term disability


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Long-Term Care Insurance

  • Long-term care services are provided when a person cannot perform certain activities of daily living (ADLs) and/or is cognitively impaired.

  • What does long-term care insurance cover?

    • Skilled, intermediate and custodial care

    • Home care services, physical therapy, homemakers, home health aides

    • Assisted living, adult daycare, other care in the community

    • Alternate care (other physician recommended services)

    • Respite care for the caregiver

    • These accounts allow you to pay for medical expenses with pre-tax dollars.


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Life Insurance Terms

  • Face Value: the benefit due upon death

  • Insured: the person whose life is covered by the policy

  • Policyholder or Policy Owner: the individual or business that pays for and owns the policy

  • Beneficiary: the recipient of the benefit upon the death of the insured


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Two Basic Types of Life Insurance

  • Term Insurance

  • Cash-Value Insurance

    • www.trustedquote.comwww.trustedquote.com


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Types of Cash-Value Life Insurance

  • Whole Life Insurance

  • Universal Life Insurance

  • Variable Life Insurance

  • Variable-Universal Life Insurance

    • www.lifeinsuranceindepth.comwww.lifeinsuranceindepth.com


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Life Insurance Clauses

  • Incontestability Clause

    • Places a time limit, usually two years, on the right of the insurance company to deny a claim based on information provided in the application

  • Suicide Clause

    • Gives the insurance company the right to deny a claim if the inured dies by suicide within a certain period of time, usually two years


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Life Insurance Settlement Options

  • Lump-Sum Settlement

  • Interest-Only Settlement

  • Period-Certain Settlement

  • Installment-Certain Settlement

  • Life-Annuity or Life Income Settlement


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Types of Automobile Insurance

  • Bodily Injury and Property Damage Liability

    • Required coverage in the amount of 25/50/25 in Georgia

  • Medical Payments


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Types of Automobile Insurance

  • Uninsured and Underinsured Motorist Bodily Injury and Property Damage

  • Collision and Comprehensive

    • Deductibles apply to this coverage

    • Required by lenders if your car is financed


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Types of Automobile Insurance

  • No-Fault Insurance

    • Only available in “no-fault” states

    • Your insurance pays for your losses and their insurance pays for their losses – no legal battles.

  • www.autoinsuranceindepth.comwww.autoinsuranceindepth.com


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Homeowner’s Insurance Terms

  • Replacement Cost/Value: the amount necessary to repair, rebuild or replace an asset at today’s prices

  • Current Market Value (CMV): Original purchase price minus depreciation, also referred to as actual cash value

  • Floater Policies

  • Inflation Protection Endorsement


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Six Basic Forms of Homeowner’s Insurance

  • Basic Forms of Homeowner’s Insurance

    • Broad Form Homeowner’s Insurance

    • Special Form Homeowner’s Insurance

    • Renter’s Insurance

    • Condominium Owner’s Insurance

    • Older Homes Homeowner’s Insurance

  • Policies differ based on the type of property, amount of coverage and number of perils (events that cause a loss such as fire, tornado, etc.) covered.


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Homeowner’s Insurance Coverage

  • Property

    • Home

    • Other detached buildings

    • Personal property

    • Landscaping

    • Loss of use

  • Liability

    • Comprehensive personal liability

    • No-fault medical payments

    • No-fault property damage


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Personal Umbrella Liability Insurance

  • Covers liability costs after the underlying automobile and homeowner’s policies have been exhausted

  • Standard amount of coverage is $1 million although higher amounts can be purchased


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Other/Supplemental Insurance

  • Dental and Vision Insurance

  • Dread Disease and Accident health and Life Insurance

  • Private Mortgage Insurance

  • Gap Insurance

    • www.autoinsuranceindepth.com/gap-insurance.htmlwww.autoinsuranceindepth.com/gap-insurance.html

  • Credit Life and Disability Income Insurance

  • Children’s Life Insurance


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www.gafamilies.com

1-800-ASK-UGA1


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