Selecting Insurance

SELECT INSURANCE FOR A SPECIFIC CIRCUMSTANCE

2 ©2014 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance

Do You Know?1. What are the top five most expensive states for car insurance?

2. Young adults in their 20’s and 30’s account for what percentage of new long-term disability claims?a. Zero, they haven’t worked long enough to file disability claimsb. A small portion because of their good health and youth (0-5

percent) c. A significant portion (20 percent)

3. Which of the following is a major factor in nearly a third of all business bankruptcies?a. employee theftb. customer theftc. poor management

©2014 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance3

PreviewToday we will answer these questions:

• What can I insure?

• What types of insurance are right for me?

• Will I have the same insurance my entire life?

Use what you learn today to decide on insurance coverage for a specific

circumstance.

4 ©2014 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance

Specialist Insurance Topics

• Auto• Dental• Disability• Fidelity Bond• Health• Homeowners’

• Liability• Life• Renters’• Unemployment• Vision• Workers’

Compensation

©2014 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance5

Specialist Report Outline

1. What is the purpose of the insurance?

2. Who is the logical candidate to purchase the insurance?

3. What factors impact the cost of this type of insurance?

4. Do you think that the insurance is worthwhile? Why or why not?

5. What are some ways to keep costs down for this type of insurance?

©2014 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance6

Reflection

What two or three types

of insurance coverage

do think are most important

for teens and young adults?

Why?

7 ©2014 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance

ChallengeShould you insure your cellphone?

1.Find out how much it would cost to replace or repair your phone.

2.Find out the cost of cellphone insurance, the terms, any deductible, and the conditions for coverage.

3.Investigate whether or not your cellphone is covered by an existing homeowners’ insurance policy.

4.Decide whether or not it is worthwhile to insure your cellphone.

5.Consider alternative ways to reduce, avoid, or accept the risk to replace the cellphone.

8 ©2014 National Endowment for Financial Planning | Lesson 6-3: Selecting Insurance