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

1. Insurance & Risk Management

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. 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. 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. Can You Believe?
 Sixteen-year-old drivers have ____
times the risk of being in a crash
compared to 18-year-old drivers.
3

7. 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.”

8. Risk Management
 Means you use various ways to deal
with potential personal or financial
losses.

9. Insurance
 Protection
against
large-scale
financial
loss

10. 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.

11. 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

12. 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.

13. Types of
Insurance
Automobile Health
Homeowners/Renters
LifeDisability

14. Auto Insurance
 Provides money in
 the event of a car accident.
 Pays for medical expenses and may
pay for repairs.

15.  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

16. 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.

17. 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.

18. Property Insurance
 Also called Homeowners Insurance
 Renters Insurance also available
 Protects your material possessions in
case they are damaged by fire, flood, or
theft.

19. 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

20. Future Insurance Needs
 Health Insurance
 Property Insurance
 Life Insurance
 Disability Insurance
 Liability Insurance

21. 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.

22. Tools for Estate Planning
 Will
 Trust
 Joint Ownership of Assets

23. Will
 A legal document that tells how you
want your estate to be distributed after
your death.

24. Power of Attorney
 A legal instrument authorizing one to
act as another’s attorney or agent.

25. Trust
 A legal document in which an individual
gives someone else control of property,
for ultimate distribution to another
person.