Powerpoint, adapted from a powerpoint available on the web by the Texas Department of Insurance. Review of the basic types of insurance and their reasons.

1. Lines of InsuranceLines of Insurance
What They Are and Why They AreWhat They Are and Why They Are
ImportantImportant
Adapted from a powerpoint created by The Texas
Department of Insurance

2. Major Lines ofMajor Lines of PersonalPersonal InsuranceInsurance
 Auto
 Health
 Life
 Homeowners/Renters
 Disability

3. Auto InsuranceAuto Insurance
 If you drive a car in North Carolina, you must have theIf you drive a car in North Carolina, you must have the
legal minimum amount of auto liability insurance.legal minimum amount of auto liability insurance.
 By law, you must have at least auto liability insurance.By law, you must have at least auto liability insurance.
 LiabilityLiability means obligation. If you are in an accident,means obligation. If you are in an accident,
liabilityliability insurance will pay for injured parties andinsurance will pay for injured parties and
properties.properties.
 It will NOT cover your injuries! You will need to buy moreIt will NOT cover your injuries! You will need to buy more
insurance than the legal minimum to cover (insure)insurance than the legal minimum to cover (insure)
yourself and your property.yourself and your property.

4. Auto InsuranceAuto Insurance
 Auto insurance is
mandatory in North
Carolina. You will have
to show proof of current
insurance when you:
– Get pulled over by the
police.
– Get your car inspected.
– Renew your drivers
license.
– Apply for or renew the
registration for your car.

5. Auto InsuranceAuto Insurance
 If you are pulled over, a police officer can easily check
to see if you have valid insurance for your car. If you are
caught without insurance, you can be fined hundreds of
dollars and possibly lose your license.
 Bottom line: If you drive,
you must have car insurance!

6. Health InsuranceHealth Insurance
 Health insurance is important because you never
know when you might get sick or injured! Even minor
injuries or illnesses can cost thousands of dollars to
treat.
 Many plans will allow you to remain on your parent’s
plan until you reach the age of 25 (so long as your
parents choose to keep you on the plan).
 If you go to college or start working, it is a
good idea to have health insurance.

7. Health InsuranceHealth Insurance
 If you are not on your parent’s plan,
you may be able to get health
insurance from:
– Your college (many offer student
health insurance plans)
– Your employer (many employers offer
their employees health insurance plans)
– Organizations (some organizations offer group health insurance
plans)
– Private carriers (remember to shop around to get the best price
possible)
– Healthcare.gov through Affordable Health Care Act

8. Life InsuranceLife Insurance
 Life insurance helps make sure a family has enough
money if a primary wage earner dies.
 It is important to have life insurance if you have family
members or other people who depend on you for money.
 When you buy life insurance, you decide who your
beneficiaries will be.
 Beneficiaries are the people the insurance money will go
to when the person covered by the policy dies.

9. Homeowners InsuranceHomeowners Insurance
 When you buy a house, keep in mind that insurance is
an expense in buying that house. Your lender will
require that you have homeowners insurance.
 Homeowners insurance won’t cover everything.
 You will need to evaluate your situation and decide if you
need additional coverage, such as flood insurance,
windstorm insurance, earthquake insurance, etc.

10. Homeowners InsuranceHomeowners Insurance
 Homeowners insurance also covers your personal
property, such as furniture and clothing, and will pay for
injuries to other people that occur at your house.
 The amount of coverage depends on your policy, so
make sure to buy the coverage you want and need!
 If you rent instead of own your home, you will want to get
renters insurance. Renters insurance covers your
personal property if your rented home is damaged or if
you property is stolen.

11. Disability InsuranceDisability Insurance
 Disability Insurance is purchased by someone who is
working a job.
 Disability Insurance covers a percentage of a person’s
wages should they be unable to work for at least a
month due to an accident or major health event.

12. Other Lines of InsuranceOther Lines of Insurance
 Pet
 Commercial (coverage for
Businesses)
 Title (for real estate)
 Jewelry
 Boat

13. Remember!Remember!
 Companies charge different rates, even for similar
coverages. It pays to shop around!
 Having insurance does not get you off the hook! You
may still be liable (responsible) for paying for damage
or replacements.
 Insurance costs money and requires financial
responsibility!