1. What is a deductible? How does a deductible affect insurance?
The amount the person who lost something will pay before the insurance company will pay for the loss. If you have a high deductible and a low premium, then you will have to pay more of a deductible to get the insurance to pay the rest. There is some insurances that have high premiums and lower deductibles. This means that you’ll pay more to insure the object and less when it is actually lost and needs replacing.
2. What is risk classification?
Risk classification is what will most likely be the problem you’ll have. For example if you live by water then flooding. Another example is that if you live on a hill you could possibly have a mudslide.
3. What are riders? How do they affect
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This is important because if you do want to be kept on life support there is a chance that you could get better. A will is if something was to happen to you then your stuff will go to the people you put down to have. The reason why it is important is if you have a child who can’t support themselves then they will have money and help them through life.
Critical Thinking Questions
1. What is the relationship between insurance and successful financial management? Why is insurance important?
Insurance is important because if you buy something and it ends up being lost then you can get it back and not waste your money on it. If you lose something and don’t get it back, then you just lost a bunch of money. This is also the relationship between insurance and successful financial management. You have to make sure you don’t lose money and save and plan.
2. Consider your home and possessions. What types of risks do you face? What insurance would you recommend to someone in a similar location?
My house would probably have maybe theft or storms. I think that my neighbors would have the same thing because we don’t really have any other environmental issues that would cause insurance to step in.
3. What are personal, property, and liability risks? What are examples of personal, property, and liability
Once I explained exactly what a living will is because some were unaware they were very comfortable with the idea of filling out a living will. The responses that I got all varied to different degrees. My brother stated that he did not yet have a living will but that they are very important to have and everyone should get one. He said that his wishes would be to pretty much “pull the plug in every circumstance”. He absolutely did not want to be put on life support, be artificially supplied with food, or get life sustaining drugs, machines, or other medical procedures. My mother had wishes the same as I would have which is to consider the circumstances and give me a month to evaluate if I have the possibility of making a full recovery. If there is no hope of having a full recovery then I want all life sustaining measures to be stopped because I don’t in any way want to be a burden on
As we get older and delve into the real world, it is important to start thinking about end-of-life care and advance directives. Although it is something no one wants to imagine, there is an absolute necessity for living wills and a power of attorney. Learning about the Patient Self-Determination Act and the different legal basis in where you live is important because it will help people understand why advance care directives are so important. Although there are several barriers in implementing advance care directives, there are also several actions that healthcare professionals can take to overcome these obstacles. These are also important to know about, especially for someone going into the medical field.
A deductible is how much money you have to pay out of pocket before your insurance will pay for the rest. Let's say you total your car, your insurance may ask that you pay off 1,000$ worth of the damages before they pay. Though there is no universal amount that you have to pay, it fluctuates with what insurance you have. It typically fluctuates on how expensive the insurance is. If you have a more expensive insurance the deductible will usually be lower, rather than higher like someone with a lower expense insurance. Even if you have a high deductible you are still able to negotiate with the insurance company to get a lower deductible.
Many individuals receive car insurance that is lower than if they were to have a truck. Car insurance tends to have a lower rate simply because cars can’t do as much damage. One other reason car insurance can be less costly, is that depending on the car, it doesn’t cost as much to replace if a claim is filed. Although with insurance, this can also vary with age and gender as well.
Later, another panel member argued that the purpose of health insurance is not to insure everyone. It should be provided to only cover catastrophic health conditions. Today, not only does health insurance cover catastrophic events, but also there are limits on the amount of out-of-pocket health care costs for essential health care (The White House, 2016). Also, most out-of-pocket costs have been eliminated for preventative care (The White House,
Factors such as lost or damage of lives, property, financial districts, and necessary needs are considered in which determines the hazards that pose the most threat to specific location.
There are several advantages of purchasing health insurance for employees. The first one is that it helps an organization to recruit the best employees and retain them (Editors of Salem Press, 2014). There are several benefits that an employee gets when the company pays for medical bills. This makes the company more attractive to other potential employees and thus enabling the company to recruit the best and retain those already employed. When employees are offered insurance, they tend to be happier and more comfortable at work and therefore creating a good working
flood insurance may be a requirement. Any community that participates in the National Flood Insurance Program (NFIP) is zoned into 4 primary categories which include 'undetermined risk areas', 'high risk - coastal areas', 'high
While I do not have a terminal illness, I have a chronic illness and with all illnesses come complications. Many of these complications are solved through quick emergency room visits or an adjustment to my medications, but I am aware that it could be much worse. It is very important that I write up a living will so that if there was a major complication with my illness and I was unable to make medical decisions for myself in the moment, my wishes would still be known and carried through. I am very adamant that I do not stay on life support machines if there was not a chance that I survive without them. I also am very adamant that my family should not have to make the decision whether or not I stay on life support. I’ve seen too many people I know go through having to make that decision for their loved ones to wish that on mine. So instead, I will take that burden off of them and decide now while I still am able to express my
Life insurance is legally enforceable contract issued by insurer based on the payment of premiums. The well understanding the legal aspects of the life insurance contract will give a further benefits to insured as well as beneficiaries to impose their rights to the insurance contract. Insurance contract include insurer, insured, policyowner, and beneficiary. Insurer must be licensed in each states. Although insurer is the first party of the insurance contract, their power enforcing to insured is limited by the state law. Insured and policyowner is not always but can be a same person. For example, when parents want to insure their children, policyowner and beneficiaries will be either parents. At the event of insured’s death, the policy of the
Home insurance is meant to protect you in a total loss situation, such as a fire or natural
One of the most harrowing experiences in my life was Superstorm Sandy. I remember looking out of my window and seeing the sidings of my house hit my car. The eerie noises of the storm kept me up all night. And the prolonged power outage that accompanied the storm took away simple every day necessities such as heat, lighting, and the internet. My house did not face many physical damages. A few sidings on the face of the house were torn off and a few of our trees in the back yard had broken and fallen to the ground. The interior of our house was not affected at all by superstorm Sandy. All of our neighbors had flooded basements which ravaged their belongings. My neighbors were devastated by the damage that water flooding had caused them. They lost many old family photos that were not digital and could never be replaced. A few of my neighbors have finished basements. Their basements consisted of items such as TVs, stereo systems and many other expensive gadgets. All of these expensive items were damaged by the water flooding. Along with these items, the water damage in the basements caused many of my neighbors thousands of dollars in repairs for wet walls and wet carpets that needed to be replaced.
If it’s more than two claims, your premium might be twice as expensive as someone who hasn’t filed claims. We realize accidents happen, but if you can maintain your home and avoid claims, you’ll be much better off in the long run. Factors affecting your premium regarding your home include: • Cost - The cost to replace or rebuild your home, which isn’t the same as the purchase price. • Material –
Risk is the potential loss resulting from the balance of threat, vulnerabilities, countermeasures, and value. ...
Reinsurers are important and vital players in the insurance market as a whole, as they help insurers offer --at affordable prices to clients.