Insurance, An Overview

Note

Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann.

I highly recommend this book.

6 Major Risk Areas

1. Significant damage to your home

2. Major Lawsuits

3. Premature Death4. Long Term Disability5. Major Medical

Expenses6. Extended Long Term

Care

1. Homeowner’s Insurance

2. Umbrella Policy, other liability ins. (e.g., auto)

3. Life Insurance4. Disability Insurance5. Health Insurance

6. Long Term Care Insurance

Seven Guiding Principles of Insurance

1. Keep it simple2. Don’t risk more than

you can afford to lose3. Don’t risk a lot for a

little4. Consider the odds5. Risk a little for a lot 6. Avoid Las Vegas Ins. 7. Buy Insurance as a last

resort

1. Helps you understand2. “average” person will

buy health insurance3. Renting a speed boat4. Earthquake Insurance5. Collision ≠ modest

value6. Rush hour liability7. Grandma’s jewelry

Suability Factor based on

• Current and future income

• Current and future assets

Selecting an Insurance Professional

• Word of mouth• Credentials: CPCU, CIC, CLU, AAI

Choosing an Insurance Company

Financial Strength

www.ambest.com

• Read the FINE print in the policy!!!!!!!!!!!!!!!!!!

• Ask your agent questions!!!!!!!!!!!!!!!!!!!!!!!!!!!