HLI - Health and Life Insurance Overview
Health and Life Insurance
Introduction
We have explored different types of insurance policies such as auto insurance and home insurance. These policies insure your car and your house in case of an emergency or a disaster. But, what if something were to happen to you? A very important decision for an adult is to decide on health and life insurance. Health insurance covers your costs if a medical emergency were to happen, and life insurance covers those closest to you if something fatal were to occur. Both of these types of insurance can be costly! Let’s look into the factors that go into the cost of healthcare and the risks associated with these plans.
Lesson Preview
In this module, we will study the following topics:
Health Insurance: Learn about the way premiums are calculated and how your benefits work.
Life Insurance: Take a look at the terms and factors that go into calculating your life insurance premium.
Predicting Outcomes: Explore the probability and statistics that go into assessing the risk of insuring an individual.
Life Expectancy: Discover the way life expectancy and mortality rates are factored into your life insurance quotes.
Key Terms
The following key terms will help you understand the content in this module.
- Beneficiary - person who receives the payment of the amount of insurance after the death of the insured
- Coinsurance Clause - tells the insured the percent of the expenses that they are responsible for paying after they have paid the deductible
- Deductible - an amount of the bill that you have to pay first and then the insurance company will pay the percentage for which they are responsible
- Health Insurance - insurance against the risk of incurring medical expenses
- Hospital Insurance - pays most of the cost of hospitalization, room and laboratory tests
- Liability – any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence
- Limited-Payment Life Insurance - covers the insured for their entire life; has a cash value and a loan value; premiums are paid only for a specified number of years or until the insured reaches a certain age
- Major Medical Insurance - protects you against the other costs of a serious and expensive illness
- Surgical/Medical Insurance - pays your doctor's fee for surgery, up to a certain amount
- Term Life Insurance - provides coverage at a fixed rate of payments for a limited period of time, the relevant term
- Uninsured – people without insurance or preventative care
- Universal Life Insurance - a combination of life insurance and a savings plan; it covers the insured for their entire life; if the insured pays more than the minimum premium, then the coverage goes into a savings account
- Whole Life Insurance - insurance that covers the insured for their entire life; the premium paid usually remains the same each year
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