Insurance and Health Insurance Basics

Study Notes

Provides financial protection against medical expenses
Covers hospitalization, surgery, doctor visits, and prescription medication
Types:
- Individual plans
- Group plans (employer-sponsored)
- Government-subsidized plans (e.g. Medicaid, Medicare)
Key features:
- Premium (monthly payment)
- Deductible (out-of-pocket expense before coverage kicks in)
- Co-pay (fixed amount paid per doctor visit or prescription)
- Co-insurance (percentage of medical expenses paid by insurance)

Provides financial protection against car-related accidents or damages
Covers:
- Liability (bodily injury, property damage)
- Collision (damage to own vehicle)
- Comprehensive (theft, vandalism, natural disasters)
- Personal injury protection (medical expenses)
Key features:
- Premium (monthly payment)
- Deductible (out-of-pocket expense before coverage kicks in)
- Coverage limits (maximum amount paid per accident)

Provides financial protection against legal claims or lawsuits
Covers damages or injuries caused to others
Types:
- Professional liability (malpractice insurance)
- General liability (business operations)
- Umbrella liability (excess coverage beyond policy limits)
Key features:
- Policy limit (maximum amount paid per claim)
- Deductible (out-of-pocket expense before coverage kicks in)

Provides financial protection against unexpected events during travel
Covers:
- Trip cancellations or interruptions
- Medical emergencies
- Lost or stolen luggage
- Travel delays
Key features:
- Policy coverage period (duration of trip)
- Policy limit (maximum amount paid per claim)
- Deductible (out-of-pocket expense before coverage kicks in)

Provides financial protection against medical expenses
Covers hospitalization, surgery, doctor visits, and prescription medication
Types of health insurance:
- Individual plans
- Group plans (employer-sponsored)
- Government-subsidized plans (e.g. Medicaid, Medicare)
Key features of health insurance:
- Premium (monthly payment)
- Deductible (out-of-pocket expense before coverage kicks in)
- Co-pay (fixed amount paid per doctor visit or prescription)
- Co-insurance (percentage of medical expenses paid by insurance)

Provides financial protection against car-related accidents or damages
Covers:
- Liability (bodily injury, property damage)
- Collision (damage to own vehicle)
- Comprehensive (theft, vandalism, natural disasters)
- Personal injury protection (medical expenses)
Key features of auto insurance:
- Premium (monthly payment)
- Deductible (out-of-pocket expense before coverage kicks in)
- Coverage limits (maximum amount paid per accident)

Provides financial protection against legal claims or lawsuits
Covers damages or injuries caused to others
Types of liability insurance:
- Professional liability (malpractice insurance)
- General liability (business operations)
- Umbrella liability (excess coverage beyond policy limits)
Key features of liability insurance:
- Policy limit (maximum amount paid per claim)
- Deductible (out-of-pocket expense before coverage kicks in)

Provides financial protection against unexpected events during travel
Covers:
- Trip cancellations or interruptions
- Medical emergencies
- Lost or stolen luggage
- Travel delays
Key features of travel insurance:
- Policy coverage period (duration of trip)
- Policy limit (maximum amount paid per claim)
- Deductible (out-of-pocket expense before coverage kicks in)