Business and Personal Finance © 2007Chapter 14:
Health, Disability, and Life InsuranceChapter Summaries- Health insurance is important for financial planning because it can help protect against the financial burden of illness or injury.
- Health insurance policies have certain similarities but can differ in terms of reimbursement versus indemnity, internal limits versus aggregate limits, deductibles and coinsurance, and out-of-pocket limits.
- Private health care plans are offered by private insurance companies, hospital and medical service plans, health maintenance organizations, preferred provider organizations, home health care agencies, and employer self-funded health plans. Government health care programs are Medicare and Medicaid.
- Disability insurance provides regular cash income for people who are unable to work due to pregnancy, a non-work-related accident, or illness.
- Sources of disability income are workers' compensation, an employer, Social Security, and private disability insurance.
- Types of life insurance policies include term insurance, whole life insurance, group life insurance, credit life insurance, and endowment life insurance.
- The key provisions in a life insurance policy include naming a beneficiary, an incontestability clause, a suicide clause, and policy riders.
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