5.02

Understand risk management and Insurance

Types of Insurance

Health Insurance

Hospital Insurance- Classified as medical insurance. Covers for most or all of the charges during a stay in the hospital.
Surgical Insurance- Covers all or part of the surgeons fees for an operation.Health Insurance Coverage.
Regular medical Insurance- Covers fees for nonsurgical care given in the doctors office, the patient's home, or a hospital. Major medical insurance. Covers cost of extended and specialized care out of the hospital such as medicine and special nursing care.
Comprehensive Medical Policy- Combines the features of hospital, surgical, regular, and major medical insurance. Most common group health insurance policy.
Dental Insurance- Contains deductible and coinsurance to reduce the cost of premiums. Covers examinations, X-rays, cleaning and filling, dental injuries resulting fromaccidents, and dental work such as crowns or bridges.
Vision Care Insurance- Covers eye examinations, prescripition lenses, frames, and contact lenses. Some plans cover the cost of laser eye surgery that eliminates the need for glasses.

Life Insurance

Permanent Life Insurance- Lasts a lifetime as long as premium is paid. Builds cash value through an investment feature.
Term Life Insurance- Least exspensive form of life insurance. Its the only life insurance without savings and investments.