Fin Lit- Insurance and Paying for college

Policy/Policy holder

contract for a specific term, customer called policy holder

premium

payments to insurance company

deductible

how much the customer has to pay out of pocket before the insurance company pays for the rest of it

claim

request by the customer for payment after the accident

risk

chance of personal or financial loss

liability

the portion of an insurance policy that protects you and others when you are found responsible for damage to the property of others

medical/ personal injury protection (PIP)

the portion of an insurance policy that covers medical expenses for persons injured in your vehicle.

Uninsured motorist/ Underinsured

covers lost wages and medical costs if you are in an accident with a driver without car insurance

Collision Insurance

insurance coverage for your vehicle hitting another car/object

Comprehensive physical coverage

coverage for damage other than an accident, such as weather damage, theft or vandalism or **hitting a deer.**

Optional coverages

towing, emergency and road service; “wage loss” insurance for missed work following an accident; rental car reimbursement coverage

Dwelling coverage

pays if your house is damaged or destroyed by something your policy covers.

Personal Property coverage

pays if your furniture, clothing, and other things you own are stolen, damaged, or destroyed

Other structures coverage

pays to repair structures on your property that aren’t attached to your house. This includes detached garages, storage sheds, and fences

Loss of use coverage

pays your additional living expenses if you have to move while your house is being repaired to fix damages your policy covers. Additional living expenses include rent, food, and other costs you wouldn’t have if you were still in your home

Personal laibilty coverage

pays medical bills, lost wages, and other costs for people that you’re legally responsible for injuring. It also pays if you’re responsible for damaging someone else’s property. It also pays your court costs if you’re sued because of an accident

Personal Possessions

This coverage is for the contents of your rented dwelling

Liability

Liability coverage protects you up to a certain amount in the event that you get sued for an injury or other damages incurred at your home by other people. It also pays for damage that you, your family, or your pets cause to others. It pays any court judgments as well as legal expenses

Where is health insurance available

employer plan, direct purchase, marketplace, medicare, medicaid

Copay

a flat fee payed by customer, prior to service, to insurance company

Coinsurance

a percentage of a healthcare service is payed by customer the rest by insurance company

Life insurance

where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person

Disability Insurance

form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier for completion of core work functions

Business owners insurance

combines two types of coverages to protect your small business against a variety of claims

FAFSA

FAFSA is a form that is filled out when applying for financial aid. FAFSA stands for free application for federal student aid

The order in which financial aid should be considered is : Scholarships, work-study, federal loans, private loans.  Scholarships/Grants

Scholarships/grants -> work-study -> federal loans -> private loans

What are the costs of going to college besides tuition?

Besides tuition you have to pay for food, housing, transportation, school supplies (textbooks, computer ect.)

Financial Aid letters from colleges - are they standardized?  What do they tell you?

Financial aid letters from colleges tell you how much aid the school is giving you, the amount of scholarships they are giving you and if they are giving you subsidized loans or unsubsidized loans or work-studies. They are standard to be sent but they may look different college to college and often are misleading and confusing.

What is the difference : Sticker price vs Net Price

The sticker price of a college is the advertised price of college without aid and scholarships taken off. The net price takes into the amount of aid and scholarships and subtracts it from the sticker price.

Direct Unsubsidized vs Direct Subsidized: when does interest start to accrue

In Direct unsubsidized loans interest starts to accrue while you are still in school while in subsidized loans the interest starts after school. 

What are the differences between federal student loans and private loans?

Federal student loans typically have lower interest rates than private loans. 

How can you reduce the amount paid in student loans

You can reduce the amount paid on your student loans by paying off the loan in a shorter amount of time that way you pay less interest on the loan. 

Standard repayment plan, Graduated repayment plan, Income based repayment plans-know the difference, benefits, and drawbacks of each

Standard repayment plan is when you pay the same amount of money each month for 10 years. Graduated repayment plan is when the amount you pay increases each month for 10 years. This is beneficial when you are first leaving college because when your income is lower you'll have to pay less. Income based repayment plan is when your income and loan payments are tied, so 10-25 percent of your paycheck goes directly into paying off your loans. This typically takes longer but you won't have to worry about forgetting payments.

Public Service Loan Forgiveness : what is it, to whom is it available, how does it work

Public loan forgiveness is when some who are working in public service loans are forgiven. This is only available if they make 120 on time payments