Personal finance
The 7 Main Types of Insurance-
Auto
Housing
Life
Health
Travel insurance
Long - Term Care insurance
Disability Insurance
Insurance Purpose-
The purpose of insurance is to transfer risk. It aims to reduce financial uncertainty and make accidental loss manageable.
A system in which a large number of people purchase insurance as a group to lessen the cost of coverage.
Policy limit example-
For example, A house insurance policy might have a policy limit of $400,000 this means that if someone's house is damaged in a fire, the insurance company will only pay up to $4000,00 in claims.
Co-Pay Example-
A policy might have a co-pay of 30 for specialist visits; this means every time someone goes to a specialist, like a dermatologist or cardiologist, they have to pay $30 out of pocket, and the insurance will cover the rrestt
Deductible example-
A car insurance policy might be deductible for $500. This means that if someone gets into an accident and their car is damaged, they have to pay $500 out of pocket before the insurance will step in and pay the rest.
Premium example-
Lastly, a life insurance policy might have a premium of $300 per year. This means that the person must pay $300 each year to the insurance company in order to keep the policy active.
Affordable Care Act/Obamacare- The U.S government passed a law called the Affordable Care Act (ACA) in 2010. The ACA made a lot of changes to the health insurance market to make it easier for people to get insurance and to improve the quality of care.
Types of Health Insurance-
Individual health plans
Government- Provided Health Plans
Employer- Provided Health Plans
Individual Health Plan- Individual health plans are insurance policies that you buy on your own, instead of getting them through your job or the government. Typically,y they are private insurance, but there are programs through ACA.
Employer-Provided Plan- Many people get health insurance through their jobs. Employers usually pay part of the premium, so these plans can be more affordable than individual plans.
Government-provided Health Plan-
Government-funded health insurance plans are programs that help people get the medical care they need.
EXAMPLES:
Medicaid helps low-income families and individuals get access to doctors and hospitals
Medicare is for people who are 65 and older, or have certain disabilities.
CHIP stands for Children's Health Insurance Program and provides coverage for kids whose families earn too much money for Medicaid but not enough to afford private insurance.
Tricare is a health benefit for active military members, their families, and retired veterans, making sure they get the healthcare they deserve for serving our country.
AGE, HEALTH, JOB LOCATION, LIFESTYLE
Investment includes, but is not limited to, real estate, stocks, collectibles, bonds, and cryptocurrency.y
A stock, also known as equity, is a security that represents the ownership of a fraction of a company. Units of stocks are called shares.
IPO- Initial public offering, when a company offers new shares of stock to investors, and the stock is listed on a public stock exchange.
New York Stock Exchange (NYSE):
The oldest and largest stock exchange in the United States. The New York Stock Exchange is located on Wall Street in New York City and is the largest equities-based exchange in the world.
Dividend- A dividend is a distribution of a company’s earnings to eligible shareholders.
A sum of money paid regularly, typically quarterly, by a company
Stock Split- A company splits one share into multiple shares, which lowers the price per share without changing the company's market value.
Supply and demand- If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be a greater supply than demand, and the price would fall.
Stock prices are driven by a variety of factors, but ultimately, the price at any given moment is due to the supply and demand in the market.
Two types of stock Options-
Call: A call option is a contract between a buyer and a seller to purchase a certain stock at a certain price up (Increase) until a defined expiration date. The buyer of a call has the right, not the obligation, to exercise the call and purchase the stocks at a specified price (the strike price).
Put: A put option gives the buyer the right, but not the obligation, to sell the put at a specified price (the strike price) before the option's expiration date.
New bitcoins are added by a process called mining. This process is complicated, but in simple terms, Bitcoin mining is when computers solve mathematical equations, and as a reward,d they get Bitcoins.
What is a credit?
Credit is the ability to obtain goods or services before payment with the faith (principal) that the payment will be made in the future.
Principle: The money you must repay.
In most cases, there is a charge for borrowing, and these come in the form of fees and/or interest.
Interest: The charge for borrowing money.
What affects credit?
Payment history: 35%
Length of credit history: 15%
Amounts Owed: 30%
Credit Max: 10%
New Credit: 10%
A good credit score can impact multiple areas of your life Your ability to rent or buy a house
Job opportunities:
Loans
Leasing and Owning a Car
Obtaining more credit
Credit score,e akaFICOO Score
The FICO credit score ranges from 300 to 850, with lower scores representing higher credit risk. A good credit score is generally considered to be anywhere from 690 to 850 being an excellent credit score.