Protecting your assets

Life is full of risks and uncertainties. That is why people buy insurance that will protect themselves, their families and their property. Of course, the decision to purchase insurance involves weighing the costs and benefits.

If your home is damaged by fire or a storm, having insurance would help pay for repairs.
If you become sick, having health insurance will help pay your medical costs.
Insurance that people elect to buy is private insurance.

There are Social Insurance Programs provided by the government that also protect individuals and their families against hardships and uncertainties such as unemployment, disabilities, retirement, health care, and death of a family’s wage earner.

Social Insurance is required by state and federal laws, and it is, therefore, mandatory that individuals and businesses (employers) pay for these programs.

Type of insurance	What it protects
Health insurance	Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured.
Auto insurance	Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft.
Life insurance	Life insurance is a contract between an insurer and a policy holder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death fo the insured.
Property insurance	Property insurance is a broad term for a series of policies that provide either property protection coverage (such as damage from natural disasters or fire) or liability coverage.
Disability insurance	Disability insurance will provide income in the event a worker is unable to perform their work and earn money due to a disability.
Long-term care insurance	Long-term care insurance is coverage that will pay for assisted living, nursing home care or home healthcare in the event you are unable to care for yourself because of a chronic condition or disability.
Government provided insurance	The US government funds a number of insurance plans paid for by taxpayers: Medicare, Medicaid, Children's and Veteran's healthcare, Unemployment insurance, Social Security including Disability.

How insurance works

It is important to become informed about insurance types and costs.

Choosing insurance will require a financial commitment on your part and you want to make sure the costs are affordable.
You can keep costs low by engaging in behavior that protects against risk. For example, a clean driving record will lower the cost of your car insurance.

Buying insurance is basically a contract that we enter with an insurance company, e.g. Geico, State Farm, Prudential and many others.

We purchase an insurance policy and pay the insurance company fixed PREMIUMS over time in order to maintain insurance coverage.
Payments to maintain your insurance policy would be a fixed expense in your budget.

Let’s say you buy auto insurance (mandatory for car owners in many states). Each month you would pay the insurance company a certain amount of money to insure your car and to cover you as a driver.

If you get into an accident, the insurance company will pay for your loss in that situation. That could mean paying for repairs to your car or someone else’s car. It could mean paying for damaged property.
Very often, there will be a DEDUCTIBLE associated with your policy, that the insurer will require you to contribute toward the overall cost.

Ultimately, the insurance company wants to make money on your policy. So, they want to collect your premiums and hopefully not have to pay any money out.

The amount of your premium is based on a determination by the insurance company of how much of a risk you are.
It is always the case that when an insurance company needs to pay out on your policy, your premiums will likely go up.

Major insurance companies sometimes have millions of policyholders who pay premiums, but only a small percentage might ever receive a payment for a loss.

This is how they can take in relatively small amounts of money from individual consumers for premiums and yet pay out very large sums if an accident or other hardship occurs.

Protecting who you are

IDENTITY THEFT is a growing problem in the U.S. and worldwide affecting millions of people every year. Thieves can steal critical information about you, like your name, address, telephone number, bank account, or credit card numbers, and—most dangerous—your Social Security number.

Although individuals probably cannot entirely prevent this theft, risks can be minimized by being vigilant and careful about protecting your personal information, especially when using computers and smartphones.

Steps to protect your identity

Safeguard your personal records by tearing up or shredding sensitive materials such as credit applications or credit offers, insurance forms, tax information medical statements, bank statements, expired credit cards.
Don't put personal information online, like your birth date, on a computer home page, personal computer profile, or social media website.
Never provide personal or financial information unless a website site is secure. (Look for a security symbol such as an unbroken padlock and a Web browser that starts with “https” rather than simply “http.” Right-click the padlock to make sure it’s up to date.)
Carry only the personal information that you need on a regular basis; leave the rest at home in a safe place.

Never carry around your social security card and give out your number only when absolutely required.
Use different complex passwords and change them regularly.

Avoid using personal information as a password or number sequences.

Protecting your computer

Avoid scams

For example, if you get a supposed IRS email asking for personal or financial information, delete it or send it to the IRS at phishing@irs.gov for investigation. The IRS never initiates contact with taxpayers by email, text messages, or social media.

Don't be fooled by links to what looks like the real IRS website—that too could be a fraud.

If You're a victim of Identity Theft, visit identitytheft.gov Also, keep an eye on your credit report and respond to any inaccurate information. It’s always a good idea to file your taxes early—as soon as you can—before a scammer does.

Tips to protect your computer

Use a firewall and secure browser.
Don't download files from strangers.
Maintain current virus protection.
Password-protect any personal or financial information.
Avoid automatic log-in processes (which store your account name and password).
When you dispose of your computer, delete personal information and completely overwrite the hard drive.

Resources for learning more about insurance

Protect your identity

Never give out personal information without knowing the reason and with whom you are dealing. Once someone gets your personal information, you may be in danger of identity theft.

Identity theft is when someone uses your personal information (your name, Social Security number, bank and credit card account numbers, address) to steal from you or create new accounts in your name without your permission. Identity theft can ruin your credit.

How do thieves steal identities?

They steal wallets, purses, and briefcases to gain access to your credit cards, driver's license, passport, and other personal documents.
They look for personal data by going through your trash. This is also known as• dumpster diving.
They steal your mail, including your bank statements, pre-approved credit card offers, new checks, and tax information.
They pose as legitimate companies or government agencies to get your personal information.
They use personal information that you shared on the Internet. Through an e-mail attachment that you open or download, they could release a virus on your computer. The virus acts as a spyware program that records what you type and the Web sites you visit and allows the thief to acquire your personal information.
They are sometimes someone you know, such as a roommate, relative or friend because you may share your information with them without knowing they will use it for other purposes.

Identity thieves commit fraud or theft once they have your personal information. Some examples:

They withdraw money from your bank accounts.
They open a new credit card account in your name and run up charges. This can lead to overdue credit card payments appearing on your credit report.
They apply for a loan in your name and take the money. This can lead to overdue loan payments appearing on your credit report.
They buy a car by taking out an auto loan in your name.
They may give your name to the police during an arrest and if you don't show up for the court date, a warrant for arrest can be issued in your name.
New accounts appear on your credit report. Note: You are entitled to one free credit report each year from www.annualcreditreport.com.

Some signs that your identity has been stolen.

There are unexplained withdrawals and charges on your statements.
You haven't received your bills, statements or other important mail in a long time.
You've received calls from debt collection agencies about products or services you qidn't buy.

My identity has been stolen. What should I do?

Step one:

• Place a fraud alert on your credit report with one of the three major credit bureaus.

Equifax (397-37 42)

P.O. Box 740241
Atlanta, GA 30374-0241
Phone: 1-800-525-6285
Web site: https://www.equifax.com

Experian

P.O. Box 9532
Allen, TX 75013
Phone: 1-888-EXPERIAN
Website: www.experian.com

Trans Union

Fraud Victim Assistance Division
P.O. Box 6790
Fullerton, CA 92834-6790
Phone: 1-800-680-7289
Web site: www.transunion.com

Step two:

• Continue to check your credit report regularly to make sure no new fraudulent activity has occurred.
• Close all fraudulent accounts.

Step Three:

• File a police report.

Step four:

• File your complaint with the Federal Trade Commission (FTC).
• Submit an online complaint.
• Call FTC's Identity Theft Hotline toll-free:
1-877-ID-THEFT (438-4338);
TTY: 1-866- 653-4261

Mail your complaint to:

Identity Theft Clearinghouse
Federal Trade Commission
600 Pennsylvania A venue, NW
Washington, DC 20580

Thieves can be quite sneaky when it comes to finding ways to steal your identity.

Quick tips to protect yourself and your money.

Don't give out personal information to someone you don't know.
Monitor your statements and check your credit report.
Shred important documents.
Protect your credit and debit cards.
Protect the information you enter in a computer.
Create complex passwords and change them regularly. Remember: If your password or PIN# falls into the wrong hands, you may be in danger of identity theft.