Personal Finance Chapters 9 and 10

Question 1

how do most people get health insurance?

Answer 1

Through their employer

Question 2

what is the average co-pay?

Answer 2

$20 - $30

Question 3

deductible

Answer 3

amount you have to pay before insurance can pay the rest

Question 4

what are the governments two insurance programs?

Answer 4

medicare and medicaid

Question 5

medicare

Answer 5

for people older than 65

Question 6

medicaid

Answer 6

for people with low income, it covers everything

Question 7

workman’s compensation

Answer 7

money you get for being injured on the job

Question 8

Obama care/affordable care act of 2010

Answer 8

eliminates co-pay for preventative care and allows children to be on their parent’s health insurance until they are 26

Question 9

what are the 4 methods of estimating your life insurance

Answer 9

easy, dink, non-working spouse, family need

Question 10

easy

Answer 10

70% * 7 * income

Question 11

dink

Answer 11

(duel incomes, no kids) funeral + 1/2 debts

Question 12

non-working spouse

Answer 12

the age of your youngest child * 10,000

Question 13

HSA

Answer 13

a health savings account that lets you set aside pretax money for medical costs

Question 14

HRA

Answer 14

a health reimbursement arrangement is a health spending account provided and owned by an employer

Question 15

FSA

Answer 15

a flexible spending account, pre-tax

Question 16

beneficiary

Answer 16

people who get the money from your life insurance after you die

Question 17

why do people buy life insurance

Answer 17

to protect your family from financial loss

Question 18

term insurance

Answer 18

NOT permanent insurance

Question 19

annuity

Answer 19

fixed sum of money paid to someone each year, for the rest of their life

Question 20

cash value

Answer 20

a component in life insurance that grows tax-free over the course of the policy’s life

Question 21

double indemnity

Answer 21

under certain circumstances, you can get double the face amount of an insurance policy

Question 22

nonforfeiture clause

Answer 22

insurance policy clause that says an insured person can receive full or partial benefits after a lapse of nonpayment

Question 23

nonparticipating policy

Answer 23

does not pay dividends to the holder of the insurance policy

Question 24

participating policy

Answer 24

pays dividends to the holder of the insurance policy

Question 25

rider

Answer 25

an attachment added to a document in order to modify it

Question 26

whole life insurance

Answer 26

life insurance that pays a benefit on the death of the insured and also accumulates a cash value