Unit 8: Insurance

Question 1

Policy

Answer 1

Describes the type of coverage in an insurance agreement.

Question 2

Coverage

Answer 2

This applies to the amount of protection you have through an insurance company in the event of a loss.

Question 3

Premium

Answer 3

The amount you pay regularly to purchase different types of insurance.

Question 4

Claim

Answer 4

Filed with an insurance company whenever a person needs the insurance company’s services.

Question 5

Liability

Answer 5

Legal responsibility for an action.

Question 6

Out-of-pocket expense

Answer 6

The specific amount of money that you pay when insurance only covers a portion of costs (Co-pays, co-insurance)

Question 7

Deductible

Answer 7

The amount you must pay before you begin receiving any benefits from your insurance company.

Question 8

HSA

Answer 8

A tax-advantaged savings account that can be used to pay for qualified medical expenses.

Question 9

Homeowner’s Insurance

Answer 9

Damage to structure, liability coverage, damages/loss of belongings. (Accidents on property. Acts of war/God are not covered; hurricanes and tornadoes are covered.)

Question 10

Renter’s Insurance

Answer 10

Loss/damage of the holder’s belongings, injury/liability caused by the renter, and additional living expenses caused by loss/damage.
(Earthquakes and floods are not covered.)

Question 11

Auto Insurance

Answer 11

Damage to personal property, liability for damages/injury, and medical bills for those individuals.

Question 12

Health Care Insurance

Answer 12

Doctor visits, prescriptions and medications surgeries, medical procedures, physical therapy.
(Dental/eye insurance options available.)

Question 13

Disability Insurance

Answer 13

Replaces income lost due to short-term or permanent disability.

Question 14

Long-Term Care

Answer 14

Cost of retirement homes, assisted living facilities, and in-home care.
(Dave R.: recommends obtaining when you’re 60)

Question 15

ID Theft Protection

Answer 15

credit report monitoring and restoration services (clean up all false information and transactions)

Question 16

Will

Answer 16

Legal declaration of a person’s wishes regarding the disposal of their assets after death.

Question 17

Beneficiary

Answer 17

The recipient of assets passed on from the death of a friend or relative.

Question 18

Life Insurance

Answer 18

provides a payout to beneficiaries due to loss of life (Income replacement)

Question 19

What is the purpose of Insurance?

Answer 19

To transfer risk