Chapter 24 Family Protection and Security

testimonial

an endorsement of the product by a famous person

whole life insurance

cash value insurance

universal life insurance

combines both term and cash value policies

basic medical insurance

covers the cost of hospital expenses such as room, board, and nursing services.

estate`

the sum of all your personal property, including savings, investments, and insurance benefits

policy

a contract between the insurance company and an individual

premium

fee charged by the company to assume a financial loss that is described in a policy

fraud

intentional trickery, lies, or misrepresentation

bbb

nonprofit organizations sponsored by private businesses.

small claims court

part of the court system designed to handle legal differences over small money amounts

group health insurance

polices that are available through employers, unions, and professional associates.

term insurance

policy insures your life for a set number of years.

major medical insurance

protects the family against large losses due to a major illness or serious injury

face value

the largest amount the company will pay for a loss

liability

the legal responsibility for another person's financial costs due to a loss or injury

trust

the permits that allows transfer of property or income from you to a second group for the benefit of the beneficiaries.

deductible

when a person has to pay an amount equal to the deductible before the insurance pays any of the loss.

guaranteed replacement value

when the company replaces the item even if the cost of the new item is higher than the face value of the policy