Insurance
When considering disability plans, look for a plan that covers _________ of your income.
65%
What does having 80/20 coverage mean?
After a deductible has been paid, Insurance pays 80%and you pay 20%
The recipient of assets passed on from the death of a friend or relative
Beneficiary
Which of the following policies would be a duplicate coverage for your health insurance policy
Cancer and hospital indemnity insurance
An amount of money you pay to help cover a portion of your medical costs
Co-payment
Which of the following statements about disability insurance is false?
Disability insurance is not necessary if you have a good health insurance policy.
Which of these options is NOT a type of insurance?
Educational
The time between the disabling event and the beginning of payments in your disability coverage is called:
Elimination period
Disability Insurance offered through your employer is usually the most expensive coverage option.
False
If you are 45 years old, you should get long-term care insurance.
False
If you're renting a house or apartment, you only need renter's insurance for the first four months.
False
It is cheaper to buy long-term disability insurance from the open market from your employer.
False
Life insurance is a permanent need.
False
Life insurance is designed to pay off all of your debt at the time of your death
False
When shopping for insurance, use a(n) ______________ agent who shops a bunch of different companies to find the best rate for you.
Independent
You can keep your car insurance low by:
Not filing claims for smaller repair, instead pay cash
Specific amount of money that you pay when insurance only covers a portion of costs
Out-of-pocket expense
The amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
Premium
What is the most expensive time of your life?
The last 6 months
A person becomes self-insured when:
Their kids are grown, they have no debt, and they have fully funded retirement
Purpose of insurance is to:
Transfer financial risk
Any kind of duplicate insurance coverage is a bad idea.
True
Comprehensive coverage takes care of damage to your car that is caused by a collision.
True
If your coverage includes an extended replacement cost, you need to update your plan at least once a year.
True
You have a 1 in 3 chance of becoming disabled for 6 months or more at some point in your life
True
Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?
You lose your phone
Which of the following is not a benefit of having a will?
You only need a will if you have a large estate.
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
claim
After high school, you should have the following types of insurance: auto, renterʹs, health and long-term care insurance.
false
The purpose of insurance is to transfer
risk