personal finance test 2 (chapter 9)
so sophisticated high malpractice costs no incentive to economize
3 reasons why health care is so expensive
HEALTH INSURANCE DECISION TREE
HEALTH INSURANCE DECISION TREE
WHAT IS CURRENTLY GOING ON WITH OBAMACARE
LOOK AT NOTES
group life term
Sally Heath has the option of obtaining life insurance through her place of employment. She will not need to take a physical exam. This type of policy would be a/an ________ policy.
false
T/F with COBRA coverage, the employer pays the premiums
settlement options
The alternative ways that a beneficiary can choose to receive the policy benefits upon the death of the insured are called
30 days
The coverage grace period gives you an extension of generally ________ in which to make your premium payment without canceling your policy.
2 years
The incontestability clause states that the insurance company cannot dispute the validity of the contract after a specified period of time, usually ____________________________
grace period
The policy feature that allows you to pay the premium late but still retain coverage is known as the
loan clause
a clause that provides the right to borrow against the cash value of the policy at a guaranteed interest rate
whole life insurance
cash value insurance that provides permenant coverage and a death benefit when the insured dies. if the person turns 100, the benefit is payed out even if the person has not died
payment premium clause
defines how you will pay your premium payments. annual payments are usually the cheapest
cleanup funds
funds needed to cover immediate expenses at the time of your death
non forfeiture right
gives the policyholder the cash value of the policy in exchange for the policyholder giving up his or her right to a death benefit.
change of policy clause
gives the policyholder the right to change the form of the policy
transferring you insurance company
health insurance is about _________________ risk from __________________ to the __________________________
term insurance
insurance that pays the beneficiary a specific amount of money if the policy holder dies while covered by the policy
earnings multiple approach
method od determining how much life insurance you need by using a multiple of your yearly earnings
needs approach
method of determining how much life insurance you need based on funds your family would require to maintain their lifestyle should you die
policy reinstatement clause
policy that gives right to restore a policy to its full effect 3-5 years after the policy has expired
risk pooling
sharing financial consequences associated with risk in the insurance industry
beneficiary
the individual designated to receive the insurance policy proceeds upon the death of the insured
incontestability clause
the insurance company cannot dispute the validity of the contract after a specified period of time, usually 2 years
suicide clause
the insurance company wont pay off for suicide deaths that occur within the first two years of the contract
coverage grace period
the late payment method for premium during which the policy stays in effect and no interest is charged. if payments arent made, the policy can be cancelled after the grace period
insured
the person whose life is insured by the life insurance policy
affordable care act
was put in place to help provide health coverage for the millions of americans that do not have health insurance. with this in place 95% of americans will have health care