Personal Financial Lit week 7

Why is it a good idea for consumers to know what is in the food and products they buy? Choose the five correct answers. Please do not guess, as incorrect answers are penalized for this question type.

1. Because some people are on special diets and need to know specific percentages of certain items 2. Because some people cannot have foods produced in plants that also process peanuts 3. Because some people are allergic to some foods, such as peanuts 4. Because caloric intake is important for some people to know 5. Because some people need low-sodium products

What different types of contracts might you see? Choose the three that apply. Please do not guess, as incorrect answers are penalized for this question type.

1. Cellphone agreements 2. Online contracts 3. Property rentals

Match the following information regarding equilibrium and supply and demand.

1. Demand increases and supply stays the same- Higher equilibrium price and higher quantity 2. The price moves toward a point where the quantity demanded is equal to the quantity supplied- Equilibrium 3. Demand decreases and supply stays the same- Lower equilibrium price and lower quantity

Match each kind of health insurance to the type of benefits and coverage that is provided.

1. HDHP: Features low premiums and high deductibles. Can be coupled with a health savings account to provide tax advantages. Correct match: 2. PPO/POS: Gives you a choice of what provider you would like to use. Cost is more for out-of-network providers, but generally referrals are not required to see a specialist. 3. HMO/EPO: Limits coverage to providers within the network; a referral is usually needed from the primary care physician to see a specialist. 4. Catastrophic plan: Has a high deductible, covers only essential health benefits, and simply provides a safety net for emergencies.

What are some of the things to consider when purchasing disability insurance? Choose the four correct answers. Please do not guess, as incorrect answers are penalized for this question type.

1. How does the policy define disabilities? 2. What dollar amount or percentage is promised? How are amounts affected by Social Security and other factors? 3. When do benefits begin being paid? 4. For how long do the benefits last?

Making Large Purchases When you want or need to purchase something that is a more expensive item, it is important to consider all the possible options when you cannot afford to pay cash (including by check) for the item. Here are some things to consider: How urgent is the need to purchase the item? If it is a furnace or refrigerator to replace, then that is more important than buying a new flat-screen Smart TV. What payment options are available? There are many different ways to pay for something when you don't have the cash. Consider the alternatives listed below.

1. Layaway - Stores will allow you to hold items in storage for a set amount of time while you make regular payments for a set time (90 days for example.) Sometimes there are fees, but often it is free if you make regular payments. 2. 90 Day Store Credit - Stores (especially furniture and mattress outlets) will allow you to purchase an item by putting some money down and agreeing to pay the remainder off within 90 days. If you go beyond 90 days, heavy penalties or high-interest payments are assessed against the buyer. This is also known as "90 Days Same As Cash." 3. Store Credit - Stores will extend credit on a purchase and set up minimum payments. Interest rates and fees are usually higher than credit cards or banks. 4. Credit Cards - Stores, banks, credit unions, and some employers offer credit cards with a set limit amount. The terms of various credit cards can differ greatly based on fees, interest rates, and grace periods. 5. Savings Account - Banks and credit unions will allow a consumer to set up a special account to save for a special or expensive purchase. One type of such an account is a Christmas Club. Money is automatically deposited into a savings account either through direct deposit, or withdrawn from another savings or checking account.

In considering purchasing products, what are some good guidelines to follow? Choose the six answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

1. Make sure you know the policies for returns and refunds. 2. Get opinions from friends and relatives who have bought similar products. 3. Shop around to compare different deals for the same item. 4. Make sure you know what the final price will be, including any extended warranty plans and fees. 5. Carefully read and make sure you understand any contract you sign. 6. Don't travel far to save a few cents on the exact same product.

Consumers have a right to a healthy environment. As a result, new laws and regulations have been enforced to create safer and healthier environments for all consumers. Choose the four statements below that support this effort. Please do not guess, as incorrect answers are penalized for this question type.

1. No smoking in restaurants 2. Stricter pollutant emissions ratings on automobiles 3. No smoking in public areas such as hotel lobbies and businesses 4. Exercise rooms and equipment for employee use at businesses

Some contracts offer the chance to use a cosigner. A cosigner is someone who applies for a loan with you and agrees to pay off the debt if you do not make payments. Be very cautious about becoming or using a cosigner on a loan or contract. A co-signature can legally bind both parties as responsible for whatever that contract demands. Co-signing can damage both credit scores and relationships.

1. Online Contracts (Including Apps)- You agree to online contracts when you sign up for streaming services such as Netflix and Hulu, and when you purchase and play online games. Even social media accounts will ask you to agree to certain terms before you may access their app. 2. Property Rentals- If you rent an apartment or condo, you will sign a rental agreement with the landlord. This agreement details the terms of the contract. 3. Cellphone Agreements- When you purchase a new phone through a major carrier such as Verizon or Sprint, you may be asked to sign a contract. This contract will ask you to agree to be a customer for a certain amount of months (usually 24 months while you pay for the phone.) 4. Mortgages- When you obtain a mortgage to purchase a home, you are taking out a loan with a financial institution. This financial institution (usually a bank) will ask you to sign a lengthy contract outlining the repayment expectations for the loan, including payment amount, length of the loan, and interest amounts.

Match each type of contract with its examples.

1. Online contracts- Streaming services such as Netflix and Hulu and online games 2. Rental properties- Apartments or condos 3. Mortgages- Buying a home 4. Cellphone agreements- Verizon, Sprint, or AT&T

Using the guidelines for spending covered in the lesson, choose all the tips below that can help you be a wise shopper. Choose the six answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

1. Pay cash for items that cost less than $5.00. 2. When you make a mistake with spending money, learn from your mistakes. 3. Be a good steward of all your money and possessions. 4. Track expenses so you will know where your money is going. 5. Consider all the purchase options and costs before buying something expensive. 6. Save money in special accounts so you are prepared for large expenditures.

You may think that homeowners insurance would cover any damage to your house no matter what. However, unless you have a special adjustment or federally sponsored insurance coverage, which of the following would NOT be covered by homeowners insurance? Choose the five answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

1. Roof leak caused by you installing a new skylight improperly 2. Termite damage to wood framing 3. Mudslide caused by new construction next door 4. Floodwater damage 5. Earthquake damage

Which of the following is covered by a homeowners insurance policy? Choose the three that apply. Please do not guess, as incorrect answers are penalized for this question type.

1. The primary residence 2. Connected or adjoining outbuildings 3. Contents of the home

Term life insurance policies are the least costly. They pay death benefits but have no cash value if you decide to stop making payments. As the word "term" suggests, these policies are in effect for a specific period of time-one year or until you reach a certain age are common. You can compare life insurance policies online. Whole life, universal life, and other cash-value policies combine a long-term savings and investment product with life insurance. Canceling these policies after only a few years can more than double your life insurance costs. Term insurance provides coverage for a predetermined period of time. Permanent life insurance offers coverage for an open-ended period of time, as long as you continue to pay the premiums. The premiums are higher than those of term insurance, but these products also accumulate a cash value that the policyholder can borrow against or receive upon surrendering the policy.

1. Wear and Tear: A home insurance policy will not pay for damages caused by a lack of care and maintenance. If you have rotten wood on a floor caused by leaky pipes, an insurance company is not obligated to repair the floor because of your negligence. 2. Water Damage Caused by a Flood: A flood is not the same thing as a sewer back up. Flood exclusion is intended for overland flooding, like from a lake or river. You may only receive flood insurance if you live in a flood plain and the government sponsors the insurance. 3. Damage Caused by Freezing of Indoor Plumbing, Water Seepage from Outside, and Sewer BackupSome insurance companies will cover some of these types of damage or allow you to pay for a special adjustment to your policy that will pay for these types of exclusions. 4. Damage Caused by Snow Slide, Landslide, and Other Forms of Earth Movement Damage from a fire or explosion caused by earth movement may be covered. Some insurance companies offer earthquake coverage. So if you live in an area where earthquakes are a concern, check with your insurance professional. 5. Damage Caused by Insects and RodentsIf mice or other small creatures enter your home from outside, you may have structural damage to your home. 6. Intentional or Criminal Acts (Fraudulent Claims)If you intentionally set a building on fire, or cause other kinds of damage on purpose to your home, not only will your insurance not cover the claim, they will lead the investigation to prove you are at fault.

Which of the following are possible reasons for shopping online? Choose the five answers that apply. Please do not guess, as incorrect answers are penalized for this question type.

1. You can check inventory to see if the item is in stock. 2. You don't have to fight the crowds on busy shopping days. 3. Many online merchants give free shipping on orders. 4. If you are using the same product model number, it will be the same item as in retail stores. 5. It is easy to compare the same item on different websites.

Equilibrium is where the quantity _____ equals the quantity ____

1. demanded 2. supplied

Don't buy on _____ or when you are . Carefully check ____ for the best deal, and never ____ to save a few pennies. You can shop ____ for items when local stores no longer have them in stock.

1. impulse 2. under stress 3. ads and prices 4. travel far 5. online

In economics, ____ is the amount of a resource that producers are willing and able to produce for the marketplace. _____ is a consumer's desire to purchase goods and services and what they are willing to pay for those goods and services.

1. supply 2. demand

In Ron Blue's video "Debt, Mercedes, and Speedboats," he suggests paying cash for a new car and planning to drive it for ____ years

10

1. Emergency Road Service: This covers towing, repairs, emergency gas delivery, changing a flat tire, opening a locked vehicle, and jumpstarting a dead battery. This can especially be helpful when you are out of town. 2. Gap Insurance: This pays for the cost of replacing a vehicle based on current replacement pricing and not the actual value of your car due to depreciation. This is especially helpful if you are renting your vehicle or it is considered a totaled loss or stolen.

3. Liability Coverage: This pays for damages due to bodily injury and property damages to others for which you are responsible. This includes medical expenses and damage to other vehicles or other property. 4. Medical Payments Coverage: This pays for YOUR medical expenses when you are injured by another person and provides for death benefits in the event you or others with you are killed. 5. Collision Coverage: This pays for damage to your vehicle caused by a collision with another vehicle, collision with an object such as a tree or road sign, and for vehicle rollover due to swerving or a sharp turn. It usually is accompanied by a deductible that you pay upfront before the insurance carrier pays any expenses. 6. Comprehensive Coverage: This pays for unexpected hazards or damage such as weather-related occurrences (hail, wind, flood), vandalism and theft, hitting a deer or other animal. This may or may not have a deductible. 7. Uninsured/Underinsured Motor Vehicle Coverage: Some states do not require a vehicle owner to purchase insurance in order to operate his/her vehicle. Other people either have no liability insurance or low limits of coverage. This pays for expenses you incur due to other actions that are not covered by them or their insurance. Costs might include medical expenses or lost wages and other damages not covered. 8. Car Rental and Travel Expenses Coverage: This pays for you to have a rental car when your car is being repaired.

More Tips for Shopping 1. Shop around- A "sale" price isn't always the "best" price. Some merchants may offer a sale price on an item for a limited time; others may discount the price on the same item everyday. Having an item's manufacturer, model number, and other identifying information can help you get the best price for the item you want. 2. Read sale ads carefully- Some may say "quantities limited", "no rainchecks", or "not available at all stores." Before you step out the door, call ahead to make sure the merchant has the item in stock. If you're shopping for a popular or hard-to-find item, ask the merchant if he'd be willing to hold the item until you can get to the store.

3. Take time and travel costs into consideration- If an item is on sale, but it's way across town, how much are you really saving once you factor in your time, your transportation, and parking? 4. Look for price-matching policies- Some merchants will match, or even beat, a competitor's prices - at least for a limited time. Read the merchant's pricing policy. It may not apply to all items. 5. Go Online- Check out some websites that compare prices for items offered online. Some sites may also compare prices offered at stores in your area. If you decide to buy online, keep shipping costs and delivery time in mind. 6. Calculate offers that are based on buying additional merchandise- For example, "buy one, get one free", "free gift with purchase", or "free shipping with minimum purchase" may sound enticing. If you don't really need or want the item, it's not a deal. 7. Ask about sale adjustments- If you buy an item at regular price and it goes on sale the next week, can you get a credit or refund for the discounted amount? What documentation will you need? 8. Ask about refund and return policies for sale items- Merchants often have different refund and return policies for sale items, especially clearance merchandise.

Stores (especially furniture and mattress outlets) will allow you to purchase an item by putting some money down and agreeing to pay the remainder off within ___ days

90

A consumer is anyone who purchases products or services for personal use or possession. We are all consumers, and it is important to be an informed consumer. Part of being an informed consumer is making wise decisions. As a consumer, we make countless decisions about our finances. A key to making great decisions is starting with the right question, letting you focus on what matters. Good decision-making involves asking the question, "What do I think God would have me to do here?" Decision-making can be viewed as a team sport between you and God. Another part of being a well-informed consumer is knowing what rights and protections you have by law. The right to choose (using your decision-making skills) is just one. Let's take a look at some of those rights and protections below.

A consumer has certain rights that may differ from state to state, and these rights differ in relation to the type of goods and services that are paid for by the consumer. Let's take a look at major consumer rights that are generally accepted in the world of a free market economy. there is no such thing as an independent financial decision. In our lifestyle choices, and specifically in our finances, everything affects everything. So, making wise decisions is certainly an important aspect of our financial health. Let's investigate ways to make intelligent decisions when purchasing goods or services. When making purchases, it is important to reflect on why you are making the decision, and how that decision will affect other aspects of your life. In the video, Mr. Blue explains how more wealth does not equal more contentment. He says the "run-up in wealth" that our society has experienced has only given us more confusion, doubt, and fear. Hebrews 13:5 says "Keep your life free from love of money, and be content with what you have, for God has said, 'I will never leave you nor forsake you.'" Purchases are inevitable in our daily lives. However, once you are provided your basic needs, you will need to begin making decisions about what kind of lifestyle you should live and how much you need to accomplish that lifestyle. A more expensive lifestyle does not necessarily lead to contentment. When making purchases, especially large purchases (which we learn about in the next lesson), consider the possibility of a simpler lifestyle with a bigger view of their role in giving towards Kingdom purposes.

Insurance involves risk. The insurance companies are risking having to pay their customers when the customer suffers a loss in property or finances. The customers are risking payments that may never go towards anything other than the insurance premiums in order to have peace of mind that they are protected in cases of emergencies. Even though it is wise to have insurance, we as Christians put our trust in the Lord who promised, "I will never leave you nor forsake you" (Hebrews 13:5).

After you have signed a contract, there are legal aspects to be aware of that may be important to you. For example, some contracts include a "right to rescission" which gives the signer a certain amount of days (i.e. three days after a mortgage loan is signed) to rescind, or cancel, the contract. It is incredibly important to read all of the language in any contract you sign... even the small print. Some contracts may include this offer to rescind the contract if you change your mind, but many will not. Another important aspect to consider is what legal ramifications may present themselves during the life of your contract. For example, if you and a friend sign an apartment contract together, and one of you decides to leave before the lease is up, what happens? Contracts should lay out what occurs in situations like this one, however, some will not. This is yet another reason to read any contract you sign thoroughly, especially if you are signing a contract with someone else.

After signing a contract, what should you be aware of?

Any related legal aspects such as the right to rescission

As a consumer, why should you beware of payday, car title, and tax refund loans?

Because interest rates on these loans are usually excessive

What is the best way to handle a setback in your spending plan (such as overspending on an item without planning?)

Calmly figure out what went wrong and how you can prevent it in the future, and then put it behind you and start fresh the next day

Which type of agreement will ask you to agree to be a customer for a certain amount of months, usually while you are paying off equipment?

Cellphone agreement

In life, you will come across a situation in which you'll need to purchase something larger than normal. An appliance may break, and you need a new one. Your family grows, and you'll need a larger vehicle. The wonderful news is, as we are practicing good stewardship, God promises to take care of all of our needs. In Philippians 4:19, the Apostle Paul says "And my God will supply every need of yours according to his riches in glory in Christ Jesus." However, when it comes to larger purchases, a little planning on our part goes a long way. We must do our due diligence to ensure making a large purchase is not stressful or foolish. Let's continue to investigate options and details about purchasing choices as a consumer. What are some of the different ways you can make large purchases?

Checklist to Help You Plan a Purchase 1. Decide in advance what you want and what you can afford. 2. Do your research. Ask family, friends, and others you trust for advice based on their experience. Gather information about the seller and the item or service you are purchasing. 3. Review product test results and other information from consumer experts. 4. Get advice and price quotes from several sellers. 5. Make sure that the seller has all the appropriate licenses. Doctors, lawyers, contractors, and other service providers must register with a state or local licensing agency. 6. Check out a company's complaint record with your local consumer affairs office and Better Business Bureau. 7. Get a written copy of guarantees and warranties. Compare their features. 8. Get the seller's refund, return, and cancellation policies. 9. Sometimes retailers do not update cash register scanners with updated prices. If you think the price displayed isn't correct, speak up. 10. Ask who to contact if you have a question or problem. 11. Read and understand any contract or legal document you are asked to sign. Make sure there are no blank spaces. Insist any extras you are promised are put in writing. 12. Consider paying by credit card. If you have a problem, you can dispute a charge made on your credit card. 13. Don't buy on impulse or under pressure. This includes donating to charity.

Which of the following is a type of savings account that banks will set up for customers to help save for a special purchase?

Christmas Club

Basic Health Insurance Terms and Conditions of Service Premium: The amount the policy-holder or his sponsor (e.g. an employer) pays to the health plan to purchase health coverage. Deductible: The amount that the insured must pay out-of-pocket before the health insurer pays its share. For example, policy-holders might have to pay a $500 deductible per year, before any of their health care is covered by the health insurer. Furthermore, most policies do not apply co-pays for doctor's visits or prescriptions against your deductible. Co-payment: The amount that the insured person must pay out of pocket before the health insurer pays for a particular visit or service. For example, an insured person might pay a $45 co-payment for a doctor's visit, or to obtain a prescription. A co-payment must be paid each time a particular service is obtained.

Coinsurance: Instead of, or in addition to, paying a fixed amount up front (a co-payment), the co-insurance is a percentage of the total cost that the insured person may also pay. For example, the member might have to pay 20% of the cost of a surgery over and above a co-payment, while the insurance company pays the other 80%. If there is an upper limit on coinsurance, the policy-holder could end up owing very little, or a great deal, depending on the actual costs of the services they obtain. Exclusions: Not all services are covered. The insured are generally expected to pay the full cost of non-covered services out of their own pockets. Coverage limits: Some health insurance policies only pay for health care up to a certain dollar amount. The insured person may be expected to pay any charges in excess of the health plan's maximum payment for a specific service. Out-of-pocket maxima: Similar to coverage limits, except that in this case, the insured person's payment obligation ends when they reach the out-of-pocket maximum, and health insurance pays all further covered costs. Out-of-pocket maxima can be limited to a specific benefit category (such as prescription drugs) or can apply to all coverage provided during a specific benefit year. Capitation: An amount paid by an insurer to a health care provider, for which the provider agrees to treat all members of the insurer. In-Network Provider: (U.S. term) A health care provider on a list of providers preselected by the insurer. The insurer will offer discounted coinsurance or co-payments, or additional benefits, to a plan member to see an in-network provider. Generally, providers in a network are providers who have a contract with the insurer to accept rates further discounted from the "usual and customary" charges the insurer pays to out-of-network providers.

Stephen wanted to buy a used car when he started his new job. Which of the following ideas would NOT help him make the best decision?

Considering only cars that were his favorite color

Consumers do not need to be at the mercy of the producers, providers, and sellers of products and services. No one should ever accept defective goods or be satisfied with substandard service. Know the rights all consumers have and make sure you receive what is advertised or promised.

Consumer Rights The right to safety: Consumers should be able to assume that the products they buy are reasonably safe to use or consume. The right to be informed: Information about the ingredients and the process of production should be posted conspicuously so the consumer can be informed. Due to possible allergic reactions to chemicals or foods, it is important for the consumer to know this information. The right to choose: It is not fair for one company to have a monopoly or an unfair advantage that limits the choice of goods and services. That is why there are anti-trust and unfair competition laws. Due to these laws, we have choices and a variety of services and goods available for the same items. The right to be heard: This is evidenced by the laws and regulations that the government institutes to protect the rights and desires of consumers. This is geared more towards issues such as environmental and fuel efficiency of automobiles. The right to education: Consumers should have access to programs and information that help make better buying decisions. Consumers should learn about the changing nature of products - consumer education is a lifelong responsibility. The right to fair compensation: Consumers have the right to request money or other benefits as fair compensation for a company's mistake due to poor workmanship or service rendered. It is the consumer's responsibility to make the effort to seek compensation for a wrong. The right to a healthy environment: Consumers have the right to work and shop in an environment that does not present health hazards due to construction, smoking, chemicals or any other possible safety violations.

As a consumer, what is the right to safety?

Consumers should be able to assume that the products they buy are reasonably safe to use or consume.

Personal property insurance is insurance that provides coverage for your possessions that are referred to as personal property and that are not real estate. It can be for either the replacement or repair of anything that is insured. This need for reimbursement can be for items that are damaged, stolen, and lost. This kind of insurance may cover jewelry that exceeds a homeowners' policy limit (typically $1,500.00), expensive camera and computer equipment, and any other personal possessions that you list to be included on your policy.

Contingency Insurance As the word "contingent" is in the name, this type of insurance is specialty insurance that can be added to homeowners or other insurance. It covers risks that are associated with the location of a home (in a floodplain, "tornado alley," close to a fault line, et cetera) and is purchased to offset the damage caused by natural disasters not covered by a regular policy. Contingency insurance may also be purchased for extra liability coverage (such as tort insurance, which provides specified liability insurance against fraud and civil suits). For example, if you have a large dog that may be a threat to others you may want this extra insurance. Also, if you have your own company, you may purchase insurance specific to your service: insurance to cover freight you move, insurance to cover drivers not covered on your automobile policy, and similar insurance "contingent" on a special circumstance or occurrence.

If you own your own company, which insurance might you want to consider to cover things such as freight you move or drivers not covered on an automobile policy?

Contingency insurance

How does good advertising affect the demand for a product?

Demand will increase.

Remember that flood and earthquake damage are not covered by a standard homeowners policy. The cost of a separate earthquake policy will depend on the likelihood of earthquakes in your area. Homeowners who live in areas prone to flooding should take advantage of the National Flood Insurance Program.' Your need for life insurance will change with changes in your life. For example, the arrival of children usually triggers a sharp increase in the amount you need. As children grow older and leave the nest, you will probably need less protection.

Details about Homeowners Insurance A homeowners insurance policy covers the primary residence, any connected or adjoining outbuildings, and the contents of the home. It also covers liability for injuries incurred in or on the homeowner's property. Some things can change the pricing and coverage. Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium. You may be able to get a lower premium if your home has safety features such as deadbolt locks, smoke detectors, an alarm system, storm shutters or fire-proof roofing material. Persons over 55 years of age or long-term customers may also be offered discounts. Don't wait until you have a loss to find out if you have the right type and amount of insurance. This applies to things like sewer lines backing up into your home and similar damage that may need an adjustment to your plan to cover these types of claims. Make certain you purchase enough coverage to replace what is insured. "Replacement" coverage gives you the money to rebuild your home and replace its contents. An "Actual Cash Value" policy is cheaper but pays only what your property is worth at the time of loss. It is computed by subtracting deprecation from replacement cost. Ask about special coverage you might need. You may have to pay extra for computers, cameras, jewelry, art, antiques, musical instruments, stamp collections, etc. If you are a renter, do not assume your landlord carries insurance on your personal belongings. Purchase a separate policy for renters.

Long-term care insurance is similar to disability insurance in that it provides for health and physical care when a person is in a rehabilitation center, nursing home, or elder care facility. For this type of insurance, a person pays premiums ahead of time, and when the person is incapacitated and has to go into residential care because of dementia, Alzheimer's, or health reasons, the policy pays the facility for the costs incurred for personal care. Things in life are sometimes uncertain. Insurance can help provide in situations that come along unexpectedly.

Disability Insurance A disability can be more disastrous financially than death. If you are disabled, you lose your earning power, but you still have living expenses and often huge expenses for medical care. Disability insurance helps you replace lost income. Many employers offer some type of disability insurance coverage for employees, or you can get an individual disability insurance policy. There are two types of disability policies: short-term disability (STD) and long-term disability (LTD). Short-term disability policies have a maximum benefit of two years, while long-term disability policies have benefits that can last the rest of your life. When purchasing disability insurance, there are several things you need to consider: How is disability defined? Some policies consider you disabled if you are unable to perform the duties of any job. Better plans pay benefits if you are unable to do the usual duties of your own occupation. When do benefits begin? Most plans have a waiting period after an illness before payments begin. How long do benefits last? After the waiting period, payments are usually available till you reach age 65, though shorter or longer terms are also available. What dollar amount is promised? Can benefits be reduced by Social Security disability and workers' compensation payments? Are the benefits adjusted for inflation? Will the policy provider continue making contributions to your pension plan so you have retirement benefits when the disability coverage ends?

Insurance Rates When you go shopping for vehicle insurance rates there are some things you need to know regarding the factors that affect how much you will pay for coverage. Let's take a look at what makes a difference in the rates you will pay. Age: Drivers from 16 to 25 generally pay a higher premium because of three main facts:Male drivers in this age group have a driver fatality rate four times the national average16-year-old drivers have the highest fatality rate in the countryFatal crashes are twice as likely for a 16-year-old driver with passengers Occupation: Your job can affect your rates. People that are known for detail and precision such as scientists and airplane pilots have better rates instead of salespeople and executives who tend to talk on cell phones to do work-related tasks while driving.

Driving record: Depending on the types of violations, number of instances, and time between occurrences, insurance companies may raise your rates for a time period or permanently. Marital status and other discounts: People who are married, insuring multiple vehicles, owning your own home, having anti-theft devices and alarms in your vehicle, and similar intangibles can affect your premium rate. Claims: If you have made numerous claims against your insurance company for benefits, that can cause your rates to go up. Conversely, if you are not at fault, generally your insurance company will not charge you just because you were involved in an accident. Auto theft: Because of popularity for aftermarket sales and car parts, some car makes and models are more likely to be stolen. This may not be your fault, but it is taken into consideration. Deductibles: Since some types of coverage include a deductible, you can sometimes bring down the rates by assuming a higher risk and raising your deductible. This is especially applicable to collision and comprehension coverage. Residence: Generally, the less the traffic, the lower the rate will be. People who live in rural and suburban areas are less likely to be in accidents than those who live in downtown or urban areas. Other: Family history with a company, driver education classes, length of company loyalty, and other intangibles can affect the insurance rates you pay.

When health insurance pays a claim for a patient, the amount covered is documented in a type of correspondence known as the ________________________.

EOB (Explanation of Benefits)

Prior Authorization: A certification or authorization that an insurer provides prior to medical service occurring. Obtaining an authorization means that the insurer is obligated to pay for the service, assuming it matches what was authorized. Many smaller, routine services do not require authorization Explanation of Benefits: A document that may be sent by an insurer to a patient explaining what was covered for a medical service and how the payment amount and patient responsibility amount were determined.

Every believer, regardless of his or her level of health, has a purpose in God's kingdom. Healthcare is about caring for your body, your mind, and your emotions—the whole person—so you can fulfill God's calling for your life, whatever that may be. We are all different. Some are stronger and some are weaker, but we all have a purpose for the Kingdom. "For the body does not consist of one member but of many" (1 Corinthians 12:14.) Besides life and health insurance, are there other insurance policies available that can address special conditions or needs to take care of our whole person? Let's take a look at what optional insurances are out there in the marketplace. Flexible Spending Accounts - Accounts set up that are automatically deducted from your payroll pre-tax so you receive the tax benefits upfront. The account must be spent on medical treatment and supplies, and it is usually in effect for a year. Any money left in the account after the end of the policy year is usually forfeited. Medicare - Medicare is a Federal health insurance program for people who are age 65 or older and certain younger people with disabilities. It also covers people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD.)

In 1 Corinthians 6:19-20, Paul says, "Or do you not know that your body is a temple of the Holy Spirit within you, whom you have from ____? You are not your own, for you were bought with a price. So glorify God in your body."

GOD

James 1:5 tells us, "If any of you lacks wisdom, let him ask ___ , who gives generously to all without reproach, and it will be given him."

GOD

James 1:5 tells us, "If any of you lacks wisdom, let him ask ____ , who gives generously to all without reproach, and it will be given him."

God

In Ron Blue's video "John Steinbeck's Letter," Mr. Blue says that although the United States is the richest country in the world, this has not given us what?

Happiness and contentment

Which of the following would signal a sharp increase in the amount of life insurance you need?

Having children

The bible is our owner's manual. It gives us direction and principles on anything we need to know. This is also true about our bodies and our health. There are many places in the bible that give us direction on how to take care of our bodies. Luke, who wrote over half of the New Testament was a physician! In I Timothy 5:23, Paul tells Timothy "No longer drink only water, but use a little wine for the sake of your stomach and your frequent ailments." In I Corinthians 6:19-20 Paul says "Or do you not know that your body is a temple of the Holy Spirit within you, whom you have from God? You are not your own, for you were bought with a price. So glorify God in your body." However, the bible does not ensure us we will never face sickness or injury. We must have a plan in case our health is compromised. the bible also tells us it is prudent to plan for the future, investing in health insurance is a wise, biblical decision.

Health insurance is insurance against the risk of incurring medical expenses among individuals. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity. With the passage of the Affordable Care Act by Congress and signed into law by the president in 2010, there has been much discussion about health care provision. According to the Affordable Care Act, all health insurance plans must offer certain essential benefits: doctor visits prescription drugs hospitalization maternity and newborn care preventative care

If an item you want to purchase is on sale, but you must travel many miles to the next town to purchase it, what is important to consider?

How much will you really save once you consider the gas to drive and your time?

Which of the following use online contracts? Choose the two that apply. Please do not guess, as incorrect answers are penalized for this question type.

INSTAGRAM and NETFLIX

You may be reimbursed for items covered with personal property insurance under which circumstance(s)?

If the items are lost, stolen, or damaged

Because effective advertising creates a feeling of need for a product, what effect can that potentially have on demand for a product?

It can cause the demand to go up.

Health Care Beyond Basic Health Insurance Dental Insurance - Most plans cover two dental check-ups a year including x-rays and cleaning. Other services such as filling cavities, tooth extraction, and basic procedures are usually paid based on plan allocation for the procedures. Other larger expenses such as orthodontics, surgery, dentures and more expensive procedures may have a maximum amount paid per year or per procedure. Vision Insurance - Vision plans generally provide coverage for all or part of the costs of: 1. routine eye exams either free once a year or small co-pay 2. contact lenses or eyeglasses-plan allowances vary and usually cover special coatings and other options 3. discounts on laser surgery-anywhere from 5% to 25% or higher depending on the need

Long-Term Care Insurance - An insurance plan that you pay while still working so that you will be taken care of in a rehabilitation center or a nursing home when your health prevents you from living at home. Some plans may even provide in-home care depending on the need that exists. This is a supplement to any federal subsidies provided such as Medicare. Medicare Advantage (Part C) - A type of Medicare health plan offered by a private company that contracts with Medicare to provide you with all your Medicare Part A and Part B benefits. Medicare Advantage Plans include Health Maintenance Organizations, Preferred Provider Organizations, Private Fee-for-Service Plans, Special Needs Plans, and Medicare Medical Savings Account Plans. Medicare Part D - A program that helps pay for prescription drugs for people with Medicare who join a plan that includes Medicare prescription drug coverage. There are two ways to get Medicare prescription drug coverage: through a Medicare Prescription Drug Plan or a Medicare Advantage Plan that includes drug coverage. These plans are offered by insurance companies and other private companies approved by Medicare. Medicaid - Medicaid is a state-administered health insurance program for low-income families and children, pregnant women, the elderly, people with disabilities, and in some states, other adults. The Federal government provides a portion of the funding for Medicaid and sets guidelines for the program. States also have choices in how they design their program, so Medicaid varies state by state and may have a different name in your state. Not all health insurance coverage is the same. There are many options you can choose from.

As Christians, we are blessed to have the Bible as a manual on how to run our lives. It gives us many examples on how to take care of our bodies. Who is a physician introduced in the New Testament?

Luke

_________ is a state-administered health insurance program for low-income families and children, pregnant women, the elderly, people with disabilities, and in some states, other adults.

Medicaid

The automobile insurance business is a very large industry. They drive the market in many ways, including safety standards, safety features on cars, and in other ways.

Motorcycles: You may own a motorcycle that you drive every day or just for pleasure on weekends. Depending on the extent of your use, there may be special policies to cover your "bike." Boats and Jet Skis: Boats, trailers, and property contained in the boat (equipment, anchors, tools, life preservers, skis and other property associated with your boat) can be insured for damage and loss. Also, your policy could protect against weather, sinking, theft, collision, and other possible expenses related to the use of your boat. Snowmobiles: For those who travel in colder climates, insurance is offered to cover snowmobiles, and is very similar to policies that provide coverage for motorcycles. Antique Automobiles: Since antiques are usually driven less and protected more when not in use, insurance companies provide coverage for these special vehicles and even their rare parts. Other: Recreational vehicles such as motor homes or campers, farm tractors, large lawn mowers, all-terrain vehicles, and other off-road vehicles may be accepted by your insurance company for coverage under a special rider to your homeowners' insurance or some specific policy that provides coverage.

Insurance is a financial product that helps with keeping finances safe, especially when unexpected things happen like personal injury, fire, accidents, and even death. An insurance policy is a contractual agreement made between an individual or group with an insurance company. The consumer is responsible for knowing what is covered by the policy, the costs involved, any exclusions, and details of the administration of the policy. The premium is the amount paid by the insured or the policyholder that goes to the insurance provider. Premiums can be set up to be paid monthly, quarterly or yearly. Some companies give a discount on the total costs of the premium if the insured pays yearly instead of periodically. Often this charge can be automatically drafted off your bank account or credit card. Some insurance companies also give you discounted rates when you have multiple insurance policies with the same provider.

Other Fees and Payments Co-pay - a set fee usually associated with health care policies. These are fees that are expected upon service received such as at a doctor's office or hospital. Deductible - an amount set (usually on a yearly basis) that the consumer must pay before the insurance company is responsible for paying any amount. This is typical for almost all insurance policies. Specialization - Most insurance is sold by companies that specialize in a particular type of insurance. Most healthcare insurance companies do not offer other kinds of insurance. Some insurances concentrate on providing insurance to individuals that cover personal property such as homes and vehicles. Then other companies provide one time purchases such as travel or shipping insurance. In the long run, the insurance companies are risking that the customer won't ever need to be reimbursed or paid for loss. Meanwhile, the customer is hoping that the insurance company will pay if and when such an event occurs. Insurance comes in many forms and for many purposes. Insurance can cover everything from a car to someone's burial expenses.

When you buy your first home, homeowners insurance is a need. It is a protection against major issues that happen while you own your home. And issues will happen. Insurance provides a bit of a safety net to financially "catch" you in the event that a large repair needs to be done, or if an accident were to occur on your property. God is our protector and provider, and He is a very present help in times of trouble. God will provide us with what we need to face any trial, but He may not protect us from every bump in life. John 16:33 says "I have said these things to you, that in me you may have peace. In this world, you will have tribulation. But take heart; I have overcome the world." It is a certainty that you will have trouble come your way. However, we have God's promise of provision. We also have the gift of insurance. Insurance policies allow for peace of mind, knowing if a large issue arises, we have a plan.

Owning a home comes with a multitude of responsibilities. As a matter of good stewardship, we should protect the items God has given to us. Homeowners insurance covers more than just fire and theft damage. Let's look at the various coverage involved and possible options. If you own your own home or if you are in the process of buying or looking for a new home, it is important that you understand the details related to insurance for a home. Just like other kinds of insurance, there are many options and many things to consider. Let's look at some of those possibilities.

When making a large purchase, what is our responsibility?

Planning and due diligence to ensure we don't make a foolish decision

Basic Kinds of Health Insurance Plans Health Maintenance Organizations (HMO) and Exclusive Provider Organizations (EPO) - HMO and EPO may limit coverage to providers inside their networks. A network is a list of doctors, hospitals, and other health care providers that provide medical care to members of a specific health plan. If you use a doctor or facility that isn't in the HMO's network, you may have to pay the full cost of the services provided. HMO members usually have a primary care doctor and must get referrals to see specialists. This is generally not true for an EPO.

Preferred Provider Organizations (PPO) and Point-of-Service plans (POS) - These insurance plans give you a choice of getting care within or outside of a provider network. With PPO or POS plans, you may use out-of-network providers and facilities, but you'll have to pay more than if you use in-network ones. If you have a PPO plan, you can visit any doctor without a referral. If you have a POS plan, you can visit any in-network provider without a referral, but you'll need one to visit a provider out-of-network. High Deductible Health Plan (HDHP) - High Deductible Health Plans typically feature lower premiums and higher deductibles than traditional insurance plans. As of 2013, HDHP are plans with a minimum deductible of $1250 per year for individual coverage and $2500 for family coverage. If you have an HDHP, you can use a health savings account (HSA) or a health reimbursement arrangement to pay for qualified out-of-pocket medical costs. This can lower the amount of federal tax you owe. Catastrophic Health Insurance Plan - A catastrophic health insurance plan covers essential health benefits but has a very high deductible. This means it provides a kind of "safety net" coverage in case you have an accident or severe illness. Catastrophic plans usually do not provide coverage for services like prescription drugs or shots. Premiums for catastrophic plans may be lower than traditional health insurance plans, but deductibles are generally much higher. This means you must pay thousands of dollars out-of-pocket before full coverage kicks in.

Economic harmony comes from the balance of which things?

Products, services, and consumers

Personal property insurance offers which option(s) if your property is lost, damaged, or stolen?

Replacement or repair

Keep your financial goals front and center. Again, remembering WHY you're making the effort to manage your money will inspire you to keep going. Don't drastically cut back on having fun to reach your financial goals faster. A budget that totally deprives you of enjoying God's blessings will be a budget you won't stick to for long. Take setbacks in stride. It does no good to beat yourself up for slipups. First, calmly figure out what went wrong, and how you can prevent it in the future. Then, put it behind you and start fresh the next day. Making a plan to help you stay on track when you are looking to make any purchase, especially a large purchase, is vital

Spending Plan Creating a spending plan can help you stay on track, and save for large purchases, but it is just the start. You have to actually follow the plan for it to work. Here are some steps to help you follow your spending plan: Use cash to pay for your variable (changing) expenses. Counting out the bills makes you think twice about whether the item is worth it or not. And, of course, it is harder to blow your budget because you can't spend cash you don't have. Withdraw all the money you will need once a week. It's hard to keep track of all of those $20 withdrawals throughout the week (not to mention any ATM fees). Instead, take out everything you'll need at the beginning of the week. If you run out of cash, you're done! Track your expenses. Little purchases add up fast, too. You need to nip the problem in the bud by getting back into the habit of tracking every single dime that leaves your pocket. Use automatic transfers to save money for a big purchase before you ever see it. Have your bank account divided into sub-accounts. Most financial institutions will allow you to have 2 or more sub-accounts. Deposit a set amount into a marked sub-account for saving for trips, Christmas spending, or larger priced items. Ignore peer pressure to overspend. It can be tempting to ditch your budget when friends are urging you to come along or are talking about some hot new gadget. But, what is more important... your goals or following the crowd? When temptation strikes, try writing down why your goal is important to you to help you stay on track. know what you can afford. Just because you can make the payments on a large purchase does not necessarily mean that you can afford the purchase. Plan properly and use wise shopping habits when purchasing larger products either in stores or online.

Amanda wanted to buy some furniture for her new apartment. Because she was bringing most of her furniture from home, she only needed a sofa and two chairs. After carefully shopping at several furniture stores, she found what she wanted. Below are the possible options for financing her purchase. She plans on paying the cost of the furniture off in three months. Decide which option would be the wisest choice for her.

Store Credit (If it is paid off in three months (90 days), the interest rate would not be a factor.)

What is a part of the right to be informed as a consumer?

The ingredients and the process of production should be posted conspicuously.

In general, with whom will you sign a contract if you rent an apartment or condo?

The landlord or owner of the property

This Christmas, there is a huge demand for the hottest toy. Every parent you know is trying to make sure this toy is under the tree for their little boy or girl. What would you expect this rise in demand for a popular toy to do to the price?

The price will rise.

How long can the benefits of long-term disability last?

The rest of your life

Stores will extend credit on a purchase and set up minimum payments. How do the interest rates of these plans compare to banks or credit cards?

They are generally higher.

During a global pandemic, the need for medical workers rises sharply. Based on this rise in demand, what can you assume would happen to the salaries of nurses?

They would rise due to the higher demand.

Making purchases is common to all consumers. Take a minute and think about how you have been a consumer this week. What have you purchased? How did you make the decision to purchase that item? Following a solid decision-making process allows for more clarity and confidence in life's decisions. James 1:5 tells us "If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him." God wants us to seek his guidance when making decisions. And how do we ask? By prayer of course! Take a look at Phillippians 4:6-7. It reminds us to not be anxious, but by prayer, let your requests be known to God.

Tips for Consumers 1. A deal that sounds too good to be true usually is. Be wary of promises that cannot be kept. 2. Don't share personal information with someone you don't trust. Learn how to recognize fraud. 3. Beware of payday, car title, and tax refund loans. Interest rates on these loans are usually excessive. 4. Read and understand any contract or legal document you are asked to sign. Do not sign a contract with blank spaces or where the terms are incomplete. 5. Get estimates from several contractors for home or car repairs. Make sure the estimates are for the exact same repairs for a fair comparison. 6. Before you buy, make sure you understand and accept the store's refund and return policies, especially for services and facilities that charge monthly fees. 7. When paying for your purchases, double-check the final price. If you think the price that has been charged is incorrect, speak up. Remember, when shopping online, your purchase may include additional fees, such as shipping, handling, and convenience fees that are not calculated until you check out. 8. When shopping online, look for the padlock icon in the bottom corner of your screen or a URL that begins with "https" to ensure that your payment information is transmitted securely. 9. Don't buy under stress. Avoid making big-ticket purchases during times of duress (e.g., coping with a death or debt). 10. If you are having difficulty making payments on loans, notify your lender immediately so that you can work out a payment plan.

What do most dental insurance plans fully cover?

Two teeth cleanings a year, as well as x-rays

Who can be considered a consumer?

We all buy things, so we can all be considered consumers.

Good decision-making as a consumer involves asking what question?

What do I think God would have me to do here?

Life is precious. It is important to make provisions for a time when a person's life ends, especially unexpectedly. Most importantly, one needs to face mortality and where one will spend eternity. Putting one's faith in Christ and obeying His commands will ensure the best life on earth and in the Kingdom to come!

What type of things affect the rates of life insurance? Your Gender - Gender equality is a good thing, but your gender does say something about your life expectancy. Women live longer than men as a general rule, which means they will pay generally lower rates for life insurance. The Policy Itself - The longer the term of the policy and the larger the amount of the death benefit the more you will pay for it. Simply put, this is because the risk that you will die during the policy term is much higher when they are covering you for a more extended period. And the more they will have to pay out on your death, the more they will charge you for that coverage. Short-term policies are more expensive than long terms, and whole or permanent life insurance is generally more expensive than any length of term insurance. Your Family History - Those with a significant family history of heart disease and cancer, which can be hereditary, may pay more for life insurance. Genetically speaking, they are more likely to be diagnosed with the same terminal illness and to die from it.

Economics says that the price of something will move toward a point where the quantity demanded is equal to the quantity supplied. This is called equilibrium. An equilibrium price is one at which a producer can sell all he wants, and a consumer can buy all he demands. The point in the above graph where the supply line meets the demand line is the equilibrium. If demand increases and supply stays the same then it leads to higher equilibrium price and higher quantity. If demand decreases and supply stays the same, then it leads to lower equilibrium price and lower quantity.

What wages are paid to laborers is also affected by supply and demand. When the supply of labor increases (more workers in the workforce), the equilibrium price falls, and when the demand for labor increases (more jobs), the equilibrium price rises. An increase in demand for workers, or a reduction in the supply of them, will raise wages; an increase in the supply of workers, or a reduction in demand of them, will lower wages. For example, assume there is a high demand for emergency room nurses. For hospitals to hire the number of skilled nurses they need to staff their emergency rooms, they will need to consider raising the pay of that position to attract nurses to fill the position. Therefore, a nurse who agrees to work in a high-demand job such as an emergency room with unpredictable hours may be able to make more than a nurse who works a 9-5 schedule in a doctor's office.

How might gender play a role in determining rates for life insurance?

Women live longer than men as a general rule, which means they will pay generally lower rates for life insurance.

When you buy a new home, whose responsibility is it to make sure you have homeowners insurance that will replace the costs of building or repairing your home if it is damaged by fire?

You, the homeowner

A ___ is anyone who purchases products or services for personal use or possession.

consumer

Leviticus 6:2 states, "If anyone sins and commits a breach of faith against the Lord by _________ his neighbor in a matter of deposit or security, or through robbery, or if he has oppressed his neighbor ... he shall restore it in full."

deceiving

Before you agree to a home or car repair, you should get several __________ to make sure you are getting the fairest deal.

estimates

In our lessons, we learned that there is no such thing as an independent financial decision. In our lifestyle choices, and specifically in our finances, __________ affects ___________.

everything, everything

With _________________, a person pays premiums ahead of time, and when the person is incapacitated and has to go into residential care because of dementia, Alzheimer's, or health reasons, the policy pays the facility for the costs incurred for personal care.

long-term care

It is not fair for one company to have a _____ or an unfair advantage that limits the choice of goods and services. That is why there are anti-trust and unfair competition laws.

monopoly

In Philippians 4:19, the Apostle Paul says, "And my God will supply every _____ of yours according to his riches in glory in Christ Jesus."

need

The "right to _____________" entitles the signer of a loan a certain amount of days to rescind, or cancel, the contract.

rescission

As a matter of good ______________, we should protect the things God has given to us, including our home.

stewardship

If you are not satisfied with the service you receive from the same merchant over and over again, you can always report them to __________________.

the Better Business Bureau