PF- 3 Financial Risks- 10/19/17(Thur.)- Q. #3- Risks

PF- Q 3: Brian received a phone call today asking him to donate to a disaster relief fund. He would like to donate some money. What should Brian do?

- Give them his credit card number over the phone. - Ask for the name of their organization and look for information about them to make sure they are authentic before he donates. - Ask for an address and mail a check. - Assume it is a scam and don't donate. answer: - Ask for the name of their organization and look for information about them to make sure they are authentic before he donates.

PF- Q 3: Financial risks are usually less than $100.

- True - False answer: - False (guess)

PF- Q 3: A scam is a fraudulent scheme used to make money.

- True - False answer: - True

PF- Sec. 1: Phishing is looking for and reporting online scams.

- True - False answer: - True

PF- Q 3: A good financial plan includes an insurance plan.

- True - False answer: - True (guess)

PF- Q 3: When purchasing car insurance, you'll need to decide how much bodily injury limit you'll need. The bodily injury limit is the _____.

- amount you pay when you get in an accident - most the insurance company will pay - most the person insured will pay - least the insurance company will pay answer: - most the insurance company will pay (guess)

PF- Sec. 1: Life insurance _____.

- covers hospital bills - pays for repairs on cars - pays a certain sum of money to a beneficiary in case of death - covers the costs associated with life answer: - pays a certain sum of money to a beneficiary in case of death

PF- Q 3: When you get in a car accident, you should _____.

- file a claim - shop for an insurance policy - sign a contract with an insurance agent - start paying the premium answer: - sign a contract with an insurance agent

PF- Q 3: To help protect yourself from the risk of product failure, what strategy could you use?

- get a deductible - obtain insurance - purchase a warranty - file a claim answer: - file a claim (guess)

PF- Q 3: Zach has heard the company where he works is not making enough in profits and is facing rough times. What risk does he face?

- illness - scam - loss of job - loss of car insurance answer: - loss of job

PF- Q 3: Choose all that apply. Select all the information you need when getting a quote for car insurance.

- name - age - gender - number of accidents - town you live in - make and model of car - approximate number of miles driven per year answer: - name - age - gender - number of accidents - town you live in - make and model of car

PF- Sec. 1: The purpose of insurance is to _____.

- pay for repairs when you can't pay for them - help protect you from financial loss - protect you from getting sick and needing a doctor - pay for insurance premiums answer: - pay for repairs when you can't pay for them

PF- Q 3: All the following are financial risks except _____.

- scam - identity theft - natural disaster - buying a warranty answer: - buying a warranty (guess)

PF- Sec. 1: Jim purchases land hoping that the value of the land will increase over the next five years. What risk does Jim face?

- scam - theft - losing money in an investment - paying for expensive repairs answer: - losing money in an investment

PF- Q 3: Name three types of insurance.

Writer:

PF- Sec. 1: List five risks that were discussed in this lesson.

Writer: 1. scams 2. identity theft 3. investment loss 4. job loss 5. cash loss 6. accident or injury 7. theft 8. product failure 9. expensive repairs 10. illness 11. disability 12. natural disaster

PF- Q 3: Why is it important to have insurance?

Writer: Its important to have insurance so that you don't have to pay for all of your losses.

scam

a fraudulent scheme used to make money

beneficiary

a person who receives the payment from a life insurance policy

claim

a request for payment from an insurance company

insurance policy

an agreement to cover or reimburse an individual for a loss that occurs

co-payment

an amount the insured person pays to cover a portion of a doctor bill or cost for prescription

PF- Sec. 1: Choose all that apply. Select all the strategies you can use to manage risks. - buy health insurance - provide your personal information to others - have an emergency fund - have a warranty - become informed - carry lots of cash

answer: - have an emergency fund - become informed

PF- Q 3: Liability coverage is _____. - a type of health insurance - coverage for expenses associated with lawsuits - the portion of health insurance that protects doctors from lawsuits - insurance that covers other people's injury or loss for which you are responsible

answer: - insurance that covers other people's injury or loss for which you are responsible

PF- Q 3: What is the purpose of travel insurance? - to help you save for a vacation - to cover the cost of travel expenses in case you are unable to travel - to pay for any accidents that happen while you are on vacation - to pay for car accidents in the rental car

answer: - to cover the cost of travel expenses in case you are unable to travel

Dental insurance

covers at least part of the costs incurred at a dental office, such as cleanings, exams, fillings, and x-rays.

Health insurance

covers costs associated with health, such doctor bills, hospital stays, vaccinations, and prescriptions from a pharmacy. Health insurance varies greatly in what it covers. Sometimes a health insurance plan will require you to pay a 'co-payment.' This is a fee that you pay each time you visit the doctor or buy a prescription.

Vision insurance

covers costs incurred at an optometrist's office.

Travel insurance

covers costs paid for a vacation in case there's need to cancel.

Jewelry insurance

covers the cost to replace jewelry in the case of loss or theft.

liability coverage

insurance that covers injury or loss to other people, for which injury or loss you are responsible

property coverage

insurance that covers the contents of your home, such as furniture, television, bikes, appliances, and clothing

consumer rights

laws that protect people who make purchases

Life insurance

pays a certain sum of money in the case of death. The payment is made to the 'beneficiary.' Purchasing life insurance does not show weakness in your faith in God. Life insurance provides funds for the family in the case of a death, so having life insurance is a good stewardship decision.

Malpractice insurance

protects doctors, dentists, and other professionals from financial loss caused by law suits.

Home or homeowner's insurance

provides financial protection against disasters to your home. A standard policy insures the home itself and provides 'property coverage' for the things you keep in it.

Renter's insurance

provides property coverage for damages that occur to items inside a rental property.

Car insurance

provides protection in case of an accident or theft. It covers hospitalization costs that happen as a result of a car accident. Some policies include 'liability coverage' or coverage for the costs incurred by others involved in a car accident that's your fault.

Disability insurance

replaces a percentage of your gross income if an injury or illness prevents you from earning an income.

phishing

requesting confidential information over the internet under false pretenses to fraudulently obtain credit card numbers, passwords, or other personal data

deductible

the amount a person has to pay when making an insurance claim, with the remaining cost covered by the insurance company is the amount an individual has to pay before the insurance company will cover the remaining costs.

premium

the amount paid by the policyholder for insurance

identity theft

the crime of stealing an individual's personal information in order to gain from that person's finances

bodily injury limit

the most the insurance company will pay