Financial Literacy: Study Guide

What can insurance protect you from?

financial distress and spending all your money

How is having a security system for your home a risk management strategy?

helps minimize crime (robbery, etc.)

What is a risk management strategy you could use to protect your home?

home insurance, alarms, cameras

If you get into a car accident, ________ may increase because you will be considered a risk.

insurance premium

Buying a home security system is an example of protecting your home against______.

intruders

A deductible is paid by.....

policyholder

An insurance premium is paid by.....

policyholder

How can insurance protect you from financial loss?

your deductible is all you have to pay while insurance covers most of the cost

What should you NOT use a loan to purchase?

clothes & vacations

When filing an insurance claim, the policyholder must pay a___________________,which is the amount you owe before the insurance will cover the rest of the bill.

deductible

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

risk management strategies

What is NOT an example of a risk management strategies?

texting while, talking on the phone, etc. ...

An insurance deductible is.....

the amount you pay out of pocket

An insurance premium is.....

the amount you pay per month

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

they get insurance

Why is it important to have insurance?

to protect you from financial stress of an accident

What color are your.....

;)