Chapter 11

false

cash value insurance is a good way to invest since it has a savings plan inside it

out of pocket

cost that insurance doesn't cover, cost you pay

collision

cover damage to a car if there is an accident

long-term care

covers assisted living, in-home nursing, or nursing home care

comprehensive

covers damage to a car if a tree falls on it

auto

covers damage to a vehicle

identity theft

covers restoration and monitoring services

why do you need renter's insurance if you don't own valuable items?

covers the actual building or property that you're renting

renter's

covers the contents of an apartment

life insurance

designed to replace income lost due to death

disability

designed to replace income lost if you cannot perform your job

false

if you have an older car, you can consider dropping liability

term

life insurance policy for a specific period of time

true

neither accidental death nor cancer insurance are good insurance policies to carry

ways to save on auto insurance

raise your deductible get good grades shop around for rates ask for discounts

true

short-term disability is covered by your emergency fund, so only buy long term disability

10

the amount of life insurance you should have is __ times your income

premium

the amount you pay for an insurance policy

false

the best type of identity theft insurance only provides credit report monitoring

true

the deductible om any insurance is the portion you have to pay before insurance covers any expenses

true

the purpose of insurance is to transfer risk

elimination period

the time between the disabling event and the beginning of payments

raise the deductible, shop around for rates, take advantage of applicable discounts

what can you do to decrease the cost of insurance policies?

when do you need renter's insurance

when you rent anything at all, not when you own it but when you're using a building or renting something out for longer periods of time.

explain why life insurance is not a good savings plan

you can make more money in the long run by investing the money and doing it by yourself