Insurance

Choose the statement that is true about health insurance.

You should always have health insurance, regardless of your circumstances.

Uninsured Coverage

A policy that pays for repairs in the case that someone crashes into you and they do not have insurance.

Insurance Premium

The monthly payment one must pay to an insurance company. The price is decided by the insurance company monthly based on how likely it is that someone will have an accident.

An example of a risk management strategy is...

Wearing a seat belt while driving and wearing a helmet when biking.

Which of the following is a reason someone should get health insurance?

Health insurance protects you financially from medical emergencies.

Life Insurance

Help deal with costs such as funeral expenses and may provide replacement income for family members. These costs could easily reach tens of thousands of dollars.

Renters Insurance

Can help cover costs to replace personal items that were lost, stolen, or damaged. This may also include significant severe weather damage to the place you are renting.

Comprehensive Insurance

Covers damage to your car that is not from an accident, such as a dented roof from a falling branch.

Factors that can increase car insurance premium

Driving Record (Shows past accidents and moving violations so better record = lower premium), Age (Younger and Older pay higher premium as they are in more accidents), Location (Places like cities and suburbs have more accidents so people in small towns and rural communities have lower premiums), Vehicle (A car or truck with safety features bring about lower premiums than other cars without safety features), Completion of a driver's education class (or other things that make it less likely you'll get into an accident)

Disability Insurance

If you are disabled and can't work, disability insurance may pay some or all of your income while you recover, depending on the policy.

Liability Insurance

In case you cause an accident. It pays for the damages and medical costs of the people you hit.

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?

Insurance

How can insurance protect you from financial loss?

Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.

What is insurance?

Insurance companies offer policies to protect you from life events that can be expensive. Generally, you choose a policy and pay a small amount each month to be protected. The insurance company promises to pay for some or all of the expenses if you experience a covered event listed in your policy.

Insurance Tips

Insurance plans usually cost more than just the monthly premium. Remember to look at the total cost, which includes the deductible, co-payments, and coinsurance. There may also be an "out-of-pocket" maximum to your plan.

Liability insurance is...

Insurance that will pay for injury to another drive an/or damage to their car if you are in an accident.

Collision insurance is...

Insurance that will pay to get your car fixed in the event of an accident.

Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...

Insurance.

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called...

Liability Insurance.

Which of the following is not an advantage of having health insurance?

People with health insurance can skip lines in emergency rooms.

Term Life Insurance

Provides coverage for a certain time period, usually 10, 20, or 30 years. Insurance premiums for these policies are typically less expensive than whole life for the same amount of benefit.

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

Risk Management Strategies

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

Risk.

Deductible

The amount you must pay before the insurance company will pay the covered amount. Insurance companies charge deductibles so you won't submit a claim for every little dent and scratch.

A deductible is paid by...

The policyholder.

An insurance premium is paid by...

The policyholder.

Disability Insurance Tip

There are short-term and long-term disabilities. You typically must be covered by a policy or program, submit a claim, and then be approved by the insurer before receiving benefits.

What's in it for the insurance company?

They spread out their risk over tens of thousands of clients and bet that they will have to pay out less than they earn.

Collision Insurance

This covers the car of the insured person and pays for repairs after an accident or cash compensation if the car can't be repaired. This type of coverage is usually optional.

Health Insurance

Without health insurance, you may end up paying more than $10,000 for medical expenses that would have cost you only $100 with health insurance. High medical costs and a lack of insurance have led many people to go bankrupt trying to get medical care.

Health Insurance Tip

You may choose health insurance through your employer, but you should also consider Medicaid, the Children's Health Insurance Plan (CHIP), state insurance plans, individual insurance health plans, or maybe even your parents' health insurance plan if you're under 26. It is also more affordable to purchase life insurance when younger and healthier rather than older with a medical condition.