Personal Finance Final Exam
Which of the following is not true as it relates to the cost of health care?
Better claim handling and processing has helped reduce the cost of health care
Hospitals, doctors, and patients have enough incentive to make the most economical use of health care services.
False
Since most workers have employer-sponsored disability coverage and are also eligible for Social Security and worker's compensation, there is very little demand or need for individual disability insurance.
False
Technological advances are one of the things helping to keep the cost of health care from escalating further.
False
The best disability plans pay you if you are not able to work at any job, not just your regular job.
False
The constitutional beneficiary is the person who will receive the death benefits if the primary beneficiary is no longer living when the policyholder dies.
False
The only reason a person would buy life insurance is to eliminate or substantially reduce the financial consequences of that person's death by providing income to his or her dependents.
False
Certain federal regulations ensure that individuals can maintain continuous health care coverage.
True
Life insurance may not be that important for a couple who both work full-time and who could each be self-sufficient without the other person's income.
True
Most people obtain health insurance through group plans offered by employers.
True
Private health insurance plans contain all of the following coverage, except
nursing home insurance
Life insurance may be obtained through all of the following except
the federal government
How much would be owed by the patient on a $3,000 bill if a PPO uses a discount on charge arrangement wherein the percentage paid to the provider is 70% and the patient's co-pay, as specified by the PPO, is 20 percent?
$420
Unfortunately, you have had several medical procedures in the current year with the following bills, $2,000, $9,200, $18,000, $5,000, and $3,500. Your deductible is $2,400, after which your co-pay is 10%. Your policy also includes a $6,000 out-of-pocket maximum clause. How much of the total bills are you responsible to pay?
$5,930
Tom purchased disability insurance that will provide $1,400 per month in benefits. His employer carries a disability policy on Tom that will provide an additional $600 per month in benefits. If Tom's monthly budget is $2,500 and Tom is anticipating no additional disability benefits from any other source, what is Tom estimating as his work-related monthly expenditures.
$500
How much of a $2,000 medical bill would you pay if your policy contains a $400 deductible and a 10% coinsurance clause?
$560
Which of the following is not true regarding employer disability insurance?
Disability benefits are provided for very long periods, usually up to 30 years
Which of the following is not true about disability insurance?
Employer paid disability insurance policies continue in force after you have separated from the employer
Because of COBRA, you can continue to remain covered by your employer's health insurance plan for no more than one year after you stop working for your employer.
False
Buying health insurance through employer-sponsored plans is somewhat more expensive than buying your own policy individually.
False
Which one of the following benefits is most often available through an employer?
Health insurance
Which of the following is a reason to buy life insurance?
Provide a college fund for your children in the event of your early death
Which of the following is not a disadvantage of an HMO plan versus a PPO plan?
The HMO plan may be less expensive
Life insurance proceeds are generally not taxable to the
beneficiary
If you buy a term insurance policy with a conversion option, this means that you
can convert your term policy to a whole life policy during the conversion period
Regarding the definition of disability,
it varies from one disability policy to another
Life insurance affects everything except your
life expectancy
In purchasing disability insurance, you should consider all of the following except the
probationary period
If you are no longer covered under your parents' or guardian's health insurance plan, the Affordable Care Act requires you to
purchase an individual health insurance plan or face a tax penalty
The cost of health care has risen dramatically in recent years due to all of the following, except
reduced litigation costs
Disability income is
tax-free if you pay the disability insurance premiums
Life insurance would be necessary in all of the following situations, except
you are single and have no dependents