Personal Finance - Insurance
Which of the following should be covered by renter's insurance?
A flood occurs and damages all your furniture
Which of the following is true?
Any kind of duplicate insurance coverage is a bad idea.
Which of the following policies would be a duplicate coverage for your health insurance policy?
Cancer and hospital indemnity insurance
Which of the following statements about life insurance is true?
Cash value insurance is normally for life and is more expensive than term life insurance because it funds a savings plan.
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
Claim
An amount of money you pay to help cover a portion of your medical costs
Co-payment
Amount you must pay before you begin receiving any benefits from your insurance company
Deductable
___________ insurance is designed to replace income that is lost due to short-term or long-term disability.
Disability
Which of the following statements about disability insurance is false?
Disability insurance is not necessary if you have a good health insurance policy.
Which of the following is not a recommended way of lowering your car insurance premiums?
Drop your auto insurance altogether
Which of these options is NOT a type of insurance?
Educational
The time between the disabling event and the beginning of payments in your disability coverage is called:
Elimination period
Insurance companies often use your ______________ to convince you to buy.
Emotions
After high school, you should have the following types of insurance: auto, renter's, health and long- term care insurance
False
Disability insurance offered through your employer is usually the most expensive coverage option.
False
Health insurance is optional.
False
If you are over 45 years old, you should get long-term care insurance.
False
If you're renting a house or apartment, you only need renter's insurance for the first few months.
False
It is cheaper to buy long-term disability insurance from the open market than from your employer.
False
It's a good idea to decrease your maximum pay.
False
Life insurance is a permanent need.
False
Life insurance is designed to pay off all your debt at the time of your death.
False
Pre-paid burial policies are a great purchase for any adult.
False
Prepaid burial policies are a good idea.
False
Renter's insurance is not necessary if you don't have a lot of expensive things.
False
You might consider dropping liability on your insurance coverage.
False
Moving assets into your name so that the government will pay for your aging parent's care is a _________ ______________.
Federal crime
Homeowner's coverage should include ________________ replacement cost.
Guaranteed
Which of the following is not a recommended way to save on your health insurance premium?
If you are young and healthy, you do not need health insurance.
To save money on your health insurance, you need to ____________ your deductible.
Increase
When shopping for insurance, use a(n) __________________ agent who shops a bunch of different companies to find the best rate for you.
Independent
Insurance that covers property damage and medical bills if you are at fault in a car accident or if someone gets hurt on your property
Liability
You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:
Liability
Which of the following types of insurance is not recommended for a young single adult?
Life insurance
You can keep car insurance rates low by:
Not filing claims for smaller repairs, instead pay cash
Specific amount of money that you pay when insurance only covers a portion of costs
Out-of-pocket expense
Describes the type of coverage in an insurance agreement
Policy
The amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
Premium
One way to keep your car insurance rate low is to __________ your deductible.
Raise
When buying identity theft protection, make sure it includes ___________ services.
Restoration
The purpose of insurance is to transfer ____________________.
Risk
Life insurance policy for a specific period of time is called:
Term
__________ life insurance is for a specific time period and is the cheapest way to buy life insurance.
Term
What is the most expensive time of your life?
The last 6 months
A person becomes self-insured when:
Their kids are grown, they have no debt, and they have fully funded retirement
The purpose of insurance is to:
Transfer financial risk
Any insurance with cash value or that combines insurance with investments is a bad idea.
True
Comprehensive coverage takes care of damage to your car that is not caused by a collision.
True
Duplicate coverage, or any extra insurance on top of your existing insurance, is not necessary.
True
Following the Five Foundations will help you to, one day, become self-insured.
True
Good identity theft protection includes restoration services.
True
Identity theft is the fastest growing white-collar crime today.
True
If you don't understand it, don't buy it.
True
If you have a fully funded emergency fund, you might consider increasing your stop-loss.
True
If your plan coverage includes an extended replacement cost, you need to update your plan at least once per year.
True
In order to decide if you should raise your deductible, you should find out how long it will take to break even.
True
Long-term care insurance covers nursing homes, assisted living, and sometimes in-home care.
True
Nearly 60% of workers in the US have health insurance through their employers.
True
Taking a driver's education course can save you money on car insurance.
True
There are scams and gimmicks in the insurance world.
True
You have a 1 in 3 chance of becoming disabled for 6 months or more at some point in your life.
True
You should not buy identity theft protection that only provides credit report monitoring.
True
_______________ policies are a really good buy because they add extra protection to your home and automobile insurance.
Umbrella
Which of the following plans include a savings plan as a part of the insurance?
Whole Life Universal Life Variable Universal Life *All of the above*
A legally enforceable declaration of how a person wishes his or her property to be distributed after death
Will
Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?
You lose your cell phone
Which of the following is not a benefit of having a will?
You only need a will if you have a large estate.
Which of the following statements about long-term care insurance is false?
You should not buy long-term care insurance until age 30.
Where can your identity be stolen?
Your mailbox The internet Your cell phone *All of the above*
When considering disability plans, look for a plan that covers ____________ of your income.
65%
What does having 80/20 coverage mean?
After a deductible has been paid, insurance pays 80% and you pay 20%
The recipient of assets passed on from the death of a friend or relative
Beneficiary
Applies to the amount of protection you have through an insurance company in the event of a loss
Coverage