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