chapter 9 the role of insurance video

Copays

(also copayments or coinsurance) the payments an individual makes each time they get medical service​​​​​​​

You should buy a life insurance policy that's _______ times your annual salary.

10-12

You can remain on your parents' health insurance plan until you're:

26 years old

Comprehensive coverage pays for loss or damage to your car caused by _____________.

Anything other than a collision

Own occupation disability insurance will pay you if you . . .

Can't do the job you were educated to do

Medicare and Medicaid are examples of . . .

Government programs for public health insurance

______ will cover you if someone steals your personal information.

Identity theft protection

Insurance companies look at ____________ to determine the cost of your premium.

Life expectancy charts, your weight, your age, your hobbies and whether you smoke

Getting good grades, driving safely, and driving an older car are examples of ways you can. . .

Lower your auto insurance costs

In return for paying the insurance company a fee, they will . . .

Pay for certain expenses or damages

Disability insurance isn't intended to make you ____ but to ____ when you need it.

Rich; pay your bills

What is a deductible?

The amount you have to pay before the insurance company will make a payment.

The cap on the total amount of benefits you can get from your insurance company is called ___________.

The lifetime limit

Umbrella insurance is coverage for . . .

Things that fall outside of your home and auto insurance policies

________ protects you if you're the victim of a hit-and-run accident.

Uninsured/Underinsured Motorist Protection

Through the Affordable Care Act, you can stay on your parents' health insurance until . . .

You turn 26 years old

A high-deductible health plan with lower monthly premiums is a good option for ___________.

Young, healthy people

Personal Injury Protection (PIP)

a component of auto insurance that pays for medical expenses, lost wages, and other financial losses of the driver and passengers of the policyholder's vehicle

Claim

a formal request by a policyholder to their insurance company for compensation for a covered loss​​​​​​​

High-Deductible Health Plan (HDHP)

a health plan with a high minimum deductible for medical expenses​​​​​​​

Dependent

a person who relies on someone for financial support​​​​​​​

Health Insurance Marketplace

a platform where individuals, families, and small businesses can compare health insurance plans​​​​​​​

Health Savings Account (HSA)

a tax-exempt savings account dedicated to health care costs; only available for individuals on a high-deductible health plan (HDHP)

Long-Term Care Insurance

a type of insurance that covers some or all of the costs of nursing home care, assisted living, in-home care, and other end-of-life care​​​​​​​

Disability Insurance

a type of insurance that will replace a portion of the policyholder's income in the event that the policyholder becomes disabled and is unable to work

Affordable Care Act (ACA)

also known as Obamacare; the health care reform law enacted in 2010, intended to make affordable health insurance more available​​​​​​​

Insurance

an arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer

Whole life insurance is also called each of the following terms except:

beneficial

Death Benefit

benefit paid to the beneficiaries after the policyholder dies​​​​​​​

_______ protects you from paying for damages to your car in a collision.

collision insurance

What's the payment you make each time you visit the doctor?

copay

Health Insurance

coverage for an individual's (or family's) medical expenses from illness or injury

The amount of money the insurance company agrees to pay for an incident is called ___________.

deductible

Your ________ is the amount you have to pay before insurance pays.

deductible

A(n) ______ is someone (typically a child) who relies on you financially.

dependent

People who rely on you financially are called your _____________.

dependents

Which insurance covers you if you're injured and can't work for a period of time?

disability

This type of home insurance covers the structure of your home.

dwelling insurance

If you're young and healthy, medical insurance is not as necessary.

false

You need long-term care insurance before you turn 60 years old.

false

Most insurance companies allow a _______, during which you can pay your premium before you lose your coverage.

grace period

Self-Insured

having enough money saved and invested so a spouse or loved one could live off of it when you die, eliminating the need for life insurance​​​​​​​

Homeowners insurance costs are ______ in states that are more susceptible to hurricanes, floods or tornadoes.

higher

The purpose of life insurance is to replace your ___________ when you die.

income

Your _______ has all the information you'd need in case of an accident.

insurance card

It's wise to have _______ because even if you're a great driver, there are plenty of people who aren't.

liability insurance

The purpose of _______ is to transfer financial risk.

liability insurance

Actuarial Life Table

life expectancy chart used by insurance agents to figure out life insurance premiums for an individual based on a variety of factors

Term Life Insurance

life insurance for a specified amount of time; at the death of the policyholder, the insurance company pays the death benefit to the beneficiaries​​​​​​​

_______ will provide money to replace lost income for years—even up to retirement.

long term disability

If you're unable to live in your home while it's being repaired, _______ coverage will cover those additional living expenses.

loss of use

Umbrella Insurance

optional extended liability coverage that can be added to auto and homeowners policies

The _______ indicates the most you would pay for health insurance in a year.

out-of-pocket insurance

Life insurance guarantees your loved ones get a certain amount of money when you _________________.

pass away

Beneficiaries

people who are designated by the policyholder to receive the death benefit of a life insurance policy

What type of insurance pays for the treatment of injuries and losses to the driver and passengers?

personal injury protection

Supplemental Insurance

plans to cover expenses and services not on typical policies

The money you pay each month for health insurance is your ________.

premium

HDHP insurance with a Health Savings Account can save you money on what?

premiums

Liability Insurance

protection against claims resulting from personal injury or property damage as the result of an auto accident

Collision Insurance

protection for damage to your car resulting from a collision with another car or object

Renters Insurance

protection for destroyed or stolen personal property for a renter

Comprehensive Insurance

protection for loss or damage to your vehicle caused by something other than a collision (such as vandalism)​​​​​​​

Homeowners Insurance

protection for losses to a private residence and the possessions within it, as well as liability coverage against accidents in the home or on the property

Uninsured/Underinsured Motorist Protection

protection for you and passengers if you're hit by an uninsured or underinsured motorist, or if you are the victim of a hit-and-run

_______ covers loss to your personal items but not the building.

renters insurance

Insurance helps you transfer the _________ from your bank account to the insurance company.

risk

You can save money on life insurance by getting a(n) ________ policy.

term life insurance

Identity Theft

the act of fraudulently gaining and using the personal information of someone else, usually for financial gain​​​​​​​

Coverage

the amount of liability protection offered to an individual through an insurance policy​​​​​​​

Premium

the amount of money paid for an insurance policy​​​​​​​

Deductible

the amount of money you will pay out of pocket before the insurance company will make a payment​​​​​​​

Grace Period

the amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse (break) in coverage​​​​​​​

Policy

the contract between an insurance company and the insured individual

Lifetime Limit

the maximum amount of lifetime benefits a person can receive from their insurance company

Out-of-Pocket Maximum

the most a policyholder has to spend for covered services in a year

Elimination Period

the period of time between when a doctor confirms a disability and when the policyholder receives a disability payment​​​​​​​

Subsidizing

the practice of employers paying for a portion of their employees' insurance premiums​​​​​​​

Renters insurance will cover you and your belongings if there is ever a fire, theft, or vandalism.

true

Extra liability coverage on top of your homeowners and auto insurance is called _______.

umbrella insurance

Don't get sucked into the __________ scam.

whole life insurance