ECON Lowdown Insurance: Managing Risk and Balancing Responsibility with Affordability

Which of the following is the term for the money people pay when they buy insurance?

Premium(s)

Permanent life insurance lasts until age 100 and never expires, but term insurance is for a set time period.

True

Life insurance doesn't require a deductible from the person(s) designated to receive the money, also known as the ________________.

beneficiary

For most types of insurance, the company does not pay 100 percent of the loss. For instance, health insurance often requires a ________________ for office visits.

copayment

In the event of a claim on an auto or home policy, the payment is generally reduced by the amount of the ________________.

deductible

Complete the following sentences with the correct combination: The ________________ the potential for loss, the higher the premium. The higher the deductible, the________________ the premium.

higher, lower

People often buy insurance to transfer ________________.

risk