Everfi

Deductible

Amount you are personally required to pay out of pocket toward each claim before your insurance kicks in

Premium

Amount you pay the insurance company for coverage. Premium payments may be due all at once or divided and paid on a regular basis usually monthly

Deductions

Amounts other than taxes that have been taken out of your paycheck such as health insurance or retirement

Federal income tax

Based on how much money you earn each year the federal gov charges income tax for everyone who earns money

State income tax

Based on how much you earn annually the percentage of your income tax that is taxed varies between states some states don't charge a state income tax

Property tax

Based on the value of owned property like land buildings or houses the property tax rate depends on your state loan cap jurisdiction and the value of your property

Co pay

A fixed fee that you pay for covered medical services

Capital gains tax

Charged on any profit you make from selling something at a higher price than you bought it capital gains are usually from the sale of stocks bonds or property

Sales tax

Charged on items you purchase. Most states charge sales tax every time you buy something. The sales tax percentage varies across states

Insurance policy terms

Coverage premium claim deductible co pay

Types of taxes

Federal income tax state income tax sales tax property tax capital gains tax

401(k)

Optional retirement savings plan sponsored by your employer

Coverage

Refers to range of protection you are eligible to receive from your insurance plan

Claim

Request you make to ur insurance company for payment based on the terms of your insurance

Which of the following taxes are charged on items at the time of purchase

Sales tax

Medicare

Tax that pays for health care for people aged 65 and older

Social security

Tax that pays for the retirement benefits for people who are currently retired and for the future retired population

State income tax

The income tax paid to the state you live and or work in the amount of income tax varies by state and some states don't have income tax at all

Which of the following best describes how auto insurance companies manage risk?

The insurance company balances low risk drivers with high risk drivers. The insurance company charges higher rates to higher risk drivers