Insurance
tell how much you will pay out of your pocket if you have a $500 deductible plan, with an 80/20 co-pay of the next $5000, on each of the following bills. A. $490 B. $900 C. $3000 D. $7500 E. $53,000
A. $490, because you haven't reached your deductible yet. B. $580. $900-$500(deductible)=$400. $400x20%=$80. $500+$80= $580. C. $1,000. D. $1,900 E. $5,000, because it is the maximum you can pay.
If you crashed your car into a house, which kind of insurance would you use: Homeowners Insurance Renters insurance disability insurance auto insurance
Auto Insurance
Insurance to Avoid
Credit Life/disability credit card protection cancer and hospital indemnity insurance accidental death any insurance with cash value, investments or refunds prepaid burial policies mortgage life insurance any kind of duplicate coverage
claim
a demand for payment under an insurance contract for the estimated or actual amount of loss
policy
a formal written contract of insurance
rating bureau
a state supervised organization that classifies and computes rates, gathers data, and measures individual risk hazards.
Automobile Insurance
a type of insurance that covers property damage or legal liabilities in the event of an auto accident, or property damage in the event of theft
Health insurance
a type of insurance that covers the cost of both planned and unexpected health services. family $600-$1000 a month co-insurance. 80/20 90/10 70/30
renters insurance
a type of insurance that replaces personal property if it is damaged due to events such as theft, fire and smoke, and vandalism in a rental residence. also covers legal liabilities of injuries suffered by other individuals in the insured person's residence. does not cover earthquake or flood damage.
disability insurance
a type of insurance that replaces the income of the insured individual of he or she cannot work due to injury or illness.
Homeowners Insurance
a type of insurance that replaces the insured's home and personal property if they are damaged due to events such as theft, fire and smoke, and storms. also covers legal liabilities of injuries suffered by other individuals in the insured person's residence. does not cover earthquake or flood damage. covers your home and goods/assets (replacement value) price depends on what the house is worth and what it will cost to replace it. types of goods are valuable items. good or bad credit.
Whole Life Insurance
a type of life insurance that a pays a benefit no matter when the person dies. more expensive, no end date, can pay back as a retirement fund (savings plan).
Term Life Insurance
a type of life insurance that pays a benefit only when a person dies during the term or time period of the policy. cheaper, with certain end date
Supplimentary insurance
above and beyond
Insurance
an agreement in which an individual pays a company to protect him or her from possible loss or damage. can be a property or financial loss.
Life Insurance
an insurance that pays a sum of money to a beneficiary when the insured individual dies
3 ways to handle risk
avoid it assume it transfer it
What kind of insurance do you need after high school?
car health identity theft renter's
collision insurance
covers a loss to the insured's vehicle caused by its impact with another vehicle or object
Auto Liability Insurance
covers other people's property when you are at fault. by law you must have it. covers- bodily injury to others, property damage, first aid, court costs
Auto Comprehensive
covers things that you can't control. things that hit you.
Auto Insurance Price Cuts of a premium are based on:
credit history, driving records, age 25, home owner, multicar, good student (good grades), type of vehicle, sex, 15-20% down
property damage
damage to tangible property
which of the following is not a type of insurance homeowners auto deductible identity theft
deductible
Appraisal
estimated amount of damage to a vehicle and the cost to repair
true or false: you always want the lowest possible deductible because it means you will pay less out of pocket in case of a loss
false
The 7 basic types of coverage needed
homeowner's or renter's insurance auto insurance health insurance disability insurance (when you are established in your career) long-term care insurance (when you are 60 or older) Identity theft protection life insurance
if a person in your house was bitten by your dog, which type of insurance would you be covered under? life insurance health insurance disability insurance homeowners insurance
homeowners insurance
Auto Medical Expanse
hospital expense for you and your passengers, ambulance fees, funeral fees
bodily injury
injury to the body of a person
80/20
insurance company will pay 80% and you have to pay 20% up to a certain amount called out of pocket limit. then insurance company covers the remaining costs. you must meet the deductible first.
Life Insurance is NOT used for: Burial Expenses Investing in the stock market providing for dependents
investing in the stock market
Auto Underinsured/Uninsured
it provides protection in an event that damage is caused by a motorist that has no insurance or is underinsured.
higher deductible means
lower premiums
exclusion
parts of an insurance contract that excludes coverage of certain perils, persons, property, or locations
Auto Collision
pays for loss or damage to your vehicle caused by collision or upset when you are at fault. hit and run. covers your vehicle.
no-fault insurance
pays for medical and hospital expenses and loss of income - regardless of who is at fault
liability insurance
pays on behalf of the insured for certain types of injury to others. you are at fault. fixes the other person's vehicle
which is not a kind of health insurance: point-to-point service plan point-of-service plan health maintenance organization preferred provider organization
point-to-point service plan
comprehensive coverage
protects against any loss or damage to an automobile except those caused by collision or by upset
if your mp3 player is stolen from your apartment, what type of insurance would it be covered under? auto homeowners renters life
renters insurance
Two types of life insurance
term and whole
deductible
the amount of a claim that the policyholder has agreed to pay. this is paid first.
A deductible is: the discount you deduct from your premium the amount of loss you pay the amount that is deducted when you buy a policy the discount received by a health care provider
the amount of loss you pay
premium
the amount that a policyholder agrees to pay to the insurance company for an insurance policy
beneficiary
the individual or group of individuals named to receive the benefit of a life insurance policy
basic limits
the lowest coverage amount
limit of liability
the maximum amount that an insurer agrees to pay in the case of loss under policy contract
dependents
the persons who depend on someone for their livelihood. most often these are minor children and the spouse, but can be adult siblings, adult children, and elderly parents
coverage
the things that are protected or "covered" in an insurance policy
Most insurance companies sell you insurance because: the government requires them to they are charitable institutions with a mission to reduce hardship they generally take in more in premiums than they pay out
they generally take in more in premiums than they pay out
one of the two types of life insurance is: two-term whole-life terminal
whole-life
