Personal Finance Health and Life Insurance
premium
The sooner a person is likely to die, the more he or she will pay to have life insurance. That amount is called the
you
Who decides who receives the benefits of your life insurance policy?
insurance
a cooperative system of sharing the risk of possible financial loss
co-payment
a flat fee that must be paid each time you receive a health related service
preferred provider organization (PPO)
a group of doctors and hospitals that agree to provide medical services at prearranged fees
decreasing term policy
a life insurance policy which would pay the mortgage if the insured dies is an example of a
whole life insurance
a permanent policy for which the policyholder pays a specified premium for the rest of his or her life
whole life insurance
a permanent policy for which you pay a specified premium each year
beneficiary
a person named to receive the benefits from a life insurance policy
claim
a request for payment of losses
deductible
a specified amount a policyholder must pay per loss or per year
male
all other factors being equal, this person would pay more for life insurance than a female
conversion term policy
allows you to change from term insurance to permanent insurance at the end of the term
limited payment policy
allows you to have life insurance for your whole life, but only pay premiums for a set number of years
COBRA
allows you to keep your health insurance even after you've lost your job
peril
anything that may cause a loss
Coordination of benefits
combining the benefits from more than one health insurance plan
major medical insurance
covers large costs of extended illnesses or injuries
HMOs
emphasize preventative services
negligence
failure to take reasonable or ordinary care to prevent accidents
term policy
gives life insurance protection for a set number of years
individually
health insurance through a group plan is less expensive than buying health insurance
on the job
in order for benefits to be paid from Worker's Compensation coverage, the illness or injury must have occurred
hazard
increases the likelihood that a loss may occur
decreasing term
life insurance that pays less to the beneficiary as time passes is known as
risk assumption
managing risk by taking responsibility for the negative results of risk is known as
risk shifting
managing risk by transferring the risk of loss to an insurance company is known as
the policy holder
out of pocket limits limit the amount this person has to pay for a claim
doctor visits
physician expense coverage usually meets this cost
coverage
protection provided by an insurance policy
disability insurance
provides regular cash income when a person is unable to work because of pregnancy, non-work-related accident, or illness
increases the cost
smoking has this affect on life insurance
risk reduction
taking precautions to lower the likelihood that a risk will cause harm is known as
cash value
the amount a life insurance policy is worth if it is terminated
premium
the amount paid by a policyholder for insurance protection
universal life policy
the most expensive type of life insurance is a
dependents
the need for life insurance is greater if you have
coinsurance
the percentage of the medical expenses the policyholder must pay in addition to the deductible
social security
this provides disability benefits
1. dental insurance 2. vision insurance 3. disability insurance
three supplemental insurance policies which can be purchased by an individual
