Chapter 9- Insurance Flashcards
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
Claim
Applies to the amount of protection you have through an insurance company in the event of a loss
Coverage
Amount you must pay before you begin receiving any benefits from your insurance company
Deductible
The state or quality of being obligated according to law or equity
Liability
Specific amount of money that you pay when insurance only covers a portion of the costs
Out-of-pocket expense
Describes the type of coverage in an insurance agreement
Policy
Amount you pay monthly, quarterly, semiannually, or annually to purchase different types of insurance
Premium
A legally enforceable declaration of how a person wishes his or her property to be distributed after death
Will
Insurance transfers _______
risk
7 Types of Coverage You Need:
- Homeowner’s or Renter’s
- Auto
- Health
- Disability
- Long-Term Care
- ID Theft
- Life
The best way to keep you premiums down is to raise your……
deductible
Medical Payment Coverage
pays for all accidental medical costs within 3 years of an accident
Collision Insurance
covers damage to your car if it is hit by another car or object
Comprehensive Coverage
Takes care of non-collision car damage (natural disasters)
Uninsured Motorist Protection
Covers cost if you are injured by an uninsured motorist or if you are injured in a hit and run incident
Homeowner’s insurance should be (guaranteed, extended) replacement cost
Guaranteed
An umbrella policy gives you additional _____ protection
liability
Maximum out-of-pocket expense
Stop-Loss
HSA
Health Savings Account (tax-sheltered)
Basic Health Insurance policies cover…..
hospital, surgical, physician expenses
Dental and Eye Insurance plans cover…..
only dental work and eye care expenses
Copayment
Amount of money you pay to help cover a portion of your medical costs
You should not buy long term are insurance until age…..
60
At least ….. percent of people will require long term care after age 60
69
Disability insurance replaces …..
Income
Own Occ disability
Available for two years, covers income if you cannot perform the job you were trained to do
Short term policies are a (good, bad) idea
Bad
Disability should be for ….% of your current income
65%
Elimination period
Time between disabling event and when payments actually begin (long elimination period= low premium)
ID Theft protection should cover ….. but not ……
restoration, monitoring
Term Life Insurance
cheap, easy to understand, no savings plan, for a specified period
Cash Value Life Insurance
more expensive: funds a savings plan
Self-Insured
When you are financially stable enough to insure yourself with no crippling financial consequences
Level Term
When you pay the same amount for the entire term of the policy
The recipient of assets passed on from the death of a friend or relative
Beneficiary
