Chp 11 Vocab

Question 1

Covers of damage to a vehicle

Answer 1

Auto insurance

Question 2

The recipient of assets passed on from the death of a friend or relative

Answer 2

Beneficiary

Question 3

Method used to evaluate the wisdom of a financial decision by determining the length of time it will take for the cost of the decision to be recouped

Answer 3

Break even analysis

Question 4

Also known as permanent life insurance. Premiums include a death benefit and I plan to build savings with the policy. Two main types our whole life and universal life. Significantly more expensive than term life insurance

Answer 4

Cash value insurance

Question 5

Paperwork filed with an insurance company in order to get them to cover a loss

Answer 5

Claim

Question 6

Portion of auto insurance that covers loss is due to vehicle damage in an accident

Answer 6

Collision

Question 7

Pays for damage to your car that is not a result of an accident

Answer 7

Comprehensive

Question 8

In regards to health insurance, paying a set amount per medical visit

Answer 8

Co- pay

Question 9

Applies to the amount of protection you have to an insurance company in the event of a loss

Answer 9

Coverage

Question 10

Amount you have to pay out of pocket for expenses before the insurance company will begin to cover all or a portion of the remaining costs

Answer 10

Deductible

Question 11

Amount of time that elapses after a disabling event before the insurance company begins to pay benefits

Answer 11

Elimination period

Question 12

Part of homeowners insurance policy that pays for the full cost of replacing damaged property without a deduction for depreciation and without a dollar limit

Answer 12

Guaranteed replacement cost

Question 13

A health insurance plan for self-employed people containing a large deductible

Answer 13

HSA

Question 14

Covers u in the event of illness or injury

Answer 14

Health insurance

Question 15

Policy that covers a loss due to damage,Theft, or injury within one’s home

Answer 15

Homeowners insurance

Question 16

This means you pay the same amount for the entire term of the policy

Answer 16

Level term

Question 17

Policy that protects an individual in the event of a lawsuit due to injury on ones personal property or as the result of an automobile accident

Answer 17

Liability insurance

Question 18

Type of insurance designed to replace income lost due to death

Answer 18

Life insurance

Question 19

Policy that covers the cost of nursing home or in-home car; recommended for everyone over age 60

Answer 19

Long term insurance

Question 20

Disability insurance designed to replace lost income for a period of five years or greater

Answer 20

Long term disability

Question 21

The amount an insurance company will pay before you are dropped from coverage

Answer 21

Maximum payment

Question 22

Insurance policy that pays off the remaining balance of the insured persons mortgage at death

Answer 22

Mortgage life insurance

Question 23

Type of insurance that provides an income in case the insured becomes unable to perform the job he/she was educated or trained to do

Answer 23

Occupational disability

Question 24

What you have to pay

Answer 24

Out of pocket

Question 25

Disabilities that are ongoing and are not expected to end

Answer 25

Permanent disability

Question 26

Describes the type of coverage in an insurance agreement

Answer 26

Policy

Question 27

Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance

Answer 27

Premiums

Question 28

Covers the contents of an apartment

Answer 28

Renters insurance

Question 29

Part of identity theft insurance that assigns a counselor to clean up the mess made when your identity was stolen

Answer 29

Restoration services

Question 30

Condition of wealth at which time one no longer needs an outside insurance policy to cover a loss

Answer 30

Self insured

Question 31

Minimal period of incapacitation; often used as an insurance policy that insures one’s income for the immediate future following an incapacitation event

Answer 31

Short term disability

Question 32

Total out-of-pocket expenses for health insurance; once reached, insurance will pay 100 percent

Answer 32

Stop loss

Question 33

Life insurance coverage for a specified period of time

Answer 33

Term insurance

Question 34

High limit insurance policy that acts as a protective covering over your home and car insurance against liability caused by an accident

Answer 34

Umbrella liability insurance

Question 35

Type of life insurance policy, similar to cash value but with better projected returns

Answer 35

Universal life

Question 36

Type of life insurance that is similar to cash value, but buys into mutual funds to project better returns

Answer 36

Variable life

Question 37

Type of insurance that contains a low yield savings plan within the insurance policy; more expensive than term life insurance

Answer 37

Whole life insurance