Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Anatomy > Consumer- Chapter 9 > Flashcards

Consumer- Chapter 9 Flashcards

1
Q

Which of the following is not a huge financial risk (and therefore will not require insurance) if you had a full emergency fund of $500 or more?

A

A lost cell phone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The time between the disabling event and the beginning of payments in your disability coverage is called…

A

elimination period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A life insurance policy that covers a specific period of time is called…

A

term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The purpose of insurance is to…

A

transfer financial risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of the following is not a recommended way of lowering your car insurance premium?

A

Drop your auto insurance all together

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Which of the following types of insurance is not recommended for a young single adult?

A

life insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which of the following is NOT a recommended way to save on your health insurance?

A

You are young and health, you do not need insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A person becomes self-insured when…

A

their kids are grown, they have no debt, and they have a fully funded retirement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which of the following is true?

A

any kind of duplicate insurance is a bad idea

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which of the following statements about long-term care insurance is false?

A

You should not buy until age thirty. (you should wait until you are 60)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Which of the following statements about disability insurance is false?

A

disability insurance is not necessary if you have a good health insurance policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which of the following policies would be duplicate coverage for your health insurance

A

cancer and hospital indemnity insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called…

A

liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

T or F: After high school, you should have the following types of insurance auto, renters, health, and long-term care.

A

false

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

T or F: Renters insurance is not necessary if you don’t have a lot of expensive things.

A

false

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

T or F: Prepaid burial policies are a good idea.

A

false

17
Q

Any insurance with cash value or that combines insurance with investments is a bad idea.

A

true

18
Q

You should not buy identity theft protection that only provides credit report monitoring.

A

true

19
Q

Describes the type of coverage in an insurance agreement.

A

policy

20
Q

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

A

beneficiary

21
Q

A legally enforceable declaration on how a person wishes his or her property to be distributed after death.

A

will

22
Q

A specific amount of money that you pay when insurance only covers a portion of the costs.

A

out of pocket expense

23
Q

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

A

coverage

24
Q

The amount you must pay before you begin receiving any benefits from your insurance company.

A

deductible

25
Q

The amount of money you pay to help cover a portion of your medical costs

A

co-payment

26
Q

What does it mean to transfer risk?

A

“Transferring risk” is the transferring of risk from you to insurance companies that way you have some security in the case of an emergency or something abrupt happens to you to help protect you and your life.

27
Q

Explain the importance of liability protection.

A

Liability protection is important because it covers medical costs and property damage of the other driver if you get in a wreck and you are at fault.

28
Q

Why should life insurance not be used as an investment?

A

Life insurance should not be used as an investment because you should be self-insured at one point if you save, invest, stay out of debt, and have a solid financial plan. There are better, safer ways to grow your money rather than life insurance.

29
Q

Explain how someone becomes self-insured.

A

Someone becomes self-insured by saving, investing, staying out of debt, and having a solid financial plan. Someone becomes self-insured when they have a disciplined financial policy and save to stay debt-free.

30
Q

What are some unnecessary types of insurance? Why are these unnecessary?

A
  • Credit life/disability insurance: your term life insurance already covers it.
  • Credit card protection: you should avoid owning a credit card.
  • Cancer and hospital indemnity insurance: your health insurance already covers this.
  • Any insurance with cash value: anything that combines insurance with investments is a bad idea.
  • Mortgage life insurance: your term life insurance already covers it.

Anatomy (18 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions