Midterm Flashcards
Premium
The amount you pay for an insurance policy
Insurance
A means of guaranteeing your financial protection against various risks
Coverage limit
Maximum amount the insurance company will pay if you file a claim
Deductible
Amount of a loss you must pay out of your own packet before the insurance company will step in and pay the rest
Disability
Insurance protecting your earning power, pays you an income when an illness or injury prevents you from working several weeks/years
Liability
Insurance protects you in case you’re legally responsible for unintentionally injuring someone or damaging property
Collision
Covers repairs for damage you cause to your car caused by an accident whether it involves another vehicle or object
Comprehensive coverage
Covers fire damage to your vehicle, break ins, vandalism, or theft as well as natural disasters
5 steps to financial planning
- Set smart goals
- Analyze info
- Create plan
- Implement plan
5 Monitor/Modify plan
What is risk? Name two ways to manage risk
Risk- the chance of loss from some type of danger
Manage: Avoid risk, reduce risk w protection, accept risk, share risk
Co-pay
A fixed payment you pay at time of service
Freeware
Scam to get personal info
Phishing
Form of an email/pop up message looks like its from credit union, bank, credit cats company indicating problem w your account
Spyware
Bad side effect of free downloads, monitors/controls your computer use
Fixed expense
Cost the same amount every time
