Personal Finance Chapters 9 and 10 Flashcards
how do most people get health insurance?
Through their employer
what is the average co-pay?
$20 - $30
deductible
amount you have to pay before insurance can pay the rest
what are the governments two insurance programs?
medicare and medicaid
medicare
for people older than 65
medicaid
for people with low income, it covers everything
workman’s compensation
money you get for being injured on the job
Obama care/affordable care act of 2010
eliminates co-pay for preventative care and allows children to be on their parent’s health insurance until they are 26
what are the 4 methods of estimating your life insurance
easy, dink, non-working spouse, family need
easy
70% * 7 * income
dink
(duel incomes, no kids) funeral + 1/2 debts
non-working spouse
the age of your youngest child * 10,000
HSA
a health savings account that lets you set aside pretax money for medical costs
HRA
a health reimbursement arrangement is a health spending account provided and owned by an employer
FSA
a flexible spending account, pre-tax
beneficiary
people who get the money from your life insurance after you die
why do people buy life insurance
to protect your family from financial loss
term insurance
NOT permanent insurance
annuity
fixed sum of money paid to someone each year, for the rest of their life
cash value
a component in life insurance that grows tax-free over the course of the policy’s life
double indemnity
under certain circumstances, you can get double the face amount of an insurance policy
nonforfeiture clause
insurance policy clause that says an insured person can receive full or partial benefits after a lapse of nonpayment
nonparticipating policy
does not pay dividends to the holder of the insurance policy
participating policy
pays dividends to the holder of the insurance policy
rider
an attachment added to a document in order to modify it
whole life insurance
life insurance that pays a benefit on the death of the insured and also accumulates a cash value
