unit 6: insurance Flashcards
beneficiary:
the recipient of assets passed on from the death of a friend or relative
claim:
paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
coverage:
applies to the amount of protection you have through an insurance company in the event of a loss
premium:
financial cost of obtaining an insurance cover, paid as a lump sum or in installments during the duration of the policy
copayment
a fixed amount you pay for a coveted health care service after you’ve paid your deductible
policy limit:
the maximum benefit an insurance company will pay a policy holder if/when an insured event occurs
deductible:
amount you must pay before you begin receiving any benefits from your insurance company
liability
the state or quality of being obligated according to law or equity
out-of-pocket expense:
specific amount of money that you pay when insurance only covers a portion of costs
policy:
describes the type of coverage in an insurance agreement
will:
a legally enforceable declaration of how a person wished their property to be distributed after death
what is the purpose of insurance?
to transfer risk
why is insurance a product we buy but wish to not use?
By using our insurance, It means something went wrong like an accident
what does insurance protect?
your life, your work, etc.
why do you need liability coverage?
it covers the medical costs and property damage of the other driver if you get in a wreck and it’s your fault
