Personal Finance: Insurance

Front

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses

Back

Insurance

Front

The money paid to an insurance company to purchase a policy

Back

Premium

Front

The chance of loss from an event that cannot be entirely controlled

Back

Risk

Front

The out‐of‐pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss.

Back

Deductible

Front

A contract between the insurance company and the insured that states the exact terms of the policy including what risks are covered and how much will be paid for any losses

Back

Policy

Front

Type of insurance for financial support after a family member's death in an accident.

Back

Life

Front

What type of insurance is used when Sally visits the doctor for strep throat?

Back

Health

Front

What type of insurance replaces earnings if someone is in a car accident and cannot work? Options: Property and liability, Health, Life, Disability, Workers’ compensation

Back

Disability

Front

Liability insurance covers accidental harm that may be caused to other people or property.

Back

True

Front

A beneficiary is the individual who takes out the life insurance policy.

Back

False