Front

What is the main purpose of insurance?

Back

To reduce risk.

Front

What is a deductible in insurance?

Back

The amount you have to pay before the insurance company will pay anything.

Front

Which of the following is NOT typically covered by a standard renters insurance policy?

Back

Replacement of a broken air conditioning unit.

Front

How do insurance companies ensure profitability?

Back

By balancing premium collection with claim payouts and investments.

Front

Which of the following is NOT typically considered an 'out-of-pocket' cost?

Back

Your annual insurance premium.

Front

What is an insurance premium?

Back

The amount paid for an insurance policy, usually on a monthly or annual basis.

Front

What does 'coverage' refer to in insurance?

Back

The extent of protection provided by an insurance policy.

Front

What is the difference between term life insurance and whole life insurance?

Back

Term life insurance provides coverage for a specific period, while whole life insurance provides coverage for the insured's entire life.

Front

What is a copayment in health insurance?

Back

A fixed amount you pay for a covered healthcare service, usually at the time of service.

Front

What is the purpose of an insurance policy?

Back

To outline the terms, coverage, and conditions of the insurance agreement.