Types of Insurance

Front

At least six months of expenses set aside to cover costs of unexpected expenses is called

Back

emergency savings

Front

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

Back

insurance

Front

True or False: Insurance is based on the concept of shared risk, or risk pooling.

Back

True

Front

The money paid to purchase an insurance policy is called:

Back

premium

Front

The out-of-pocket money paid by the policyholder BEFORE insurance company will cover the remaining costs attributed to the loss is called:

Back

deductible

Front

This requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid:

Back

co-insurance

Front

True or False: The higher the deductible the lower the premium

Back

True

Front

You fall off a ladder and visit the hospital emergency room. What type of insurance is relevant?

Back

Health Insurance

Front

You have a water leak in the home you own and need to replace the flooring and cabinets in the kitchen. What type of insurance would cover this?

Back

Homeowners Insurance (Liability or Property)

Front

You are unable to work for one year and need income to pay for living expenses. What type of insurance would you need? Options: Health Insurance, Disability Insurance, Long-Term Care Insurance, Renters Insurance (Liability or Property), Homeowners Insurance (Liability or Property)

Back

Disability Insurance