Unit 7: Financial Planning Review

Front

If your health plan's ____________ is $1,500, you'll pay 100% of eligible health care expenses until the bills total $1,500.

Back

deductible

Front

You have to pay this each month to have insurance even if you don't use the services provided by that insurance. This allows you to keep the policy in case you ever do need the services.

Back

premium

Front

This explains to you what your insurance is going to cover based on your selections.

Back

policy

Front

Why is the job of an actuary important to insurance companies?

Back

They determine what premiums should cost to ensure the insurance companies make money.

Front

What is an "out of pocket maximum"?

Back

The most you have to pay for covered services in a plan year

Front

Percentage of covered medical expenses you are responsible for paying after your deductible is met.

Back

Co-Insurance

Front

Riley chosen a savings account that will yield a 3% rate of return. She used _____________ to determine that it will take her 24 years to double her money.

Back

Rule of 72

Front

Interest rates for traditional savings accounts usually out pace inflation (meaning inflation is usually growing at a SLOWER rate so traditional savings accounts will give you a good rate of return on your money)

Back

False

Front

Which of the following is NOT true about an index fund?
Options:
They closely match the stocks within a provided index (like the S&P 500)
They are not actively managed
Based on the theory that in the long term, the market will outperform any single investment
They are made up of 2-3 stocks managed by a robo-advisor

Back

They are made up of 2-3 stocks managed by a robo-advisor

Front

Your insurance company will pay for most of the cost of a hospital visit before you have met the deductible.

Back

False