Personal Finance: Chapter 6 Review

Medicaid is a government-sponsored health insurance program for senior citizens.

• True
• False

Long-term care insurance will cover the expenses involved in extended care for a young person suffering from a debilitating injury.

• True
• False

With a health savings account (HSA), the balance not used by the end of the year is forfeited.

• True
• False

The beneficiary is the person covered by a life insurance policy.

• True
• False

Term life insurance provides a death benefit and builds a cash value.

• True
• False

A universal life insurance policy allows the policyholder to change the death benefit and premiums to fit changing needs throughout the insured's life.

• True
• False

An umbrella policy is so named because it provides liability coverage above that of your homeowner's and car insurance.

• True
• False

Renter's insurance also protects your personal property in your car or at work.

• True
• False

A stop-loss provision in your health insurance policy limits the amount your insurance will have to pay out in a give year.

• True
• False

Uninsured/Underinsured motorist insurance would cover pedestrians who are injured by an uninsured motorist.

• True
• False