Personal Finance, Ch. 9, Sec. 1 (1.1)

Insurance is a necessary part of a healthy financial plan.

• True

• False

The purpose of insurance is to transfer risk.

• True

• False

If you have a full emergency fund, the best way to keep your premiums down with insurance is to raise your:

• Right hand

• Deductible

• Salary

• Roof

What you have to pay out of pocket before the insurance company kicks in any money.

• Deposit

• Deductible

• Premium

• Umbrella

This covers property damage and medical bills if you're at fault in a car wreck or if someone gets hurt on your property.

• Medical insurance

• Deductible

• Collision

• Liability

The insurance that pays to fix your own car.

• Liability

• Collision

• Damage insurance

• Premium

You should consider dropping your collision insurance on older cars.

• True

• False

You should get long-term care insurance as soon as you graduate from high school.

• True

• False

Get this type of insurance when you have dependents who rely on your income.

• Homeowner's

• Disability

• Life

• Health

Insurance will protect your wealth during life's major catastrophes.

• True

• False