PF: Buying Insurance

How will buying auto insurance help you?

• It will help you exchange your damaged vehicle for an undamaged one.

• It will help you buy a new car on loan.

• It will compensate you if your car is stolen or gets damaged.

When would power of attorney be needed?

• when someone dies unexpectedly

• when someone dies but there is no will and the estate must be managed

• when a person is unable to manage their affairs

• when a living will is not in place and beneficiaries must be named

Which would you need in the event of professional mishaps?

• will

• power of attorney

• trusts

• insurance

What are the four major components of a will?

• purpose, considerations, executor, codicil

• principle, conditions, beneficiary, notary

• statement, clauses, executor, amendments

• proposal, directives, power of attorney, trusts

What is a living will?

• legal document that names executors and provides codicils

• legal document that states end of life medical care

• legal document that begins with "this is my last will and testament"

• legal document that gives directives on how your things should be given to beneficiaries when you die

Select the correct answer.

What are prenuptial contracts?

Paul and Erika are getting married, but Jared has children from a previous marriage. They decide to sign a ____________ that will provide for children from a previous relationship. Paul also makes a ____________ to his will that gives Erika his home.

• amendment, power of attorney

• prenuptial agreement, codicil

• non disclosure form, living will

• will, trust

Select the correct answer.

Consider the importance of risk management and estate planning.

Estate planning is planning the distribution of your estate after your death, which includes _____________. It names a/an _________ who will receive your estate.

• furniture, executor

• personal possessions, guardian

• car, power of attorney

• everything you own, beneficiary

Select all the answers that apply.

Single peril includes

• losses from one event

• high insurance cost

• homeowner picks catastrophic

  events

• comprehensive general property

  insurance

Select all the answers that apply.

Broad form includes

• losses from one event

• high insurance cost

• homeowner picks catastrophic

  events

• comprehensive general property

  insurance

Select all the answers that apply.

Liability coverage includes

• pays damages to your car

• pays 0% damages to the

  other car

• pays medical bills

• pays damages to the other

  car