Personal Finance Chapter 9- Insurance

Renter’s insurance is not necessary if you don’t have a lot of expensive things.

• True

• False

Disability insurance offered through your employer is usually the most expensive coverage option.

• True

• False

The amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance

• Premium

• Co-pay

Following the Five Foundations will help you to, one day, become self-insured.

• True

• False

Which of the following statements about long-term care insurance is false?

• You should not buy long-term care insurance until age 30.

• At least 69% of people over the age of 65 will require long -term care at some point.

• Long-term care insurance is not the same as disability or short -term medical care.

• A good long-term care policy will include in-home care.

You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:

• Comprehensive

• Collision

• Liability

• Uninsured motorist protection

Which of the following statements about disability insurance is false?

• A longer elimination period will lower your premium cost

• Disability insurance is not necessary if you have a good health insurance policy

• Your coverage should be for 65% of your income.

• After college, short-term disability should be covered by your emergency fund of three to six monthsʹ worth of expenses, staying out of debt, and having a money plan.

Specific amount of money that you pay when insurance only covers a portion of costs

• Fee

• Out-of-pocket expense

Which of the following is not a recommended way to save on your health insurance premium?

• Increase your deductible

• Increase your stop-loss or your maximum out-of-pocket expense

• See if a Health Savings Account would make sense for your situation

• If you are young and healthy, you do not need health insurance

Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure

• Appraisal

• Claim