Everfi- Financial Literacy Lesson 7 Insurance

How much do you think you know about property and health insurance?

• * nonthing

• ** Very little you would have to look up info

• *** most of it you could purchase insurance with some confidence

• **** Pretty good understanding

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

• insurance policies

• warranties

• risk management strategies

• deductibles.

What is a risk management strategy you could use to protect your home? a. b. c.

• None of these

• Buying a home security system

• Installing front porch cameras to monitor your home

• Purchasing reflective clothing to wear while biking at night

How is having a security system for your home a risk management strategy? The system will...

• let you know when visitors knock on your door.

• will give you peace of mind

• alert authorities and deter criminals, protecting your valuables and property

• allow you to keep your doors unlocked

Why is it important to have insurance?

• so people can protect themselves from loss

• So individuals can defend against the possibility of financial loss due to unpredictable events

• So people can engage in risky behavior without financial consequences

• to protect you from losing a lot of money in that something that happens to them or their property

What can insurance protect you from?

• being sewed in some cases

• Theft

• Contract fees

• Financial loss

Insurance premiums are paid monthly and deductibles are paid when an event is filed.

When filing an insurance claim, the policyholder must pay a ________________, which is the amount you owe before insurance will cover the rest of the bill.

• deductible

• premium

• contract fee

• commission

An insurance deductible is...

• the monthly premium on an insurance policy

• commission paid to the agency for the purchase of a policy

• the amount you owe before insurance will cover the rest of the bill

• the contract fee applied to the monthly premium.

A deductible is paid by...

• the insurance company

• the policyholder

• the claims adjuster

• the government

An insurance premium is...

• the amount of money you pay for an insurance policy

• the amount of money you pay for an insurance policy

• a commission paid to the agency for the purchase of a policy

• an extra fee you need to pay your insurance for filing a claim out of network