Everfi- Financial Literacy Lesson 7

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

• insurance policies.

• warranties

• risk management strategies.

• deductibles.

Which is not an example of a risk management strategy?

• Wearing reflective clothing while biking at night

• Buying a new car

• Wearing a helmet while biking

• Wearing a seat belt while driving

An example of a risk management strategy is...

• wearing a seat belt while driving.

• carpooling.

• wearing a helmet when biking.

• A and C

What should you NOT use a loan to purchase?

• A house

• Tuition for higher education

• Airline tickets to your dream vacation

• A car

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

• The security system will allow you to keep your doors unlocked.

• The security system will alert authorities and deter criminals, protecting your valuables and property.

• The security system will give you peace of mind.

• The security system will let you know when visitors knock on your door.

Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...

• risk management.

• liability.

• warranty.

• Insurance.

How can insurance protect you from financial loss?

• Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.

• Insurance can offer easy monthly payment options for premiums.

• Insurance can offer low co-insurance policies.

• Insurance can offer warranties on household items.

Why should you purchase insurance?

• To prevent financial burden in the case of an accident, theft, or another event

• To get a warranty on a household item

• To purchase monthly premiums

• To avoid committing a crime

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

• a 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.