EPF-Module 6 Insurance Review

Insurance that covers damage to your car from an accident is called __________.

• collision insurance

• liability insurance

• comprehensive insurance

• uninsured motorist coverage

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

• risk management strategies

• insurance policies

• deductibles

• warranties

Which of the following types of insurance covers the insured if they are unable to work for an extended period of time due to an injury?

• long-term disability insurance

• health insurance

• life insurance

Individuals who purchase a house with a mortgage might be required to purchase which of the following?

• Health insurance

• Disability insurance

• Life insurance

• Homeowners' insurance

_____________ coverage does not cover the cost of the insured’s car repairs.

• Collision

• Comprehensive

• Liability

The __________ for a health insurance policy must be paid whether or not the insured has any healthcare costs.

• deductible

• premium

• co-pay

Life insurance that offers both death benefit protection and a cash value component with no specified period of coverage is called ______________life insurance.

• permanent

• whole term

If an insurance policy covers individual losses up to $20,000 and has a deductible of $500, the insured will be paid how much in the event of a covered loss of $6,000?

• $5,500

• $14,000

• $6,000

• $500

Which of the following individuals will purchase life insurance primarily for the death benefit?

• Young people with children

• Wealthy seniors planning their estate

• Older workers planning for their retirement

• Middle aged workers focused on capital accumulation

• All of these

Comprehensive car insurance covers which of the following?

• Property damage if you run into something

• Damage to your car from collision with another driver

• Damage to your car from hail or lightening

• All of these