Dave Ramsey Chapter 9 Insurance

Insurance is a necessary part of a financial plan

• True

• False

It is important to remember that insurance is a financial product (Buyer Beware)

• True

• False

Which of the following would not be a huge financial risk?

• Your identity gets stolen

• Car accident

• Medical Emergency

• You lose your cell phone

The time between a disabling event and the beginning of payments for your disability

• Elimination period

• Out of pocket

• Stop Gap

• Deductible

Life insurance policy for a specific period of time

• Level

• Term

• Whole Life

• Universal

What is the purpose of insurance?

• Provide an investing opportunity

• Develop a savings plan

• Transfer financial risk

• All of the above

Which is not a recommended way of lowering your car insurance premiums?

• Drop your car insurance

• Get good grades

• Shop around to different companies

• Increase your deductible

Which type of insurance is not recommended for young single people?

• Health Insurance

• Identity Theft Protection

• Auto Insurance

• Life Insurance

Which is not a recommended way to save on health insurance premiums?

• Increase your deductible

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

• See if a Health Savings Account will work for you.

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

Which of the following is true?

• Pet insurance is a good idea

• Any kind of duplicate insurance coverage is a bad idea

• Mortgage life insurance is necessary if you are a home owner

• You can never be too safe- there is no bad insurance