Personal Finance - Insurance

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses

• Premium

• Policy

• Insurance

• Risk

• Deductible

A contract between the insurance company and the insured

that states the exact terms of the policy including what risks are covered and how much will be paid for any losses

• Premium

• Policy

• Insurance

• Risk

• Deductible

What is an insurance premium?

• a list of procedures covered by your insurance carrier

• the amount you pay out-of-pocket for a procedure or service

• monthly payment to your insurer even though you may not use services

• an added cost you pay in order to receive higher-quality services

This term refers to an arrangement where you are responsible for paying a percentage of covered medical expenses after your deductible is met?

• Premium

• Co-insurance

• Limit

• Out-of-network fees

Which of these is NOT an "out-of-pocket" expense?

• Monthly

• A copay of $35

• a $1500 deductible

• any excess bills from an accident

What is risk-pooling?

Insurance companies make money by...

• Not paying claims to policyholders

• Collecting money from the government

• collecting more in premiums than they pay out each year

• Not advertising

What is the difference between comprehensive coverage and collision coverage?

Which insurance coverage option would be the lowest priority for a single person person who graduated college 1-2 years ago?

• Health I

• Life Insurance

• Auto Insurance

• Renter's or Homeowner's insurance

What is a deductible?