Chapt 9 Personal Finance

Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?

• Youe lose your cell phone

• A medical emergency

• Your identity gets stolen

• A car accident

The time between the disabling event and the beginning of payments in your disability coverage is called:

• Deductible

• Out of pocket

• Elimination period

• Stop Gap

Life insurance policy for a specific period of time is called:

• Universal

• Level

• Term

• Whole Life

The purpose of insurance is to:

• Develop a savings plan

• Transfer financial risk

• Provide an investment opportunity

• All of the above

Which of the following is NOT a recommended way of lowering your car insurance premiums?

• Get good grades and take a driver education class

• Drop your auto insurance altogether

• Increase your deductable

• Shop around

Which of the following types of insurance is NOT recommended for a young single adult?

• Auto Insurance

• Identity theft protection

• Health Insurance

• Life Insurance

Which of the following is NOT a recommended way to save on your health insurance premiums?

• Increase the deductible

• See if a Health Savings Account would make sense for your situation

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

• Increase your stop-loss of your maximum out-of-pocket expenses

A person becomes self-insured when:

• Their kids are grown, they have no debt, and they have fully funded retirement

• They have no debt

• Everyone should have term insurance regardless of age or financial well-being

• They own their own business

Which of the following is true?

• Any kind of duplicate insurance coverage is a bad idea

• Pet insurance is a good idea since pet emergencies can be very expensive

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

• Mortgage life insurance is necessary if you are a homeowner

Which of the following statements about long-term care insurance is false?

• You should not buy long-term care insurance until age of 30

• At least 69% of people over the age of 65 will require long term care at some point

• Long-term care insurance is not the same as disability or short-term medical care

• A good long-term care policy will include in-home care