Finance Chapter 9 Test

Disability insurance isn't intended to make you _____ but to ______ when you need it

• A millionare, Keep you poor

• Hungry, Keep food on your table

• Poor, Make you rich

• Rich, Pay your bills

Who really needs life insurance

• Everyone

• People who are married, have dependents, or both

• No one

How does a Health Savings Account work?

• allows you to put money away and withdraw it tax free, as long as you use it for qualified medical expenses

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Explain the differences between a premium and a deductible

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• Premium-The premium is the amount paid to an insurance agency for a health insurance policy. The premium is often paid on a monthly basis.

• Deductible- The deductible is the amount that must be paid by the patient before the insurance agency will begin to make payments.

In return for paying the insurance company a fee, they will...

• Pay for certain expenses or damages

• Give you a paycheck every month

• Manage your money for you

• Create a monthly budget

Explain why it's not always a good idea to have supplemental insurance to cover things like eye exams, dental work, or cancer

• it may not cover all the expenses you expected it to, it may impose waiting periods before payments start, or it may contain limits based on how much you paid and for how long. It is important to understand that supplemental insurance is not regulated by the Affordable Care Act.

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What is a deductible?

• The amount of money you pay for your insurance policy every month

• When you report an incident and ask to be compensated for the cost

• The amount you have to pay before the insurance company will make a payment

• The amount of money the insurance company agrees to pay

What type of insurance pays for the treatment of injuries and losses to the driver and passengers

• Collision Insurance

• Personal Injury Protection

• Uninsured motorist protection

• Liability Insurance

The purpose of life insurance is to replace your ___ when you die

• Legacy

• Income

• Life

___ will cover you if someone steals your personal information

• Short-term disability

• Supplemental Insurance

• Identity theft protection