PF: Chapter 9 Lesson 1 Insurance Is Important

What is insurance?

• An agreement between you and an insurance company

• The cost you have to pay out of your pocket before the insurance company will make a payment

• A financial contract between the insurance company and the person being insured

• The amount of money the insurance company agrees to pay for an incident

What is a premium?

• The amount of money you pay for an insurance policy

• The amount of money the insurance company agrees to pay for an incident

• The cost you have to pay out of your pocket before the insurance company will make a payment

• The payments you make each time you go to the doctor or pick up a prescription

What is a deductible?

• The payments you make each time you go to the doctor or pick up a prescription

• The amount of money the insurance company agrees to pay for an incident

• The cost you have to pay out of your pocket before the insurance company will make a payment

• The amount of money you pay for an insurance policy

What is a copay?

• The payments you make each time you go to the doctor or pick up a prescription

• The cost you have to pay out of your pocket before the insurance company will make a payment

• The amount of money the insurance company agrees to pay for an incident

• The amount of money you pay for an insurance policy

What is an out-of-pocket maximum?

• The amount of money you pay for an insurance policy

• The most money you have to spend for covered services in a year

• The amount of money the insurance company agrees to pay for an incident

• The cost you have to pay out of your pocket before the insurance company will make a payment

What is the purpose of insurance?

• To transfer risk

• To pay for certain expenses or damages

• To provide real independence

• To cover repairs for the damage on your own

What is an insurance policy?

• An agreement between you and an insurance company

• A financial contract between the insurance company and the person being insured

• The amount of money the insurance company agrees to pay for an incident

• The cost you have to pay out of your pocket before the insurance company will make a payment

What is coverage?

• The amount of money the insurance company agrees to pay for an incident

• A financial contract between the insurance company and the person being insured

• An agreement between you and an insurance company

• The cost you have to pay out of your pocket before the insurance company will make a payment

When do you lose your coverage?

• When you pay later than the grace period allows

• When you file a claim for the damage

• When you reach your out-of-pocket maximum

• When you go to the doctor or pick up a prescription