What is insurance and why do I need it?

What is insurance?

• A financial safety net

• A legal contract

• A form of charity

• A type of investment

What does insurance do when you suffer a covered loss?

• Pays you or a beneficiary

• Denies your claim

• Offers a loan

Answer explanation

What are the benefits of insurance?

Choose all that are correct.

• Financial assistance after a disaster

• Protection for your most important assets

• Peace of mind

Why is insurance important?

• To comply with the law

• All of the above

• To protect others

• To recover faster after a disaster

How does insurance work?

• By collecting premiums from policyholders

• All of the above

• By investing money

• By providing financial coverage for unexpected expenses

What is long-term disability insurance?

• Insurance that pays for disabilities for a short period of time

• Insurance that provides coverage for disabilities that last a long time

• Insurance that covers disabilities caused by natural disasters

Answer explanation

Who should consider getting life insurance?

• People with financial dependents (spouses or children).

• Teenagers.

Why is health insurance necessary?

• All of the above

• To cover the cost of medical care

• To avoid financial burden

• To protect against unexpected injuries

What does homeowner's insurance cover?

• All of the above

• Liability for injuries on the property

• Cost of living somewhere else while home is repaired

• Replacement of the structure and contents

Why is automobile insurance important?

• All of the above

• To cover the cost of repairs

• To protect against lawsuits

• To comply with the law