STUDY GUIDE: Insurance

What is the purpose of insurance?

• To create unnecessary bureaucracy

• To encourage risky behavior

• To provide financial protection against unexpected events or losses.

• To make people spend more money

What are the different types of insurance?

• Food insurance, pet insurance, clothing insurance, technology insurance

• Accident insurance, liability insurance, theft insurance, fire insurance

• Car insurance, boat insurance, motorcycle insurance, bicycle insurance

• Life insurance, health insurance, auto insurance, home insurance, and travel insurance

What does insurance coverage refer to?

• Insurance coverage refers to the specific amount and type of protection provided by an insurance policy

• Insurance coverage refers to the temperature at which insurance policies are stored

• Insurance coverage refers to the color of the insurance card

• Insurance coverage refers to the number of employees at the insurance company

How are insurance premiums determined?

• Insurance premiums are determined based on factors such as the insured person's age, health, occupation, and the type of coverage they require.

• Insurance premiums are determined based on the number of pets the insured person owns

• Insurance premiums are determined based on the weather in the insured person's location

• Insurance premiums are determined based on the insured person's favorite color

What is an insurance deductible?

• The amount of money the insurance company owes the insured person

• The total cost of the insurance policy

• The maximum amount the insured person can claim from the insurance company

• The amount of money that the insured person must pay before the insurance company starts to cover the remaining costs.

What are some common insurance basics that everyone should know?

• Understanding coverage, premiums, deductibles, and policy limits

• How to file a claim

• The different types of insurance for pets

• The history of insurance companies

What is the difference between term life insurance and whole life insurance?

• Term life insurance is more expensive than whole life insurance

• Term life insurance can be purchased at any age, while whole life insurance is only available for young adults

• Term life insurance provides coverage for a specific period of time, while whole life insurance provides coverage for the entire life of the insured.

• Term life insurance provides coverage for a specific illness, while whole life insurance provides coverage for all illnesses

How does health insurance coverage work?

• Insurance companies pay individuals for their medical expenses

• Health insurance is free for everyone

• Health insurance coverage is only for cosmetic procedures

• Individuals or employers pay a premium to an insurance company in exchange for coverage of medical expenses.

What factors can affect your car insurance premiums?

• Favorite color, favorite food, favorite movie

• Number of pets, shoe size, hair color

• Height, weight, blood type

• Age, driving record, location, type of car, and coverage options

Why is it important to review your insurance policies regularly?

• To ensure that your coverage is up to date and meets your current needs.

• To check if your policy covers alien invasions

• To make sure your insurance agent still likes you

• To see if your insurance company has changed its name