Unit 7: Financial Planning Review

If your health plan's ____________ is $1,500, you'll pay 100% of eligible health care expenses until the bills total $1,500.

• deductible

• PPO

• policy

• co-pay

You have to pay this each month to have insurance even if you don't use the services provided by that insurance. This allows you to keep the policy in case you ever do need the services.

• co-pay

• premium

• deductible

• co-insurance

This explains to you what your insurance is going to cover based on your selections.

• premium

• policy

• deductible

• co-insurance

Why is the job of an actuary important to insurance companies?

• They determine what premiums should cost to ensure the insurance companies make money.

• They connect insurance agencies with uninsured citizens to bring in more clients.

• They communicate the results of a claim with the client so clients know the coverage they are receiving.

• They try and cut the costs of insurance prices for clients to be more fair.

What is an "out of pocket maximum"?

• The most you have to pay for covered services in a plan year

• The same thing as your deductible

• The most you'll have to pay in co-pays in a plan year

• The most amount of money your insurance is willing to pay for services in a plan year

1. Percentage of covered medical expenses you are responsible for paying after your deductible is met.

• Co-Insurance

• Policy

• Deductible

• Co-Pay

Riley chosen a savings account that will yield a 3% rate of return. She used _____________ to determine that it will take her 24 years to double her money.

• Short Term Losses

• Historical Rate of Return

• Rule of 72

• Theory of 73

Interest rates for traditional savings accounts usually out pace inflation (meaning inflation is usually growing at a SLOWER rate so traditional savings accounts will give you a good rate of return on your money)

• True

• False

Which of the following is NOT true about an index fund?

• They closely match the stocks within a provided index (like the S&P 500)

• They are not actively managed

• Based on the theory that in the long term, the market will outperform any single investment

• They are made up of 2-3 stocks managed by a robo-advisor

Your insurance company will pay for most of the cost of a hospital visit before you have met the deductible.

• True

• False