Unit 9 Review

What is the purpose of insurance?

• to invest

• financial education

• to transfer risk

• build a portfolio

Which of the following could affect your health insurance coverage?

• your history of auto accidents

• the size of your home

• the size of your family

• your means of income

Which is the most important insurance to have as a teenager?

• life insurance

• health insurance

• disability insurance

• homeowner's insurance

Who of the following should have life insurance the most?

• single person

• retired widow

• breadwinner of a family with two children

• young adult with roommates

Why is insurance important to have financially?

• to increase your credit score

• to protect your income and assets

• to invest in the stock market

• to use as a retirement plan

Which type of insurance is mandatory in most states?

• life insurance

• disability insurance

• auto insurance

• renter's insurance

Under your health insurance plan, you have a $2,000 deductible. You are hospitalized for 7 nights, with a $50 copay for each night. If your bill comes to $12,000, how much do you have to pay?

• $2350

• $2000

• $350

• $12,000

What is the term for the highest amount of money you would have to pay in one year under an insurance policy?

• premium

• deductible

• out-of-pocket limit

• coverage

Where do the majority of Americans get their health insurance?

• through the private market

• through their employer

• through Medicaid

• through Medicare

Which of the following is provided for Americans 65 and older and paid for through Social Security payroll taxes?

• Medicaid

• Medicare

• private health insurance

• employer-sponsored coverage