WISE Vocab Part 2

Time Value of Money

• A dollar today is worth more than a dollar tomorrow

• A dollar tomorrow is worth more than a dollar today

• Money gains value as time goes on

• Time and money are unrelated

Deductible

• The amount an insured person must pay before the insurance pays anything on the claim

• The cost of insurance

• Fee for joining an insurance policy

• The amount an insurance company will cover when a claim is made

Beneficiary

• Person entitled to the benefits or proceeds of a life insurance policy or will

• Someone who benefits from the hiring of a stock broker or wealth advisor

• Person entitled to financial compensation upon making a car insurance claim

• Another name for a co-signer on a loan

Cash Value

• The amount of money a whole life insurance policyholder would receive if the policy were surrendered before death or maturity

• The value of someone's car to be used to determine their car insurance policy

• The amount of money someone leaves to beneficiaries in a will

• The balance left over on a typical installment loan or mortgage

Claim

• Formal request for payment, sent to an insurance company, after a loss

• Agreement signed between and individual and an insurance company

• The types of losses and damages your insurance provider will actually cover.

Death Benefit

• The amount of money paid to a beneficiary under a life insurance policy

• Amount left a an individual in a will

• Amount paid out if insurance can only cover a portion of a claim

Disability Insurance

• Type of Insurance paid to an individual if they are injured and unable to work for a length of time.

• Type of insurance that covers the medical bills related to serious injuries

• Type of insurance that covers individuals who have trouble buying homes

coverage that provides protection for your residence and its associated financial risks

• Homeowners' Insurance

• Renters' Insurance

• Health Insurance

• Comprehensive Insurance

The possibility of financial loss or presence of danger

• Risk

• Loss

• Insurance

• Premium

A permanent life insurance policy where the premium remains constant and builds cash value invested by the insurer. Usually more expensive.

• Whole Life Insurance

• Term Life Insurance

• Cash Value Insurance

• Partial Life Insurance