Finance Unbox-ED ($) - Grade 6-8 - Session 016 - Quiz 1

Select all the statements that are true

• Insurance is a type of protection that a company offers you to protect you from losses
• Insurance companies charge a small amount of money each year called premium
• Insurance companies protect us for free as these are essential services
• When we ask an insurance company to pay us for our loss it is called a claim

Select all the statements that are true about health insurance

• Covers us for our medical bills in case we are not well and require treatment
• Policy amount is the minimum amount the health insurance company will pay you
• Higher the policy amount higher is the premium for health insurance
• All of the above

Health insurance covers all medical expenses without any exclusions

• True
• False

Health insurance premiums go up over time as we become older since the risk of hospitalization tends to be higher as we become older

• True
• False

Select all the statements that are true about motor insurance

• Covers us for our cost of repair in case of an accident
• Covers us for buying a new music system that we like for the car
• Covers us for the insured value of the car in case of theft
• Covers us for for any third party claims

If you drive carefully and do not make a claim, insurance companies offer you a discount on premium the next year as they then see you as a low risk customer

• True
• False

Select all the statements that are true about property insurance

• Covers you for any loss to your property due to things such as fire and theft
• Premiums paid are linked to value of the property so higher the value higher is the premium
• Premiums are higher if property has higher risk of loss due to weather or fire
• All of the above

Select all the statements that are true about life insurance

• Cover is taken by the earning member/s of the family to secure the family’s future
• Higher the policy amount higher will be the premium
• Premium amount is fixed upfront and does not change over time
• All of the above

Life insurance premium for the same policy amount is higher if your age is lower

• True
• False

Insurance is important as it allows you to get protection against a big expense by paying a small premium every year

• True
• False