Insurance Basics

The amount paid for insurance is the

• closing cost
• premium
• deductible
• assessed value

The out of pocket cost to the insured when a loss occurs is called...

• Premium

• Deductible

The type of insurance that provides protection against financial loss from medical bills is called

• health insurance
• coinsurance
• life insurance
• premium

Insurance that protects your family against financial loss due to your death is

• coinsurance
• disability insurance
• life insurance
• comprehensive insurance

This term pays for protection against loss of life, property, and finances.

• collision
• premium
• insurance
• deductible

This type of insurance should pay for damages if a tree that goes through your roof.

• Product

• Health

• Homeowners

• Life

What role does insurance play in financial planning?

• It guarantees that income and assets are protected

• It helps build and maintain one's credit score

• It helps cover day-to-day expenses

• It grows in value and appreciates over time

Your health insurance copay is

• Amount paid out of pocket before your insurance coverage

• Paid by the insurer

• Applied on an annual basis

• A fixed amount of money you pay each time you use your plan

True or False: Insurance is based on the concept of shared risk, or risk pooling.

• True

• False

A formal request to an insurance company asking for a payment when the policyholder has an acciden, illness or injury

• emergency savings
• coverage
• claim
• employee benefits