Cash Course Video: Insurance Basics

In 1666, England experienced The Great Fire of London, which led to the first ________ created by Nicholas Barbin to cover fire risks.

Many people pay ________ to the insurance company, which pools this money to pay for policyholders' losses.

For example, car repairs from an accident can cost thousands. Insurance helps to cover some of the ________ loss.

Policies with higher premiums generally have ________ deductibles, while policies with lower premiums have higher deductibles.

Choosing a policy depends on ________ and lifestyle. For example, those who rarely go to the doctor might choose a low premium and high deductible plan.

People who file many claims or have a high ________ may pay higher premiums or have trouble finding affordable insurance.

Typical types of insurance include ________, auto, and renters.

Who created the first insurance company after the Great Fire of London?

• John Smith

• Nicholas Barbin

• Robert Graham

• William Russell

What is a claim?

• Request for the insurance company to cover a loss

• The monthly cost of the policy

• The total insurance coverage limit

• The type of insurance purchased

What happens if you choose a policy with a high premium?

• You will have a lower deductible

• You will have a higher deductible

• You will have no deductible

• You will pay more in claims