NCVPS Blended Financial Management 6.1 Practice

What is insurance?

• A type of savings account

• A financial agreement to protect against unexpected events

• A loan from a bank

Why do we need insurance?

• To avoid paying taxes

• To protect against financial consequences of unexpected events

• To save money for retirement

Which of the following is a type of insurance?

• Health

• Travel

• Grocery

Which of the items below could be paid by auto insurance?

• Damage to your home

• Medical bills for car accident injuries

• Loss of personal possessions in a rented apartment

Which type of auto insurance is required by law?

• Comprehensive

• Collision

• Liability

Home insurance is purchased to protect...

• Only the building structure

• Only the contents inside the home

• Both the building structure and its contents

Who is the beneficiary in a life insurance policy?

• The insurance company

• The person who receives the money when the insured dies

• The government

What does renter's insurance cover?

• The building structure

• The renter's personal possessions

• The landlord's property

Which type of insurance pays an employee when they are out of work for more than a month?

• Health insurance

• Life insurance

• Disability insurance

Health insurance is often provided to an employee by their ________

• Employer

• School

• Doctor