Unit Seven: Money and Career Management (3) Review

What is an insurance premium?

• Your monthly payment to your insurer, regardless of whether you use any services

• A list of the procedures covered by your insurance carrier

• An added cost you pay in order to receive higher-quality services

• The amount you pay out-of-pocket for a specific procedure or service

• $0

• $100

• $1,200

• $1100

Why would someone choose to get long term disability insurance even if they already have health insurance?

• To cover lost income if they are unable to work due to a disability

• To pay for medical bills not covered by health insurance

• To receive better medical care

• To reduce monthly health insurance premiums

• $1,000

• $6,200

• $0

• $30,000

Social Security generally provides (retirement) insurance for which of the following groups of people?

• The elderly or disabled

• Employees who have a government position

• Anyone with a job

• Children and students

What is a potential consequence of not having mandatory insurance types like auto, health, life, disability, and renters/home insurance?

• You will save money

• You will have to pay penalties

• You will be healthier

• You will have more coverage

What is the benefit of starting to pay for insurance early?

• You can stop paying altogether for coverage sooner

• You will never need to use it

• It is cheaper than paying later

• It is not beneficial

Fill in the blank: The sooner you start paying for insurance, the sooner you will reach your maximum ________ requirement.

• Lifetime

• Monthly

• Annual

• Weekly

While parked on the street overnight, Sam's car is hit by a falling branch from the tree he parked beside. The hood is dented and the windshield is severely cracked. Which type of auto insurance coverage will help cover the cost to get the hood and windshield replaced/fixed?

• A) Collision

• B) Liability

• C) Comprehensive

• D) Uninsured motorist coverage.

Lucille just graduated college and is on a very tight budget, so she chooses a health insurance plan with a low monthly premium and a high deductible. She figures that if she gets seriously ill or injured, she'll just change the plan before she heads to the doctor or hospital. Why won't her plan work?

• A) You cannot change your plan instantly at any time, and she cannot predict when an emergency will strike

• B) Changing your health insurance plan that quickly can only be done by clients who are 35 or older

• C) This plan will only work if she goes in-network, and most hospitals are out-of-network

• D) People with high deductible plans usually cannot go to the hospital -- they have to go to the emergency room instead.