Understanding Insurance Concepts

The total cost of buying insurance, usually per year

• Premium

• coverage

• deductible

• policy

What is the main purpose of insurance?

• to follow the law

• to get weathly

• For investment purposes

• To reduce risk

This type of insurance should pay if you severely burn your finger on a toaster and need to go to the hospital

• Life

• Health

• Product

• Homeowners

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

• Product

• Health

• Homeowners

• Life

This is what you have to pay before the insurance company will pay anything

• coverage

• dues

• deductible

• policy

This is the minimum required by law, only repairs the vehicle you hit, not your own

• Liability

• Collision

• Comprehensive

• Deductible

This covers the damage to your car and the other persons, regardless of who is at fault

• Comprehensive

• Liability

• Homeowners

• Health

What factors impact the cost of your auto insurance premium?

• Deductible amount

• The vehicle you are insuring

• Your credit score

• Your income

Provides payments for both liability and property insurance on a vehicle

• disability insurance
• automobile insurance
• coverage
• deductible

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