(13.2 & 13.3) Insurance

Understanding insurance terms helps you know what you're paying for and what's covered.

What does the term premium in insurance mean?

• the money you get when you make a claim

• the maximum amount your insurance will cover

• the money you pay regularly to keep your insurance active

• the best type of insurance you can have

Understanding what terms like deductible, co-pay, and policy limit mean can help you understand what you're paying for and what you're covered for.

What is a co-pay?

• a fixed amount the insured must pay each time they receive a service that is covered by their insurance policy

• the amount the insured pays to the insurance company in exchange for coverage

• the amount the insured must pay out of pocket before the insurance company will pay for a claim

• when you pay for insurance with another person

When you purchase an insurance policy, it will list an amount you must pay out of pocket before the insurance company will pay for a claim.

What is this amount called?

• a policy limit

• a co-pay

• a deductible

When you purchase an insurance policy, there is a term that refers to the maximum amount the insurance company will pay for a claim.

What is this term called?

• a deductible

• a policy limit

• a premium

• a co-pay

Many people get health insurance through a government sponsored program such as Medicaid or Medicare.

Who typically pays for the cost of a government sponsored health plan?

• a private insurance company

• the government

• the individual receiving the health insurance

• the employer

Health insurance is important to have, as it helps us pay for medical care. There are different types of health insurance, and each type of health insurance has its own costs and benefits.

Which type of health insurance plan typically has the lowest monthly premiums?

• individual health plans

• government-provided health plans

• employer-provided health plans

Individual health plans are insurance policies that people can buy for themselves and their families, instead of getting insurance through their job or the government.

Which of the following is a potential benefit of an individual health plan?

• customizable coverage options

• automatically covers all family members

• guaranteed coverage through your employer

• guaranteed coverage through your employer

Car insurance is important for many reasons, and it's a good idea to understand why you might need it.

• you are required by your state law to have insurance

• you have to have car insurance if you want to park on public property

• to help pay for repairs if your car breaks down

Car insurance can help protect you, your car, and others in case of an accident. There are different types of coverages, and it's important to understand what each one does.

Which coverage helps pay for damages you cause to someone else's car or property?

• liability coverage

• uninsured motorist coverage

• comprehensive coverage

• collision coverage

You have been driving for a few years now. Last week, you got your car insurance renewal notice, and your car insurance premium has gone down by $100.

What could be a reason for this change in cost?

• you bought a sports car

• you moved to a town that had several hurricanes

• you have a perfect driving record

• you got a speeding ticket a month ago