Insurance Basics

What is the main purpose of insurance?

• to follow the law

• to get weathly

• For investment purposes

• To reduce risk

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

• coverage

• dues

• deductible

• policy

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

What is an insurance premium?

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

• 1. 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

Tags

CCSS.7.RP.A.3

4. Insurance companies make money by...

• 1. Refusing to pay out claims to policyholders

• 1. Collecting money from the government

• Collecting more in premiums than they need to pay out each year

• 1. Keeping costs low with minimal advertising

6. Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $800 TV set. How much would your insurance company pay?

• 1. $0

• 1. $200

• 1. $800

• 1. $1,000

  2. rerre

Tags

CCSS.6.RP.A.3B

1. John has a health insurance policy with a deductible of $500. He falls ill and the total medical bill comes to $700. How much will John need to pay out-of-pocket?

• 1. $0

• 1. $200

• 1. $500

• 1. $700

Tags

CCSS.6.EE.B.6

The amount of money that the insured person must pay before their insurance policy starts paying for covered expenses.

• Premium

• Copay

• Deductible

• Coinsurance

Tags

CCSS.RI.11-12.5

CCSS.RI.9-10.5

CCSS.RI.11-12.3

CCSS.RI.8.3

CCSS.RI.9-10.3

Karen is renting her first apartment. What type of insurance should she purchase to protect her personal belongings?

• Homeowner's Insurance

• Life Insurance

• Renter's Insurance

• Auto Insurance

Why is insurance important?

• so you can engage in risk and not worry

• so you can not worry about paying any money when accidents happen

• so you can protect yourself from losing alot of money in the event something happens to you or your property

• none of these

Risk involves:

• a chance of loss or injury

• unpredictability

• uncertainty

• all of these are involved with risk