W!se Review - Insurance

An insurance premium is paid by...

• the policyholder.

• the insurance company.

• the government.

• the beneficiary.

Why is it important to have insurance?

• It helps people save money on their taxes.

• It's important to have insurance so people can protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property.

• It allows individuals to invest in high-risk ventures without concern.

• It guarantees that all medical expenses will be covered regardless of the situation.

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

• Insurance

• Savings Account

• Stocks

• Real Estate

An insurance deductible is...

• the amount you owe before insurance will cover the rest of the bill.

• the total amount of your insurance premium for the year.

• the maximum amount your insurance will pay for a claim.

• the percentage of the claim you are responsible for after coverage.

Why should you purchase insurance?

• To prevent financial burden in the case of an accident, theft, or another event.

• To increase your savings and investments.

• To avoid paying taxes on your income.

• To ensure you can buy luxury items without worry.

Buying a home security system is an example of protecting your home against________.

• risk

• opportunity

• uncertainty

• liability

What is a consequence of not having health insurance?

• You must pay all costs for health care and medical emergencies.

• You receive free medical care from hospitals.

• You can choose any doctor without restrictions.

• Your medical expenses are covered by the government.

If you get into a car accident, your _______________ may increase because you will be considered riskier for insurance companies to cover.

• insurance premium

• deductible

• coverage limit

• policy excess

How is having a security system for your home a risk management strategy?

• It increases the value of your home.

• The security system will alert authorities and deter criminals, protecting your valuables and property.

• It provides a false sense of security.

• It is a legal requirement in many areas.

A deductible is paid by...

• the policyholder.

• the insurance company.

• the beneficiary.

• the agent.