Navigating Insurance Terminology

This video tutorial explains key insurance terms such as premium, deductible, policy limit, and copay. It provides examples of how deductibles work in health and car insurance, discusses the concept of policy limits in liability insurance, and explains the role of copays in health and dental insurance. The tutorial aims to enhance understanding of these terms, especially for those new to insurance.

What is an insurance premium?

• The amount paid when an accident occurs

• The monthly or annual cost to maintain the insurance policy

• A fee paid only once at the beginning of the insurance term

• The amount the insurance company pays in case of a claim

What does a deductible in an insurance policy refer to?

• The maximum amount the insurance will pay

• The initial amount paid by the policyholder before the insurance covers the rest

• The total cost of the insurance premium

• A fixed fee paid for routine check-ups

If you have a $5000 deductible, how much would you pay out-of-pocket for a $2000 medical procedure?

• $5000

• $0

• $2000

• $3000

Tags

CCSS.6.RP.A.3B

If your car insurance has a $1000 deductible, how much would you pay out-of-pocket for a $3000 repair?

• $0

• $2000

• $3000

• $1000

Tags

CCSS.6.RP.A.3B

How does a higher deductible affect your insurance premium?

• It eliminates the premium

• It has no effect on the premium

• It decreases the premium

• It increases the premium

What does a higher deductible imply from the insurance company's perspective?

• Higher risk of frequent claims

• Lower risk of minor claims

• No change in risk assessment

• Higher premiums for the insured

What is a policy limit in insurance terms?

• The minimum amount you must pay as a premium

• The deductible amount

• The maximum amount covered in routine check-ups

• The maximum amount the insurance will pay in a claim

What happens if a court orders a payment that exceeds your insurance policy limit?

• The insurance covers the full amount regardless of the limit

• You must pay the amount that exceeds the limit

• The insurance policy is cancelled

• The court reduces the payment to match the limit

What is a copay in health insurance?

• The total cost of the insurance premium

• The amount the insurance pays before the deductible is met

• A type of insurance policy

• A small fixed amount you pay for a covered service

How does a copay benefit insurance companies?

• It covers the entire cost of medical procedures

• It encourages preventative care to reduce larger claims

• It increases the total premium collected

• It reduces the number of claims filed