WorksheetsPersonal Finance Chapter 9
Total questions: 35
Worksheet time: 18mins
Which of the following is not a recommended way to save on your health insurance premium?
Increase your stop-loss or your maximum out of pocket expense.
See if a Health Savings Account would make sense for your situation.
Increase your deductible.
If you are young and healthy, you do not need health insurance.
Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more?
A medical emergency
You lose your cell phone
A car accident
Your identity gets stolen
Which of the following types of insurance is not recommended for a young single adult?
Life insurance
Identity theft protection
Auto insurance
Health insurance
The time between the disabling event and the beginning of payments in your disability coverage is called:
Elimination period
Out of pocket
Stop gap
Deductible
Which of the following is not a recommended way of lowering your car insurance premiums?
Shop around
Drop your auto insurance altogether
Increase your deductible
Get good grades and take a driver education class
Life insurance policy for a specific period of time is called:
Whole life
Term
Level
Universal
The purpose of insurance is to:
Develop a savings plan
Provide an investment opportunity
Transfer financial risk
All of the above
Which of the following is not a benefit of having a will?
You only need a will if you have a large estate.
A well-drafted will can allow your family to minimize death taxes and other costs that may drain your estate of assets.
A will enables you to nominate the personas who will handle your estate or serve as guardians to your children, and it allows you to determine who will receive all the property you have accumulated over your lifetime
Your will can be an expression of your personal values
A person becomes self-insured when:
Their kids are grown, they have no debt, and they have fully funded retirement
They have no debt
They own their own business
Everyone should have term life insurance regardless of age or financial well-being
Which of the following statements about life insurance is true?
There is no difference between term and cash value life insurance
You will always need life insurance
Term life insurance should be avoided because the policy will expire and it has no savings plan built into it
Cash value insurance is normally for life and is more expensive than term life insurance because it funds a savings plan
Which of the following is true?
Mortgage life insurance is necessary if you are a homeowner
Any kind of duplicate insurance coverage is a bad idea
Pet insurance is a good idea since pet emergencies can be very expensive
You can never be too safe-there is no bad insurance
Which of the following statements about disability insurance is false?
Disability insurance is not necessary if you have a good health insurance policy
A longer elimination period will lower your premium cost
Your coverage should be for 65% of your income
After college, short-term disability should be covered by your emergency fund of three to six months' worth of expenses, staying out of debt, and having a money plan
Which of the following statements about long-term care insurance is false?
A good long-term care policy will include in-home care
You should not buy long-term care insurance until age 30
At least 69% of people over the age of 65 will require long-term care at some point
Long-term care insurance is not the same as disability or short-term medical care
You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:
Liability
Collision
Uninsured motorist protection
Comprehensive
Which of the following policies would be a duplicate coverage for your health insurance policy?
Disability insurance
Auto insurance
Long-term care insurance
Cancer and hospital indemnity insurance
The recipient of assets passed on from the death of a friend or relative
insured
beneficiary
Describes the type of coverage in an insurance agreement
policy
premium
An amount of money you pay to help cover a portion of your medical costs
annuity
co-payment
A legally enforceable of declaration of how a person wishes his or her property to be distributed after death
policy
will
Amount you must pay before you begin receiving any benefits from your insurance company
deductible
income
Specific amount of money that you pay when insurance only covers a portion of costs
fee
out of pocket expense
Insurance that covers property damage and medical bills if you are at fault in a car accident or if someone gets hurt on your property
uninsured motorist protection
liability
Applies to the amount of protection you have through an insurance company in the event of a loss
coverage
premium
The amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
premium
co-pay
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
appraisal
claim
Disability insurance offered through your employer is usually the most expensive coverage option.
True
False
Good identity theft protection includes restoration services.
True
False
You should not buy identity theft protection that only provides credit report monitoring.
True
False
Any insurance with case value or that combines insurance with investments is a bad idea.
True
False
Duplicate coverage, or any extra insurance on top of your existing insurance is not necessary.
True
False
Prepaid burial policies are a good idea.
True
False
Renter's insurance is not necessary if you don't have a lot of expensive things.
True
False
Following the Five Foundations will help you to, one day, become self-insured.
True
False
After high school, you should have the following types of insurance: auto, renter's, health and long-term care insurance.
True
False
Comprehensive coverage takes care of damage to your car that is not caused by a collision.
True
False
