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Insurance 101: Protecting Your Future Quiz

Total questions: 15

Worksheet time: 9mins

Name
Class
Date
1.

What is insurance?

a)

A contract between you and a bank to cover loans

b)

A contract between you and the insurance company to cover unexpected events

c)

A contract between you and a retailer for product warranties

d)

A contract between you and a government agency for tax purposes

2.

Which of the following can be insured?

(May choose more than one)

a)

Car, Home, Life

b)

Jewelry, Electronics, Furniture

c)

Pets, Plants, Artwork

d)

Clothing, Shoes, Accessories

3.

What determines the cost of the insurance premium?

(May choose more than one)

a)

Your age and gender

b)

Your risk profile, including your credit worthiness

c)

The number of claims you file

d)

The type of car you drive

4.

What is a deductible in insurance terms?

a)

The monthly payment you make to an insurance company

b)

The fee charged for late payments

c)

The total amount covered by the insurance policy

d)

The amount you must pay out of pocket before insurance kicks in

5.

How can you save money on insurance?

a)

Increase your premium

b)

Bundle policies and increase your deductible

c)

Decrease your deductible

d)

Pay monthly instead of annually

6.

What must you do first before insurance covers the rest of your expenses?

a)

Pay your deductible in full

b)

Pay your premium in full

c)

Call your insurance company

d)

Submit a claim form

7.

What is a common mistake to avoid when choosing an insurance plan?

a)

Reading the policy details

b)

Getting the cheapest plan with sufficient coverage

c)

Missing payment deadlines

d)

Comparing plans and prices

8.

What happens if you are in a life-threatening condition at a hospital?

a)

You must pay upfront

b)

Hospitals must stabilize you regardless of insurance status

c)

You need to show proof of insurance

d)

You will be transferred to another facility

9.

What is free regardless of insurance status?

a)

Dental check-ups

b)

Prescription medications

c)

Flu and COVID vaccines

d)

Vision tests

10.

If you make under $21,600 a year, what can you qualify for?

a)

Private insurance

b)

Medicare

c)

Medicaid

d)

Employer-sponsored insurance

11.

The reason car insurance is so high for people 25 and under is because car accidents are the #1 cause of death in teenagers.

a)

True

b)

False

12.

You do not need coverage for underinsured and uninsured motorists. That way, you cannot be covered if someone uninsured or underinsured hits you.

a)

True

b)

False

13.

What is a key characteristic of term life insurance?

a)

It costs a lot of money.

b)

It is less expensive than whole life insurance.

c)

It lasts for a limited amount of time.

d)

It is hard to get.

14.

What type of life insurance allows policyholders to borrow money from the policy?

(a)  

15.

What factors are typically considered in the premium calculation for term life insurance?

a)

Dairy intake

b)

Creditworthiness (credit score)

c)

Lifestyle choice

d)

Ability to pay