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Health and Life Insurance Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is the primary purpose of health insurance?

a)

To cover routine home maintenance

b)

To provide financial protection against medical expenses

c)

To increase your income

d)

To pay for gym memberships

2.

What is a premium in health insurance?

a)

The amount the insurance company pays for your medical bills

b)

The money a policyholder pays regularly to keep the insurance active

c)

A one-time fee for using health insurance

d)

The maximum amount you can spend on healthcare per year

3.

Which of the following describes a deductible?

a)

The total amount your insurance will pay each year

b)

The amount you must pay out of pocket before insurance starts covering costs

c)

The percentage of a medical bill you must pay after your insurance covers its share

d)

A bonus payment given to policyholders

4.

What is copayment (copay)?

a)

The total cost of medical services covered by insurance

b)

A fixed amount you pay for specific medical services, like doctor visits or prescriptions

c)

The percentage of medical costs shared between you and your insurance

d)

The yearly maximum amount you have to pay for healthcare

5.

What does coinsurance refer to?

a)

A type of discount offered by insurance companies

b)

A fixed fee for medical services

c)

The percentage of costs shared between you and your insurance after meeting the deductible

d)

The total cost of a health insurance policy

6.

What is an out-of-pocket maximum?

a)

The total amount the insurance company will pay for medical expenses

b)

The maximum amount you pay for covered medical services in a year before insurance covers 100%

c)

The deductible plus the premium

d)

The cost of a major surgery

7.

If you lose your job, which government program allows you to keep your employer-sponsored health insurance for a limited time?

a)

Medicare

b)

Medicaid

c)

COBRA

d)

HSA

8.

Which government program provides health insurance for low-income individuals and families?

a)

Medicare

b)

Medicaid

c)

COBRA

d)

HSA

9.

What is a Health Savings Account (HSA)?

a)

A savings account specifically for dental insurance

b)

A government program that provides free health insurance

c)

A tax-advantaged account used to pay for qualified medical expenses

d)

A type of health insurance plan for retirees

10.

What is the primary purpose of life insurance?

a)

To provide financial protection to beneficiaries after the policyholder's death

b)

To serve as a savings account for retirement

c)

To cover routine medical expenses

d)

To pay for car insurance premiums

11.

What happens when a term life insurance policy expires?

a)

The coverage automatically renews at the same rate

b)

The policyholder must purchase a new policy or go without coverage

c)

The policy converts into whole life insurance

d)

The beneficiaries receive a payout

12.

Which type of life insurance includes a cash value component that grows over time?

a)

Term Life Insurance

b)

Whole Life Insurance

c)

Accidental Death Insurance

d)

Group Life Insurance

13.

If a policyholder stops paying premiums on a whole life insurance policy, what typically happens?

a)

The policy immediately cancels, and no benefits are paid

b)

The policy stays in force forever without payment

c)

The policy may stay active using its cash value, or it may lapse

d)

The beneficiaries still receive the full death benefit

14.

What is the main difference between whole life and term life insurance?

a)

Whole life insurance is only for high-income earners

b)

Term life insurance lasts for a specific time, while whole life insurance provides lifelong coverage

c)

Whole life insurance is cheaper than term life insurance

d)

Term life insurance includes a cash value savings component

15.

Who typically needs life insurance the most?

a)

Young, single individuals with no dependents

b)

Retirees with no outstanding debts

c)

Parents with young children and financial obligations

d)

Individuals who have no financial responsibilities