WorksheetsInsurance Unit Review
Total questions: 29
Worksheet time: 15mins
What is the purpose of insurance?
To avoid all financial risk
To eliminate the need for emergency savings
To transfer risk from yourself ot an insurance agency
To increase your income over time
What does a premium refer to in insurance?
The amount the insurance company pays you
A reward for not filing any insurance claims
The monthly or annual cost to maintain coverage
A deductible you pay at the time of service
A deductible is:
The amount your insurer pays after a claim
The amount you pay out of pocket
A type of insurance fraud
A bonus for safe driving
Which type of insurance is required by law in most states for car owners?
Health Insurance
Life Insurance
Homeowners Insurance
Auto Liability Insurance
What does Renters Insurance cover?
The physical building structure
The renter's personal belongings
The landlord's property
Theft
Which of the following would NOT be covered by standard health insurance?
Annual Check-Ups
Emergency Room visits
Over-the-counter medication
Surgery
A beneficiary is:
The person who sells you insurance
The person who receives the payout from life insurance
the government official who monitors insurance claims
The medical provider in your health network
Why might someone choose a higher deductible?
To avoid paying premiums
To get lower premiums
To receive more coverage
To reduce out-of-pocket costs
What is the purpose of disability insurance?
To pay for funeral costs
To cover lost wages if you cannot work
To pay for damages to your car
To protect your home from flooding
If you are "underinsured," it means:
You have no insurance
Your insurance covers too much
Your coverage may not fully protect you
You are paying too much for premiums
What does it mean to "file a claim"?
Buy a new insurance policy
Report a loss to your insurance company
Cancel your insurance
Meet your deductible
Why is it important to shop around for insurance?
To reduce risk of accidents
To find the lowest deductible
To find the best price and coverage
To make sure you can file multiple claims
Life Insurance is typically used to:
Pay off Student Loans
Provide income to your dependents
Cover damages in a car accident
Buy a new home
Which of the following is true about insurance fraud?
It's a good way to get more money from your insurer
It's illegal and can lead to serious consequenses
It's encouraged by certain insurance companies
It only applies to car insurance
What's the relationship between premiums and deductibles?
Higher deductibles usually means higher premiums
Higher deductibles usually means lower premiums
There is no relationship
Premiums only apply to health insurance
Insurance allows people to completely eliminate financial risk
True
False
Health insurance can help reduce the cost of doctor visits and prescriptions.
True
False
Life insurance is most important for people with no dependents or family.
True
False
You always have to pay both a deductible and a copay for every insurance claim.
True
False
Auto insurance can help cover injuries and property damage after an accident
True
False
Insurance policies are legally binding contratcts.
True
False
Flood damage is automatically covered by homeowners insurance.
True
False
People with more valuable assets may want higher liability coverage.
True
False
Disability insurance can replace a portion of your income if you're injured and can't work.
True
False
Insurance companies always approve claims right away.
True
False
What is the primary purpose of life insurance?
To pay back our parents for the money they spent on us if we die
To help maintain the standard of living of those who depend on our income, such as your spouse and children
To pay us an income if we are injured and can't work
To help save money for old age
Which insurance type is intended to provide financial support to a person's beneficiaries after their death?
Health Savings Account
Life Insurance
Renter’s Insurance
Supplemental Insurance
The value of buying insurance for a cell phone is to
permit an upgrade to a newer model cell phone.
be able to replace the cell phone if it is lost or stolen.
lower the cost of roaming charges on the cell phone.
be able to change the cell phone service provider.
Chloe wants to ensure that her family is financially secure in the event of her passing. Which type of insurance should she consider?
Health Savings Account
Life Insurance
Renter’s Insurance
Supplemental Insurance
