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PF Ch.9 Insurance

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

Insurance helps you transfer the __________ from your bank account to the insurance company.

a)

Risk

b)

Money

c)

Insurance

d)

Health

2.

It's wise to have ________ because even if you're a great driver, there are plenty of people who aren't.

a)

Health insurance

b)

An SUV

c)

Liability insurance

d)

A hefty savings account

3.

If you're young and healthy, medical insurance is not as necessary.

a)

True

b)

False

4.

Life insurance guarantees your loved ones get a certain amount of money when you ________________.

a)

Pass away

b)

Turn 18

c)

Get injured

d)

Move out of the house

5.

________ will provide money to replace lost income for years—even up to retirement.

a)

Short-term disability

b)

Necessary insurance

c)

Identity theft protection

d)

Long-term disability

6.

In return for paying the insurance company a fee, they will . . .

a)

Pay for certain expenses or damages

b)

Give you a paycheck every month

c)

Manage your money for you

d)

Create your monthly budget

7.

Renters insurance will cover you and your belongings if there is ever a fire, theft, or vandalism.

a)

True

b)

False

8.

Comprehensive coverage pays for loss or damage to your car caused by _______________.

a)

Anything other than a collision

b)

Accidents that happen on the road

c)

A collision

d)

Personal injuries

9.

Through the Affordable Care Act, you can stay on your parents' health insurance until . . .

a)

You turn 26 years old

b)

You turn 18 years old

c)

You get married

d)

You move out of the house

10.

The purpose of life insurance is to replace your ____________ when you die.

a)

Legacy

b)

Health care

c)

Income

d)

Life

11.

What type of insurance pays for the treatment of injuries and losses to the driver and passengers?

a)

Collision insurance

b)

Personal injury protection

c)

Uninsured motorist protection

d)

Liability insurance

12.

Homeowners insurance costs are _______ in states that are more susceptible to hurricanes, floods or tornadoes.

a)

Higher

b)

Nonexistent

c)

Lower

d)

Better

13.

Medicare and Medicaid are examples of . . .

a)

Health Savings Accounts

b)

Government programs for public health insurance

c)

Private health insurance companies

d)

Emergency Medical Systems

14.

Don't get sucked into the __________ scam.

a)

Self-insurance

b)

Whole life insurance

c)

Term life insurance

d)

Health care

15.

Disability insurance isn't intended to make you __________ but to __________ when you need it.

a)

A millionaire; keep you poor

b)

Hungry; keep food on your table

c)

Poor; make you rich

d)

Rich; pay your bills

16.

Most insurance companies allow a __________, during which you can pay your premium before you lose your coverage.

a)

Grace period

b)

Out-of-pocket maximum

c)

Long-term disability insurance

d)

Claim

17.

Your __________ has all the information you’d need in case of an accident.

a)

Local police station

b)

Liability insurance

c)

Insurance card

d)

Glove box

18.

A high-deductible health plan with lower monthly premiums is a good option for which of the following?

a)

The elderly

b)

People who tend to get sick often

c)

Young, healthy people

d)

College students

19.

__________ will cover you if someone steals your personal information.

a)

Long-term care insurance

b)

Identity theft protection

c)

Supplemental insurance

d)

Short-term disability

20.

A deductible is:

a)

The amount you have to pay before the insurance company will make a payment.

b)

The amount of money the insurance company agrees to pay.

c)

The amount of money you pay for your insurance policy every month.

d)

When you report an incident and ask to be compensated for the cost.

21.

Getting good grades, driving safely, and driving an older car are examples of ways you can...

a)

Lower your auto insurance costs

b)

Avoid getting into an accident

c)

Raise your monthly premiums

d)

Pass your driver's ed test

22.

Umbrella insurance is coverage for...

a)

Damage to your home in a severe thunderstorm

b)

Your wardrobe and accessories

c)

Things that fall outside of your home and auto insurance policies

d)

Homeowners who cannot afford insurance

23.

The cap on the total amount of benefits you can get from your insurance company is called...

a)

The deductible

b)

A Health Savings Account

c)

The lifetime limit

d)

Your premium

24.

Insurance companies look at __________ to determine the cost of your premium.

a)

Your FICO score and how well you pay down debts

b)

How much you have in savings and how likely you are to start investing in the next year

c)

Life expectancy charts, your weight, your age, your hobbies and whether you smoke

d)

Your income

25.

Explain the difference between a premium and a deductible.

a)

A premium is a one-time payment, while a deductible is paid monthly.

b)

A premium is the amount paid for insurance coverage, while a deductible is the amount paid out of pocket before insurance covers expenses.

c)

A premium is paid after an accident, while a deductible is paid before.

d)

A premium is a tax, while a deductible is a fee.

26.

How does a Health Savings Account (HSA) work?

a)

It allows you to save money for any type of expense.

b)

It is a savings account that earns interest like a regular bank account.

c)

It allows you to save money pre-tax for medical expenses.

d)

It is a government-funded account for healthcare.

27.

Who really needs life insurance?

a)

Only people with no dependents.

b)

Only people who are retired.

c)

Anyone who has financial dependents.

d)

Only people with high-risk jobs.