WorksheetsPersonal Finance Review
Total questions: 41
Worksheet time: 28mins
What is the term for a financial product that protects against loss?
Premium
Insurance
Co-pay
Risk
Which term refers to the amount you pay to maintain insurance coverage?
Policy
Premium
Equity
Risk
What is the term for a legal document explaining who receives your property after death?
Will
Corporation
Franchise
Equity
Which term describes the likelihood of loss an insurance company assesses?
Co-pay
Risk
Sole Proprietorship
Policy
What is the term for a fixed fee you pay for each covered health service?
Co-pay
Premium
Insurance
Equity
Which term refers to the formal contract outlining your coverage and terms?
Policy
Franchise
Corporation
Depreciation
What is the term for the value of ownership in an asset, such as a home?
Equity
Budget
Depreciation
Auto Lease
Which term refers to a business owned by one person who is fully liable for all losses?
Sole Proprietorship
Corporation
Franchise
Auto Lease
What is the term for a business model that allows others to operate under your brand name?
Franchise
Corporation
Insurance
Risk
Which term refers to the agreement between you and your insurance company?
Corporation
Policy
Premium
Insurance
What is the term for the process of reducing the value of an asset over time?
Depreciation
Budget
Equity
Auto Lease
Which term refers to a plan for managing income and expenses?
Budget
Credit Score
Depreciation
Auto Lease
What is the term for a numerical representation of a person's creditworthiness?
Credit Score
Identity Theft
Budget
Depreciation
Which term refers to the unauthorized use of someone's personal information for financial gain?
Identity Theft
Credit Score
Insurance
Risk
What is the term for a contract that allows you to use a vehicle for a specified period?
Auto Lease
Depreciation
Budget
Equity
What type of insurance provides coverage for medical expenses?
Health Insurance
Auto Insurance
Life Insurance
Renter’s Insurance
Which type of insurance provides financial support to beneficiaries after the policyholder's death?
Life Insurance
Health Insurance
Auto Insurance
Home Insurance
What type of insurance protects your home and belongings against damages or theft?
Home Insurance
Renter’s Insurance
Auto Insurance
Life Insurance
Which type of insurance provides coverage for personal belongings in a rented property?
Renter’s Insurance
Home Insurance
Auto Insurance
Health Insurance
What is the term for a legal entity that separates personal liability from business liability?
Corporation
Sole Proprietorship
Franchise
Equity
What makes a corporation less risky for owners compared to a sole proprietorship?
Owners are personally responsible for all debts.
Corporations provide limited liability, protecting owners from personal responsibility for debts.
Corporations require owners to pay all debts directly.
Sole proprietorships offer limited liability to owners.
Why is having a will important for financial planning?
It ensures assets are distributed according to your wishes after death.
It increases your ownership stake in property.
It helps you avoid paying insurance premiums.
It eliminates the need for budgeting.
How do insurance companies determine your risk level?
By assessing factors like age, driving record, health, and property value.
By randomly assigning risk levels to individuals.
By evaluating your income and expenses.
By reviewing your will and financial planning documents.
In Texas, do drivers need auto insurance to drive legally?
No, drivers in Texas are not required to have auto insurance.
Yes, drivers in Texas are required to have auto insurance to legally operate a vehicle.
Drivers in Texas only need insurance for new vehicles.
Drivers in Texas need insurance only for commercial vehicles.
Describe how owning a home can help you build equity.
Compare debit cards and mobile payment apps in terms of safety and convenience.
Why is tracking income and expenses a key part of financial success?
It helps individuals budget, plan for savings, and avoid overspending.
It eliminates the need for insurance coverage.
It increases the value of your property.
It ensures your assets are distributed after death.
Explain the role of a premium in maintaining insurance coverage.
What information is typically found in an insurance policy?
Coverage details, limits, deductibles, premiums, and terms and conditions.
Information about budgeting and savings plans.
Details about property ownership and equity.
Information about debit cards and mobile payment apps.
How can life insurance support a family’s financial stability after a death?
By helping cover expenses such as mortgage, education, or daily living costs.
By eliminating the need for budgeting.
By increasing the value of the insured person’s property.
By providing debit cards for payments.
What is the main purpose of purchasing insurance?
To protect against financial loss from unexpected events.
To increase your credit score.
To reduce the value of your property.
To avoid paying taxes.
Which document outlines the specific risks covered and excluded by your insurance?
Budget
Will
Policy
Franchise Agreement
What is a deductible in an insurance policy?
The interest earned on your savings account.
The total value of your assets.
The amount you pay out of pocket before insurance covers the rest.
The monthly payment for your insurance.
____ covers loss to your personal items but not the building.
Renter's Insurance
Dwelling Insurance
Homeowner's Insurance
Supplemental Insurance
What does the policyholder pay to the insurer to protect them from financial loss?
claim
liability
premium
deductible
A contract between a policyholder and a provider that will protect and reimburse for damages that are covered under the policy
Co-pay
Claim
Premium
Insurance
Evaluate the benefits and drawbacks of purchasing a high-deductible health insurance plan.
High-deductible plans typically have lower premiums but higher out-of-pocket costs, which can be beneficial for healthy individuals but risky for those with frequent medical needs.
High-deductible plans always result in lower overall healthcare costs.
High-deductible plans are only available to individuals over 50.
High-deductible plans provide more comprehensive coverage than low-deductible plans.
What is a deductible in an insurance policy?
The amount the insurer pays before the policyholder pays anything
The amount the policyholder must pay out-of-pocket before the insurer covers the remaining costs
The total premium paid annually
The maximum amount the insurer will pay for a claim
What type of insurance policy pays for funeral and burial costs?
Business
Renter's
Life
Health
