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Money Matters 4
| Question | Answer |
|---|---|
| allows individuals to collectively share the cost of such losses by paying their money into one large pool of money, making it more affordable for everyone to cover a financial loss if it occurs. | insurance |
| Insurance is defined as the equitable transfer of the risk of a loss from an individual to an insurer in exchange for a | premium |
| an amount of money we might pay to an insurance company on a monthly or an annual basis for the payment of that insurance. | premium |
| there are _____ basic principles to insurance and risk management. | 7 |
| The premium an individual will have to pay for a potential loss to be covered cannot be so __________ the insurer is really not taking on any risk. | expensive |
| 2 elements of cost for insuring a risk | One is calculation of the probability of loss, which is done by the insurer, and the other is called attendant cost. |
| the amount of that loss you are going to suffer yourself before the insurance company pays their portion of the loss. | deductible |
| is used to provide financial support in the event of your death to your dependents so their lives can continue, at least financially, after you are gone. | life insurance |
| The life insurance policy pays the ___________ of the policy when the person who was actually insured dies, assuming all premiums have been properly paid. | beneficiary |
| 2 basic types of life insurance policies | term and cash value |
| 3 ways to buy a term policy | 1. decreasing 2. Level premium 3. Annual renewable |
| term policy is where the face value decreases each year. | decreasing |
| policy’s premiums are adjusted, usually higher, each year when the policy is reviewed and renewed. | annual renewable |
| policy is when your premium in year one is going to be the same as it will in the final year of the policy. | level premium ` |
| The least expensive types of life insurance | term |
| 3 types of cash value | 1. Whole 2. Variable 3. Universal |
| is used to cover the costs of medical treatments, such as surgeries, hospital stays, some doctor visits, and in some cases, prescription costs. ` | health insurance |
| Your monthly premium on an individual health policy will most likely be higher than it would be if you were part of a | group |
| s an insurance program designed for low-income individuals in low-income households. | medicaid |
| CHIP stands for | Children’s Health Insurance Programs. |
| is designed to provide health care coverage for children of families who cannot afford individual health coverage, but make too much money to qualify for Medicaid. | CHIP |
| pays you a percentage of your earned income during the time period you are unable to work because of a disability. | disability insurance |
| is a federal funded government health plan for individuals over the age of 65. | medicare |
| are specific types of losses which will not be covered in the homeowner’s policy. | exclusions |
| is probably the most common form of insurance. | auto insurance |
| may cover both legal liability claims against the driver if possibly he is at fault for causing the accident, and loss of or damage to the insured’s vehicle itself. | auto insurance |
| younger drives have | higher premiums |
| A driver with claims on a previous policies will have | higher premiums |
| the lower credit score | higher premium |
| What is the name of the act that everyone refers to as Obamacare? | affordable care act |
| When did President Obama sign this law | March 23, 2010 |
| . When did the Supreme Court uphold the law? | June 28, 2012 |
| Does Obamacare replace private insurance, medicaid or medicare? | no |
| Does every American have to have insurance under the law? | yes |
| Are there penalties for not carrying health insurance? | yes |
| What ratio of Americans have a “pre-existing” condition that would have denied them health insurance previous to the law? | 1 in 2 |
| What percentage of personal bankruptcies are due to medical bills? | 60% |
| is a type of coverage in your auto insurance policy, the insurer agrees to pay damages, that is, medical costs or repair costs if you injure someone or his property in an auto accident. | Liability coverage for bodily injury and property damage |
| insurance provides protection to replace or repair your vehicle if you are in an accident regardless of who is at fault. | collision coverage |
| pays to repair your vehicle less your deductible when it is damaged in ways which do not involve an actual collision. | comprehensive coverage |
| is for medical and other expenses which are a result of an automobile accident for the people who are specifically named in the policy. | personal injury coverage |
Created by:
moriahr25
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