Podcast
Questions and Answers
Generally, the higher the deductible on an insurance policy, the ___
Generally, the higher the deductible on an insurance policy, the ___
What is the cost of Gwen's auto insurance policy called?
What is the cost of Gwen's auto insurance policy called?
premium
The purpose of insurance is NOT to:
The purpose of insurance is NOT to:
What step will not provide protection during Neil's trip?
What step will not provide protection during Neil's trip?
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What will a person receive if they surrender a $20,000 whole life insurance policy at the time of surrender?
What will a person receive if they surrender a $20,000 whole life insurance policy at the time of surrender?
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Why is term life insurance usually the least expensive type of life insurance?
Why is term life insurance usually the least expensive type of life insurance?
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Who is liable for the damage to Richard's car and his personal injuries after the accident?
Who is liable for the damage to Richard's car and his personal injuries after the accident?
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In the case of a $2,000 loss, what does the $500 the insurance did not pay represent?
In the case of a $2,000 loss, what does the $500 the insurance did not pay represent?
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What statement would be most appropriate for a woman who has just received a very expensive piece of jewelry?
What statement would be most appropriate for a woman who has just received a very expensive piece of jewelry?
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What is the only type of life insurance that does not develop a cash value?
What is the only type of life insurance that does not develop a cash value?
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Why would a person want to add a personal property floater to their homeowner's insurance after buying an expensive TV?
Why would a person want to add a personal property floater to their homeowner's insurance after buying an expensive TV?
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When a self-employed person decides to purchase disability insurance, it is generally to:
When a self-employed person decides to purchase disability insurance, it is generally to:
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What term describes paying unnecessary premiums for insurance?
What term describes paying unnecessary premiums for insurance?
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What term describes people who have insurance but are still considered financially vulnerable to high health expenses?
What term describes people who have insurance but are still considered financially vulnerable to high health expenses?
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What type of life insurance provides insurance for a fixed amount at a definite premium for the insured's lifetime?
What type of life insurance provides insurance for a fixed amount at a definite premium for the insured's lifetime?
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What type of insurance provides social insurance for the disabled?
What type of insurance provides social insurance for the disabled?
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What is the term for insurance or pension money payable to a beneficiary of a deceased?
What is the term for insurance or pension money payable to a beneficiary of a deceased?
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What type of insurance covers the loss of a tenant's personal property as a result of damage or theft?
What type of insurance covers the loss of a tenant's personal property as a result of damage or theft?
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What term describes a venture undertaken without regard to possible loss or injury?
What term describes a venture undertaken without regard to possible loss or injury?
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What is the term for a person whose interests are protected by an insurance policy?
What is the term for a person whose interests are protected by an insurance policy?
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What type of health insurance limits participants to seek health care from a specific list of providers?
What type of health insurance limits participants to seek health care from a specific list of providers?
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What is the term for payment for insurance?
What is the term for payment for insurance?
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What type of insurance covers loss due to theft or traffic accidents?
What type of insurance covers loss due to theft or traffic accidents?
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What is known as 'pure protection' insurance that is less expensive than 'permanent' life insurance?
What is known as 'pure protection' insurance that is less expensive than 'permanent' life insurance?
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What can help a person lower personal risk of loss?
What can help a person lower personal risk of loss?
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What type of car insurance would typically cover damage if a car was damaged in a flood?
What type of car insurance would typically cover damage if a car was damaged in a flood?
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How should a person decide how much coverage she needs when selecting renters insurance?
How should a person decide how much coverage she needs when selecting renters insurance?
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Why is car insurance more expensive for teenage males than teenage females?
Why is car insurance more expensive for teenage males than teenage females?
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What benefit allowed a person to buy a new Apple computer after hers was destroyed in a fire?
What benefit allowed a person to buy a new Apple computer after hers was destroyed in a fire?
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If a driver receives several traffic tickets, what is likely to happen to the cost of their car insurance?
If a driver receives several traffic tickets, what is likely to happen to the cost of their car insurance?
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What is the term for the amount paid to an insurance company for a policy and coverage?
What is the term for the amount paid to an insurance company for a policy and coverage?
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Before a person can receive money to cover the damage from a car accident, what must they do?
Before a person can receive money to cover the damage from a car accident, what must they do?
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What is the key word for insurance companies when establishing the cost for a policy?
What is the key word for insurance companies when establishing the cost for a policy?
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What are the two types of life insurance policies?
What are the two types of life insurance policies?
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What is the best strategy when shopping for life insurance?
What is the best strategy when shopping for life insurance?
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What is the purpose of life insurance?
What is the purpose of life insurance?
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What insurance pays a portion of your salary if you are injured at home and can't work?
What insurance pays a portion of your salary if you are injured at home and can't work?
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What is the term for finding ways to lower your chance of loss?
What is the term for finding ways to lower your chance of loss?
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What is buying an insurance policy for your home known as?
What is buying an insurance policy for your home known as?
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What does liability insurance on your car cover?
What does liability insurance on your car cover?
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Who needs life insurance?
Who needs life insurance?
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Homeowner's insurance protects a home from fire damage but does not include liability coverage.
Homeowner's insurance protects a home from fire damage but does not include liability coverage.
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What type of coverage is needed to repair your car if you hit a tree?
What type of coverage is needed to repair your car if you hit a tree?
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What is a person designated to receive money from a life insurance policy known as?
What is a person designated to receive money from a life insurance policy known as?
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What is the amount paid out-of-pocket by the policy holder before the insurance kicks in?
What is the amount paid out-of-pocket by the policy holder before the insurance kicks in?
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A dependent is someone who relies on someone else financially.
A dependent is someone who relies on someone else financially.
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The higher your deductible, the ___________ your premium will be.
The higher your deductible, the ___________ your premium will be.
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The more valuable your property is, the more _____________ your premium will be.
The more valuable your property is, the more _____________ your premium will be.
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Things that can increase your insurance premiums include all except:
Things that can increase your insurance premiums include all except:
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What is the money Mr. Acorn receives as the beneficiary on his wife's life insurance?
What is the money Mr. Acorn receives as the beneficiary on his wife's life insurance?
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Dental and vision care insurance are generally sold separately from basic insurance coverage.
Dental and vision care insurance are generally sold separately from basic insurance coverage.
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What insurance should a store owner concerned about customers being injured in their store get?
What insurance should a store owner concerned about customers being injured in their store get?
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What protects against financial loss caused by the costs of illness or accident, including preventative care?
What protects against financial loss caused by the costs of illness or accident, including preventative care?
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What are the four general types of health insurance?
What are the four general types of health insurance?
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What are co-pays?
What are co-pays?
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What is a written contract detailing what an insurance company will cover, how much it will pay, and how much the insured will pay?
What is a written contract detailing what an insurance company will cover, how much it will pay, and how much the insured will pay?
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What is the maximum amount the insurance company will pay if you file a claim?
What is the maximum amount the insurance company will pay if you file a claim?
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What covers damage you cause to other people's property and bodily injuries you cause to people outside of your car?
What covers damage you cause to other people's property and bodily injuries you cause to people outside of your car?
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What covers lost wages and medical expenses if the other vehicle doesn't have coverage?
What covers lost wages and medical expenses if the other vehicle doesn't have coverage?
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What type of insurance covers when the cost of repair from an accident caused by the other driver is greater than their coverage limits?
What type of insurance covers when the cost of repair from an accident caused by the other driver is greater than their coverage limits?
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Study Notes
Insurance Basics
- Higher deductibles result in lower premiums: This means that if you are willing to pay more out-of-pocket in case of a claim, your regular insurance payments will decrease.
- Premium refers to the cost of an insurance policy: This is the amount paid periodically to keep the insurance coverage active.
Types of Insurance
- Insurance does not aim to diversify an investment portfolio: Its main purpose is risk management, not investment diversification.
- Whole life insurance provides fixed premiums and develops cash value over time, unlike term life insurance which offers death benefits only.
- Disability insurance protects self-employed individuals against lost income due to inability to work from illness or injury.
Claim Process and Coverage
- In claims, policyholders must file a claim with their insurance company to receive compensation for damages.
- Deductibles are the amount a policyholder must pay before the insurance covers the rest of the claim, leading to partial payments in case of losses.
- Replacement value ensures that insured individuals can afford to replace lost or damaged property without depreciation affecting the payout.
Responsibility and Liability
- If an insurance policy has expired at the time of an accident, the insured individual is liable for any damages incurred.
- Liability insurance covers damages caused to another party in the event of an accident, including property and bodily injury.
Risk Management
- Reducing personal risk of loss can effectively be achieved through obtaining insurance coverage.
- Risk transfer refers to shifting the financial burden of loss or damage from an individual to an insurance company.
Health Insurance Insights
- Health insurance encompasses various types including medical, dental, vision, and disability, and includes coverage for preventative care.
- Co-pays are an out-of-pocket expense that insured individuals pay at the time of service, usually required for most health plans.
Additional Details
- Personal property floaters can provide extra coverage for valuable items, protecting them against loss or theft outside of standard homeowners insurance.
- The insured is the individual whose interests are protected under the insurance policy.
- Under-insured individuals have insurance but still maintain vulnerability due to high healthcare costs.
Policy Terms and Conditions
- An insurance policy is a written contract detailing coverage, payment responsibilities, and limits.
- Coverage limits determine the maximum payout an insurance company is willing to provide for a claim.
- Beneficiaries are designated persons who receive payouts from life insurance policies upon the insured person's death.
Premium Factors
- Factors increasing premiums include the value of the insured property and claims history; good grades can lead to discounts, contrary to the other factors.
- Teen males typically have higher car insurance premiums based on statistics showing a greater number of accidents compared to teen females.
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Description
Test your knowledge on the fundamentals of insurance, including types, premiums, and the claims process. This quiz covers essential concepts such as deductibles, whole life vs. term life insurance, and disability insurance. Get ready to enhance your understanding of risk management through insurance.
