Podcast
Questions and Answers
What is a deductible?
What is a deductible?
Money that you have to pay before the insurance kicks in.
Explain the relationship between premiums and deductibles.
Explain the relationship between premiums and deductibles.
A premium is what you pay to get the insurance. The lower the deductible, the higher the premium and vice versa.
Explain how insurance works including the concept of shared risk.
Explain how insurance works including the concept of shared risk.
A policy in a group where everyone pays something, but if one needs to claim, the collector pays for that one claim.
_______ insurance coverage pays a portion of your salary when you are unable to work due to an injury that did not happen at work.
_______ insurance coverage pays a portion of your salary when you are unable to work due to an injury that did not happen at work.
Explain a preferred provider organization (PPO).
Explain a preferred provider organization (PPO).
Explain a Health Maintenance Organization (HMO).
Explain a Health Maintenance Organization (HMO).
Explain worker's compensation.
Explain worker's compensation.
How do a deductible and coinsurance determine how much you pay for a medical procedure?
How do a deductible and coinsurance determine how much you pay for a medical procedure?
List the three forms of social security benefits (excluding Medicare and Medicaid).
List the three forms of social security benefits (excluding Medicare and Medicaid).
Explain what happens to the social security taxes deducted from your paycheck.
Explain what happens to the social security taxes deducted from your paycheck.
Is the retirement benefit of social security a primary source of income?
Is the retirement benefit of social security a primary source of income?
What is the difference between Medicare and Medicaid?
What is the difference between Medicare and Medicaid?
What does renter's insurance cover?
What does renter's insurance cover?
Explain and give an example of home liability insurance coverage.
Explain and give an example of home liability insurance coverage.
What is a home insurance floater policy?
What is a home insurance floater policy?
What is the difference between replacement cost coverage and actual cash value coverage?
What is the difference between replacement cost coverage and actual cash value coverage?
What is a beneficiary in life insurance?
What is a beneficiary in life insurance?
Should everyone buy individual life insurance? Why or why not?
Should everyone buy individual life insurance? Why or why not?
What factors should be considered in determining how much life insurance to purchase?
What factors should be considered in determining how much life insurance to purchase?
What is term life insurance?
What is term life insurance?
Study Notes
Insurance Basics
- Deductible: Amount paid out-of-pocket before insurance coverage starts.
- Premiums vs. Deductibles: Higher premiums correlate with lower deductibles and vice versa.
Shared Risk Concept
- Insurances pool funds from many individuals, covering claims for members in need.
- Pricing based on risk assessment; higher risk leads to higher premiums.
Types of Insurance
- Disability Insurance: Offers partial salary coverage for non-work-related injuries.
Health Insurance Models
- Preferred Provider Organization (PPO): Flexibility to choose between in-network or out-of-network providers, with higher costs for out-of-network services.
- Health Maintenance Organization (HMO): In-network coverage requiring a primary care physician's referral for specialists; typically costs less with set copays.
Worker's Compensation
- Insurance covering work-related injuries, funded by employers.
Medical Costs
- Deductibles and coinsurance determine out-of-pocket expenses for procedures.
Social Security Benefits
- Three forms: Retirement benefits, Disability benefits, Survivor benefits.
- Social security taxes fund current beneficiaries from the worker's paycheck.
- Retirement benefits are supplementary; additional income sources are typically necessary.
Medicare vs. Medicaid
- Medicare: Health insurance for the elderly and disabled (65+ years); covers 80% of expenses, requiring supplemental insurance for remaining costs.
- Medicaid: Health insurance for low-income individuals, covering total medical costs.
Property Insurance
- Renter's Insurance: Covers personal property damages; affordable insurance option.
- Home Liability Insurance: Covers medical bills and legal fees if someone is injured on your property.
- Home Insurance Floater Policy: Covers valuable movable items, such as jewelry or collectibles.
Coverage Types
- Replacement Cost Coverage: Reimburses the full cost of replacing items without depreciation deductions.
- Actual Cash Value Coverage: Considers depreciation, providing less than original purchase cost.
Life Insurance
- Beneficiary: Individual designated to receive life insurance proceeds upon the policyholder's death (can be primary or secondary).
- Individual vs. Group Life Insurance: Group plans are employer-sponsored, while individual plans are personally purchased. Not everyone needs individual life insurance based on personal circumstances.
- Factors to consider for life insurance needs: gender, dependents, debts, savings, college costs, and funeral expenses.
- Term Life Insurance: Provides benefits only if death occurs within a specified period; premiums increase with age.
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Description
Test your knowledge on essential insurance concepts with these flashcards. Understand key terms like deductible, premiums, and shared risk. Perfect for anyone looking to grasp the fundamentals of insurance.
