Podcast
Questions and Answers
While paying insurance premiums may feel like you're losing money, in the end it really helps you ___ more of it.
While paying insurance premiums may feel like you're losing money, in the end it really helps you ___ more of it.
get
When the consumer is _____ with ___________, the consumer makes different decisions.
When the consumer is _____ with ___________, the consumer makes different decisions.
armed, information
The purpose of insurance is to ________ risk.
The purpose of insurance is to ________ risk.
transfer
Without proper insurance, certain losses can ________ you.
Without proper insurance, certain losses can ________ you.
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Insurance puts an ________ over your life, the hard work that you've done, the money you've saved, and the money that you have to invest.
Insurance puts an ________ over your life, the hard work that you've done, the money you've saved, and the money that you have to invest.
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If you have a full emergency fund, the best way to keep your premiums down is to raise your __________.
If you have a full emergency fund, the best way to keep your premiums down is to raise your __________.
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Homeowner's insurance should be 'guaranteed ___________ cost' instead of extended replacement cost.
Homeowner's insurance should be 'guaranteed ___________ cost' instead of extended replacement cost.
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When you are ready to move out of your parents' house, you need to have _______ insurance, which covers the ________ of the renter's apartment in the event of a fire, storm, or theft.
When you are ready to move out of your parents' house, you need to have _______ insurance, which covers the ________ of the renter's apartment in the event of a fire, storm, or theft.
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________ liability policies are a good buy once you have some assets.
________ liability policies are a good buy once you have some assets.
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Increase your __________ and/or coinsurance amount.
Increase your __________ and/or coinsurance amount.
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Increase your -, but never decrease your maximum pay.
Increase your -, but never decrease your maximum pay.
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See if an ___, a Health Savings Account, would make sense for your situation.
See if an ___, a Health Savings Account, would make sense for your situation.
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The HSA is a -_______ savings account for medical expenses that works with a high-deductible insurance policy.
The HSA is a -_______ savings account for medical expenses that works with a high-deductible insurance policy.
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Long-term care insurance is for _______ homes, assisted living facilities or in-home care.
Long-term care insurance is for _______ homes, assisted living facilities or in-home care.
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A good long-term care policy will include -__ care.
A good long-term care policy will include -__ care.
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You should not buy long-term care insurance until age __.
You should not buy long-term care insurance until age __.
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At least __% of people over the age of 65 will require long-term care at some point.
At least __% of people over the age of 65 will require long-term care at some point.
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Disability insurance is designed to replace ______ lost due to a short-term or permanent disability.
Disability insurance is designed to replace ______ lost due to a short-term or permanent disability.
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Try to buy disability insurance that pays if you cannot do the job that you were _______ or educated to do.
Try to buy disability insurance that pays if you cannot do the job that you were _______ or educated to do.
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That is called ____________ or 'own occ' disability.
That is called ____________ or 'own occ' disability.
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Beware of _- policies covering less than five years.
Beware of _- policies covering less than five years.
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Your coverage should be for __% of your current income.
Your coverage should be for __% of your current income.
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The ___________ period is the time between the disabling event and when the payments actually begin.
The ___________ period is the time between the disabling event and when the payments actually begin.
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A ______ elimination period will _____ your premium cost.
A ______ elimination period will _____ your premium cost.
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Don't buy identity theft protection that only provides credit report __________.
Don't buy identity theft protection that only provides credit report __________.
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Good protection includes ___________ services that assign a _________ to clean up the mess.
Good protection includes ___________ services that assign a _________ to clean up the mess.
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Life insurance is to replace lost income due to _____.
Life insurance is to replace lost income due to _____.
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____ insurance is for a specified period, is substantially cheaper, is easy to understand, and has no savings plan built into it.
____ insurance is for a specified period, is substantially cheaper, is easy to understand, and has no savings plan built into it.
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____ _____ insurance is normally for life and is more expensive because it funds a savings plan.
____ _____ insurance is normally for life and is more expensive because it funds a savings plan.
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The most common insurance myth is that the need for life insurance is a _________ situation.
The most common insurance myth is that the need for life insurance is a _________ situation.
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If you save, invest, stay out of debt, and have a solid financial plan, you will eventually become -___.
If you save, invest, stay out of debt, and have a solid financial plan, you will eventually become -___.
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______ life/disability: pays off a borrower's debt if that borrower dies or becomes disabled.
______ life/disability: pays off a borrower's debt if that borrower dies or becomes disabled.
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Credit ____ protection: insures your credit card debt (you should avoid owning a credit card, period).
Credit ____ protection: insures your credit card debt (you should avoid owning a credit card, period).
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______ and hospital indemnity insurance: insures you against cancer or other medical issues.
______ and hospital indemnity insurance: insures you against cancer or other medical issues.
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Accidental _____: insures you against unexpected accidents that cause your death.
Accidental _____: insures you against unexpected accidents that cause your death.
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Any insurance with ____ _____, investments or refunds: anything that combines insurance with investments is a bad idea.
Any insurance with ____ _____, investments or refunds: anything that combines insurance with investments is a bad idea.
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Prepaid ______ policies: if invested instead, this money would pay for the burial policy many times over.
Prepaid ______ policies: if invested instead, this money would pay for the burial policy many times over.
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________ life insurance: pays off your home mortgage if you die unexpectedly or become disabled.
________ life insurance: pays off your home mortgage if you die unexpectedly or become disabled.
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Any kind of _________ coverage: any extra insurance on top of your existing insurance.
Any kind of _________ coverage: any extra insurance on top of your existing insurance.
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Study Notes
Insurance Essentials
- Paying insurance premiums may feel like a loss, but it helps retain more money long-term.
- Being equipped with accurate information empowers consumers to make better financial decisions.
- Insurance serves to transfer risk away from individuals.
Importance of Insurance
- Lack of proper insurance can lead to bankruptcy due to substantial losses.
- Insurance acts as an umbrella, protecting your hard-earned assets and savings.
Homeowners and Renters Insurance
- Raising deductibles can lower insurance premiums if a full emergency fund is in place.
- Homeowner's insurance should offer guaranteed replacement cost for optimal coverage.
- Renters insurance is essential when moving out, covering personal belongings against damage or theft.
Liability and Long-Term Care
- Umbrella liability policies are advisable for those with accumulated assets.
- Long-term care insurance is crucial for those entering nursing homes or requiring assisted living.
- A comprehensive long-term care policy should include in-home care services.
Long-Term Care Statistics
- Individuals should consider purchasing long-term care insurance starting at age 60.
- At least 70% of people over 65 will need some form of long-term care.
Disability Insurance Insights
- Disability insurance replaces lost income resulting from temporary or permanent disabilities.
- Select disability insurance that covers "own occupation," ensuring that it pays if you're unable to perform your trained job.
- Short-term disability policies covering less than five years are often less beneficial.
Financial Coverage Details
- Coverage should equal 65% of your current income for disability insurance.
- An elimination period is the duration from disability occurrence until payments begin; longer periods lower premiums.
Identity Theft Protection
- Effective identity theft protection includes more than just credit report monitoring; it should offer restoration services.
- Specialists or counselors should be assigned to resolve identity theft issues effectively.
Life Insurance Fundamentals
- Life insurance replaces income lost due to death.
- Term life insurance is cost-effective and straightforward, without a built-in savings plan.
- Cash value insurance is lifetime coverage that is pricier due to its savings component.
Misconceptions in Insurance
- The common belief that life insurance needs are permanent is misleading; needs can change.
- Sound financial planning can lead to becoming self-insured over time through savings and investing.
Specific Insurance Types
- Credit life/disability insurance helps pay off debts if something happens to the borrower.
- Credit card protection is unnecessary and should be avoided.
- Cancer and hospital indemnity insurance cover specific medical issues, which are often redundant with regular health insurance.
- Accidental death and burial policies are typically redundant as term life insurance covers these needs.
Avoiding Overlap in Coverage
- Prepaid burial policies are a poor investment compared to money placed in other investment vehicles.
- Mortgage life insurance is usually unnecessary since term life coverage suffices.
- Duplication in coverage can lead to complications; only one policy per insurance type is needed to avoid issues in claims processing.
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Description
This quiz covers essential concepts of insurance, including the importance of investing in various types of policies like homeowners and renters insurance. It also discusses how insurance can protect assets and reduce financial risks. Understanding these principles empowers consumers to make informed financial decisions.
