Insurance Terminology Flashcards

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Who pays a deductible?

The policyholder.

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

Insurance

Wearing a seat belt, not texting when driving, and driving carefully are all examples of what?

Risk Management Strategies

Which of the following is not an advantage of having health insurance?

People with health insurance can skip lines in emergency rooms Signup and view all the answers

What is liability insurance?

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident. Signup and view all the answers

What is insurance?

Insurance companies offer policies to protect you from life events that can be expensive. Signup and view all the answers

What is in it for the insurance company?

They spread out their risk over tens of thousands of clients and bet that they will have to pay out less than they earn. Signup and view all the answers

What is an insurance premium?

The monthly payment one must pay to an insurance company. Signup and view all the answers

What factors can increase car insurance premium?

Driving Record, Age, Location, Vehicle, Completion of a driver's education class. Signup and view all the answers

What does collision insurance cover?

It covers the car of the insured person and pays for repairs after an accident or cash compensation if the car can't be repaired. Signup and view all the answers

What does comprehensive insurance cover?

Covers damage to your car that is not from an accident, such as a dented roof from a falling branch. Signup and view all the answers

What is liability insurance?

It pays for the damages and medical costs of the people you hit if you cause an accident. Signup and view all the answers

What does uninsured coverage do?

A policy that pays for repairs in case someone crashes into you and they do not have insurance. Signup and view all the answers

What is the deductible?

The amount you must pay before the insurance company will pay the covered amount. Signup and view all the answers

What is renters insurance?

Can help cover costs to replace personal items that were lost, stolen, or damaged. Signup and view all the answers

What is health insurance?

Without health insurance, you may end up paying more than $10,000 for medical expenses. Signup and view all the answers

What does disability insurance do?

If you are disabled and can't work, disability insurance may pay some or all of your income while you recover. Signup and view all the answers

What does life insurance help with?

Help deal with costs such as funeral expenses and may provide replacement income for family members. Signup and view all the answers

What should you remember about the total cost of insurance?

Insurance plans usually cost more than just the monthly premium. Signup and view all the answers

What should you consider when choosing health insurance?

You should also consider Medicaid, CHIP, state insurance plans, individual health plans, or your parents' health insurance plan if you're under 26. Signup and view all the answers

Study Notes

Insurance Basics

A deductible is an amount paid by the policyholder before the insurance coverage kicks in.
Insurance serves as risk management to protect individuals from significant financial loss due to events affecting them or their property.

Risk Management Strategies

Examples include wearing seat belts, avoiding distractions like texting while driving, and driving cautiously.

Health Insurance Insights

Not an advantage of health insurance: ability to skip lines in emergency rooms.
Lack of health insurance can lead to expenses exceeding $10,000 for medical care, which could be significantly reduced to around $100 with coverage.

Types of Insurance

Liability insurance covers injury and damages in a car accident where the policyholder is at fault.
Collision insurance provides coverage for vehicle repairs or cash compensation post-accident, typically optional.
Comprehensive insurance protects against non-accidental damage, such as from falling objects.
Uninsured coverage pays for damages if an uninsured driver causes an accident.

Insurance Costs and Premiums

An insurance premium is a monthly payment determined by the insurer based on accident likelihood.
Factors affecting car insurance premiums include driving record, age, location, vehicle safety features, and completion of driver's education.

Additional Insurance Types

Disability insurance compensates for lost income while recovering from an inability to work due to disability.
Life insurance helps cover costs like funerals and replaces income for family members after a policyholder's death.

Important Insurance Considerations

Total insurance costs involve monthly premiums, deductibles, co-payments, and coinsurance. An out-of-pocket maximum may apply.
Younger individuals are cautioned to purchase life insurance sooner for better rates before medical conditions arise.

Health Insurance Options

Alternatives for health insurance include employer plans, Medicaid, CHIP, state insurance plans, or individual plans, particularly for those under 26 years old.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore essential insurance vocabulary with these flashcards. Each card presents a key term and its definition, focusing on concepts like deductibles, risk management, and insurance itself. Perfect for anyone looking to boost their knowledge in insurance-related topics.