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?
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What is liability insurance?
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What is insurance?
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What is in it for the insurance company?
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What is an insurance premium?
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What factors can increase car insurance premium?
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What does collision insurance cover?
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What does comprehensive insurance cover?
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What is liability insurance?
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What does uninsured coverage do?
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What is the deductible?
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What is renters insurance?
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What is health insurance?
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What does disability insurance do?
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What does life insurance help with?
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What should you remember about the total cost of insurance?
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What should you consider when choosing health insurance?
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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.
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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.