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