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Chapter 9 - Personal Finance Review
Terms in this set (17)
Specific amount of money that you pay when insurance only covers a portion of costs
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure
Describe the type of coverage in an insurance agreement
Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
Applies to the amount of protection you have through an insurance company in the event of a loss
Amount you must pay before you begin receiving any benefits from your insurance company
The state or quality of being obligated according to law or equity
Raising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision.
Financially, it makes sense to stay on your parents' auto insurance policy through college if possible.
What is not a huge financial risk (and therefore would not require insurance) if you had a full emergency fund of $500 or more?
A lost cell phone
The time between the disabling event and the beginning of payments in your disability coverage is called what?
A life insurance policy that covers a specific period of time is called what?
What does it mean to "transfer risk"?
You pay someone else a small amount of money for security in the case of an emergency
Explain the importance of liability protection.
Covers property and medical if you are at fault in an auto accident
Why should life insurance not be used as an investment?
You should be self-insured at one point
Explain how someone becomes self-insured.
You have a disciplined investment policy, you save, and are debt-free
What are some unnecessary types of insurance? Why are these unnecessary?
Cancer Insurance (health insurance already covers it), Credit Card Insurance (covers theft or abuse), and Pet Insurance