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Chapter 9 Insurance
Terms in this set (35)
Which of the following statements about long-term care insurance is false?
You should not buy long-term care insurance until age 30.
Amount you must pay before you begin receiving any benefits from your insurance company.
Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure.
Renter's insurance is not necessary if you don't have a lot of expensive things.
Describes the type of coverage in an insurance agreement.
You are involved in a two-car accident in which you are at fault. The other driver is injured and
your insurance covers the medical expenses of the victim. This type of insurance coverage is
Disability insurance offered through your employer is usually the most expensive coverage option.
Duplicate coverage, or any extra insurance on top of your existing insurance, is not necessary.
Life insurance policy for a specific period of time is called:
Which of the following is true?
Any kind of duplicate insurance coverage is a bad idea.
Which of the following is not a benefit of having a will?
You only need a will if you have a large estate.
A person becomes self-insured when:
Their kids are grown, they have no debt, and they have fully funded retirement.
Which of the following policies would be a duplicate coverage for your health insurance policy?
Cancer and hospital indemnity insurance
Applies to the amount of protection you have through an insurance company in the event of a loss.
Prepaid burial policies are a good idea.
Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance.
Following the Five Foundations will help you to, one day, become self-insured.
Which of the following types of insurance is not recommended for a young single adult.
Which of the following is not a recommended way to save on your health insurance premium?
If you are young and healthy, you do not need health insurance.
The recipient of assets passed on from the death of a friend or relative.
Specific amount of money that you pay when insurance only covers a portion of costs.
Out of pocket expense
A legally enforceable declaration of how a person wishes his or her property to be distributed after death.
You should not buy identity theft protection that only provides credit report monitoring.
Any insurance with cash value or that combines insurance with investments is a bad idea.
An amount of money you pay to help cover a portion of your medical costs.
Comprehensive coverage takes care of damage to your car that is not caused by a collision.
The purpose of insurance is to:
Transfer financial risk
Insurance that covers property damage and medical bills if you are at fault in a car accident or if someone gets injured on your property.
Good identity theft protection includes restoration services.
After high school, you should have the following types of insurance: auto, renterʹs, health and
long-term care insurance.
Which of the following statements about life insurance is true?
Cash value insurance is normally for life and is more expensive than term life insurance
because it funds a savings plan.
The time between the disabling event and the beginning of payments in your disability coverage
Which of the following is not a recommended way of lowering your car insurance premiums?
Drop your auto insurance altogether.
Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a fully funded emergency fund of $500 or more?
You lose your cell phone.
Which of the following statements about disability insurance is false?
Disability insurance is not necessary if you have a good health insurance policy.
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