Describes The Type Of Coverage In An Insurance Agreement

Question: This is not recommended to save on your health insurance premium.

Answer: Not having insurance because you are young and healthy.

Question: This is not recommended to lower your car insurance.

Answer: Dropping your car insurance altogether.

Question: This is not recommended for a young single adult.

Answer: Life insurance.

Question: Insurance is not needed for _______________ if you have a full emergency fund of $500.00 or more, because it is not a huge financial risk.

Answer: Losing your cell phone.

Question: The purpose of insurance is to:

Answer: Transfer risk.

Question: Life insurance policy for a specific period of time is called?

Answer: Term.

Question: The time between the disabling event and the beginning of payments in your disability coverage is called.

Answer: Elimination period.

Question: A person becomes self insured when?

Answer: Their kids are grown, they have no debt, and they have fully funded retirement.

Question: You are involved in a two-car addicent 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 caused:

Answer: Collision.

Question: Which of the following policies would be a duplicate coverage for your health insurance policy.

Answer: Cancer and hospital indemnity insurance.

Question: The receipt of assets passed on from the death of a friend or relative.

Answer: Beneficiary.

Question: Describes the type of coverage in an insurance agreement.

Answer: Policy.

Question: An amount of money you will pay to help cover a portion of your medical costs.

Answer: Co-payment.

Question: Paperwork filed with an insurance company in order to get them to cover a loss for someone they insure.

Answer: Claim.

Question: Amount you must pay before you begin receiving any benefits from your insurance company.

Answer: Deductible.

Question: Insurance that covers property damage and medical bills if you are at fault in a car accident or if someone gets hurt on your property.

Answer: Liability.

Question: Applies to the amount of protection you have through an insurance company in the event of a loss.

Answer: Coverage.

Question: A legally enforceable declaration of how a person wishes his or her property to be distributed after death.

Answer: Will.

Question: The amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance.

Answer: Premium.

Question: Specific amount of money that you pay when insurance only covers a portion of costs.

Answer: Out-of-pocket expense