Consumer Economics Chapter 9

another? thanks, dave

Insurance helps you transfer the _ from your bank account to the insurance company.

risk

Life insurance guarantees your loved ones get a certain amount of money when you _.

pass away

This type of home insurance covers the structure of your home.

dwelling insurance

If you're young and healthy, medical insurance is not as necessary.

false

_ will provide money to replace lost income for years—even up to retirement.

long-term disability

In return for paying the insurance company a fee, they will . . .

pay for certain expenses or damages

Comprehensive coverage pays for loss or damage to your car caused by _.

anything other than a collision

If you're unable to live in your home while it's being repaired, _ coverage will cover those additional living expenses.

Loss of use

Through the Affordable Care Act, you can stay on your parents' health insurance until . . .

26 years old

The purpose of life insurance is to replace your ___ when you die.

income

Own occupation disability insurance will pay you if you . . .

can't do the job you were educated to do

The amount of money the insurance company agrees to pay for an incident is called ___.

coverage

What type of insurance pays for the treatment of injuries and losses to the driver and passengers?

personal injury protection

Homeowner's insurance costs are in states that are more susceptible to hurricanes, floods or tornadoes.

higher

Medicare and Medicaid are examples of . . .

Government programs for public health insurance

Don't get sucked into the __ scam.

whole life insurance

Disability insurance isn't intended to make you ____ but to ____ when you need it.

rich; pay your bills

Most insurance companies allow a _, during which you can pay your premium before you lose your coverage.

grace period

Your _ has all the information you'd need in case of an accident.

insurance card

Renter's insurance will cover you and your belongings if there is ever a fire, theft, or vandalism.

true

A high-deductible health plan with lower monthly premiums is a good option for ___.

young healthy people

People who rely on you financially are called your _.

dependents

will cover you if someone steals your personal information.

identity theft protection

What is a deductible?

The amount you have to pay before the insurance company will make a payment.

Getting good grades, driving safely, and driving an older car are examples of ways you can. . .

lower your auto insurance costs

Umbrella insurance is coverage for . . .

Things that fall outside of your home and auto insurance policies

The cap on the total amount of benefits you can get from your insurance company is called ___.

lifetime limit

Insurance companies look at to determine the cost of your premium.

life expectancy charts, your weight, your age, your hobbies and whether you smoke

You need long-term care insurance before you turn 60 years old.

false

It’s wise to have _ because even if you’re a great driver, there are plenty of people who aren’t.

Liability insurance

How does an HSA work?

They allow pretax and tax-free withdrawals to pay for out-of-pocket medical expenses. The unused balance carries over year to year, and can be investing and grow interest over time.

How does uninsured motorist insurance protect you in case of an accident?

It protects you if the other driver does not have any or enough auto insurance to pay for damages or injury.

Who actually needs life insurance?

Anyone who has people depending on them financially

Premium vs Deductible

Premiums are regular payments to maintain coverage.

Deductibles are the amount you must pay for the services before the insurance company will start paying. Higher premium for lower deductibles and vice versa.

Commonly covered vs not commonly covered under homeowner

Covered: hail, fires, windstorms

Not commonly covered: earthquakes, hurricanes