Financial Literacy Ch 9 cards

Insurance

A financial product that when purchased provides reimbursement paid to a person in the event of certain types of financial loss

Health Insurance

Covers medical expenses, including doctor visits, hospital stays, and prescription medications.

Life Insurance

Provides financial support to beneficiaries upon the policyholder's death. It can be term or whole life insurance.

Auto Insurance

Covers damages and liabilities related to vehicle accidents. It typically includes liability, collision, and comprehensive coverage.

Homeowners Insurance

Protects against damage to a home and its contents, as well as liability for accidents that occur on the property.

Premium

Regular payments paid to an insurance company in return for insurance coverage

Deductible

The amount of money a policyholder pays prior to the insurance company’s payment

Claim

A formal request made to an insurance company by a policyholder asking for payment or coverage for a loss or damage that is covered by their insurance policy.

Disability insurance

Provides regular payments to replace lost income in the event injury or illness makes it impossible to work

Long-term care insurance

Covers expenses for those in rehabilitation centers or nursing homes

Life insurance

An insurance plan that pays a specific person or persons when the policyholder dies

Coinsurance

The share of costs for covered services that the insured person is required to pay out of his or her pocket

Group plans

Insurance plans that cover a large group of individuals

Policyholder

A person who buys a health insurance policy or subscribes to it through an employer