EPF Unit 7 Protecting Your Empire

This set of vocabulary flashcards covers financial and legal terminology including insurance policies, retirement accounts, and estate planning documentation as detailed in the lecture transcript.

Premium

An amount to be paid for an insurance policy.

Deductible

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

Tenant

A person who rents the property.

liability insurance

insurance that provides protection from claims arising from injuries or damage to other people or property.

Umbrella Policy

Insurance that provides additional liability protection beyond that in an automobile or homeowner's policy.

Subsidy

government payment to encourage or protect a certain economic activity.

HMOs (Health Maintenance Organization)

a network of providers for which costs are covered inside but not outside the network.

POS (Point of Service Plan)

Managed care product that offers enrollees a choice among options when they need medical services, rather than when they enroll in the plan. Enrollees may use providers outside the managed care network, but usually at higher cost.

PPO (Preferred Provider Organization)

a type of health insurance plan in which a company forms a contract with certain hospitals and doctors to provide health care at a reduced rate.

PCP (Primary Care Provider)

Doctor who acts as the Gatekeeper by controlling patient access to specialists and diagnostic testing.

Preauthorization

prior authorization from a payer for services to be provided.

copay

an out-of-pocket fee paid by a person with health insurance at the time a covered service, such as an office visit or a prescription, is received.

Out-of-pocket expense

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

disability insurance

A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time.

pet insurance

This protects the owners of pets against some or all of the expenses associated with treating ill or injured pets, i.e. vets' fees.

beneficiary

one who benefits from something; a person who is left money or other property in a will or the like.

basic life group insurance

life insurance policy offered by employers that covers workers, generally a small policy.

Guaranteed Issue

insured does not have to take a physical or answer health questions to attain insurance.

Term Life Insurance

Insurance that provides financial protection from losses resulting from a death during a definite period, or term.

Whole Life Insurance

Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be.

Universal Life Insurance

permanent cash-value insurance that combines term insurance (death benefits) with a tax-sheltered savings/investment account that pays interest, usually at competitive money market rates.

Final Expense Insurance

Final expense insurance covers the cost of anything associated with your death and funeral.

pension

employee benefit that commits the employer to make regular contributions to a pool of money set aside to fund payments made to eligible employees after they retire.

Social Security

federal program of disability and retirement benefits that covers most working people.

401(k) plan

A defined contribution plan that automatically takes out money from an employee's paycheck before income taxes and invests it in mutual funds for purposes of retirement savings.

Vesting

Process by which a retirement benefit becomes nonforfeitable.

IRA

individual retirement arrangement/account.

Mutual Funds

A pool of money used by a company to purchase a variety of stocks, bonds or money market instruments. Provides diversification and professional management for investors.

COLA

cost of living adjustment, added to benefits like Social Security from time to time.

will

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

probate

The process of proving in court that the will of someone who has died is valid, and of administering the estate of a dead person.

testator

a person who makes a will.

Executor

person designated to carryout the terms of a will.

decedant

The person who died.

holographic will

A will written entirely by the testator with his own hand.

nuncupative will

oral will declared or dictated by testator during last illness before appropriate witnesses to dispose of personal property and afterwards reduced to writing (not valid in all states).

living will

A document that indicates what medical intervention an individual wants if he or she becomes incapable of expressing those wishes.