Insurance
What is insurance?
Provides protection against financial loss from specific risks
Which type of insurance covers medical expenses?
Health
Which type of insurance is typically required by law for drivers?
Auto
Which type of insurance can be used as part of estate planning?
Life Insurance
What does liability insurance cover?
Legal claims for bodily injury and property damage to others
Which type of insurance provides coverage for personal property and liability for individuals renting a home or apartment?
Renters Insurance
What is the purpose of preventive care coverage in health insurance?
To reduce long-term healthcare costs by covering preventive services
What is the primary purpose of flood insurance?
Provide coverage for damage caused by flooding
Which type of insurance covers the cost of legal claims for injuries or damages occurring on rented property?
Renters
Which type of insurance is required by most mortgage lenders?
Homeowners
Which type of insurance provides income replacement if the policyholder is unable to work due to illness or injury?
Disability
What is the main benefit of having health insurance
Access to medical care and financial protection
What is the benefit of using replacement cost coverage in homeowners insurance?
It pays for the full cost of repairing or replacing damaged property
What is the main advantage of using business insurance?
To protects businesses from financial losses
What is the primary purpose of risk management in personal finance?
Provide financial protection & reduce the impact of unforeseen events
What is the primary advantage of bundling multiple insurance policies with one provider?
Streamlined management and potential discounts
What is a key feature of a high-deductible health plan (HDHP)?
Low premiums and higher out-of-pocket costs
What is the benefit of having uninsured/underinsured motorist coverage in auto insurance?
It protects drivers with insufficient insurance
What is the primary benefit of using life insurance for estate planning?
It provides liquidity to cover estate taxes and other expenses
What does an umbrella liability policy provide?
Additional liability coverage beyond standard policy limits
What is risk transfer in the context of insurance?
Transferring financial risk from the individual to the insurance company
What is an advanced strategy for integrating insurance into financial planning?
Conducting an assessment of risks and customizing policies.
What is a primary benefit of umbrella liability insurance?
Provide protection beyond the standard liability policies
Which type of insurance typically includes coverage for theft, vandalism, and natural disasters?
Comprehensive
What is a key feature of whole life insurance?
Coverage with a cash value component that grows over time