Insurance Basics
What is a premium?
Money paid for an insurance policy.
What does health insurance help pay for?
Medical expenses.
What does collision insurance cover?
Repairs to your car after an accident.
What does disability insurance provide?
Income if someone cannot work because of a disability.
What happens when life insurance pays out?
Money goes to the beneficiaries after the insured person dies.
What is a deductible?
Money paid before insurance starts paying.
What is a copay?
A fixed amount paid for a medical service.
What does comprehensive insurance cover?
Theft, fire, floods, vandalism, and animal damage.
What government program provides disability assistance?
Social Security.
Which usually has lower premiums, whole life or term life?
Term life.
What is an out-of-pocket maximum?
The most you pay for covered services in a year.
What is an in-network provider?
A healthcare provider who works with your insurance.
What does PIP stand for?
Personal Injury Protection.
How long must a disability generally last to qualify for Social Security disability benefits?
12 months or more.
What is one benefit of whole-life insurance?
It builds cash value and lasts a lifetime.
Name two types of insurance.
Auto, home, health, or life insurance.
Which usually costs less, in-network or out-of-network?
In-network.
What are the three main types of basic Michigan no-fault insurance?
PIP, PPI, and Residual Liability.
What is an elimination period?
The waiting period before benefits begin.
Name three things covered by renters insurance.
Electronics, clothing, furniture, or appliances.
What is the difference between whole life and term life?
Whole life lasts a lifetime, while term life lasts for a set time.
If your deductible is $2,000, how much must you pay before insurance starts paying?
$2,000.
Name two additional auto insurance coverages.
Rental car and roadside assistance.
What are the three factors that affect private disability insurance premiums?
Elimination period, benefit period, and strictness.
What does loss-of-use coverage pay for?
Hotels, food, and other expenses if you cannot live in your home.