VOCABULARY
What do we call the contract between you and the insurance company?
POLICY
True or False: You need car insurance to drive legally in most states
TRUE
What does homeowners insurance protect?
your home and the items inside it
What is umbrella insurance for?
extra protection beyond your other insurance limits
What does health insurance help pay for?
doctor visits, medicine, or hospital care
What’s the monthly amount you pay to keep your insurance?
a premium
What kind of damage can auto insurance cover besides accidents? (Name 2)
theft and weather damage
What is one major difference between homeowners and renters insurance
Renters insurance doesn’t cover the building
Who might need long-term care insurance?
an elderly person or someone who needs daily help
What is a copay?
a small payment you make each time you get care
What is the money you must pay before your insurance helps?
a deductible
What happens if you don’t pay your premium on time?
You may lose coverage, unless there's a grace period
Name one situation where renters insurance would help
a theft or fire that damages your stuff?
If your car insurance only pays $50,000 but you owe $100,000 after a crash, how can umbrella insurance help?
pay the extra $50,000 that your car insurance doesn’t cove
What is the main purpose of life insurance?
to help your family with money if you die
What is it called when you ask the INSURANCE company for help after a loss?
A CLAIM
You hit someone else’s car and it’s your fault. What part of your auto insurance helps pay for their damage?
liability coverage
What is liability coverage in home insurance?
if someone is hurt at your home
Why is umbrella insurance helpful for people with big houses or expensive cars?
They might get sued for more money, and umbrella insurance gives more protection.
What’s the difference between term life and long-term care insurance?
Term life gives money to your family; long-term care pays for your care.
What is the maximum you might pay on your own in a year, even with insurance?
out-of-pocket maximum
Explain the difference between filing a claim and paying a deductible?
A claim is asking for help; a deductible is the money you pay before help starts
True or False: If your TV is stolen during a break-in, homeowners insurance can help replace it
TRUE
Why might someone who already has auto and home insurance still choose to buy umbrella insurance?
big accidents can cost more than basic insurance will pay.
A person is young and healthy. Why should they still buy health or life insurance?
Because emergencies can happen anytime, and insurance helps protect you and your family.