The Basics
of insurance
of insurance
This is the waiting period between an injury and when payments begin.
the elimination period
Coinsurance payments apply only before you have met your annual deductible.
What is False? (Coinsurance applies after)
a contract between an individual and an insurer where the insurer promises to pay a designated beneficiary a sum of money
Life insurance
Protects personal property and provides liability coverage for injury or damage to others' property
Homeowners insurance
If your deductible is $1000 and you $5000 claim how much do you have to pay
you pay $1000 , and the insurer covers the $5000 remaining .
This is the typical percentage of income replaced by long-term disability insurance.
60% (or 50-70%)?
A deductible is the amount of money an insured individual must pay before their insurance company starts to pay for covered services.
True
set amount of money you pay out-of-pocket for covered services, such as medical care or auto repairs,
A deductible
Mandatory in most places, covering liability for bodily injury, property damage, and vehicle damage from accidents or theft
Automobile insurance-
If your deductible is $2000 and you $8000 claim how much do you have to pay
you pay $2000 , and the insurer covers the $6000 remaining .
The amount you pay to keep your insurance policy active.
Premium
Disability insurance policies almost always cover pre-existing conditions from day one.
False. Pre-existing conditions are often excluded or subject to a waiting period
The primary purpose of this type of insurance is to replace a portion of your income if you are ill or injured and cannot work.
disbailty
A formal request to the insurer for payment after a loss
claim
If your deductible is $15,000 and you have a $300,000 claim how much would your insurer pay
$285,000
the difference between Term Life and Whole Life insurance
Term Life Provides coverage for a limited time
Whole Life Permanent protection with a cash value component
If someone else wrecks my car, their insurance covers it.
False. Generally, insurance follows the car, not the driver. Your insurance is usually primary, though there are exceptions
a type of cost-sharing in insurance where you pay a percentage of a covered service's cost
Coinsurance
An amount to be paid for an insurance policy
Premiums
if your deductible is $1,000 and the repair cost is $800, you pay the full $800 how much does your insurer pay
the insurer pays $0.
Does my credit score affect my premium?
yes or no
Yes, in many states, a higher credit score can result in lower premiums
An irrevocable beneficiary can be changed at any time.
a person, entity (like a charity), or estate legally designated to receive the policy's proceeds—typically the death benefit—when the insured person passes away.
A beneficiary
A contract between you and a insurance company where the insurer pays for part of all your medical cost
Health Insurance
How much does the health insurance company pay if a person has a $160 office bill and an annual deductible of $250.00 (none of which has been met thus far this calendar year)
$160.00
The health insurance would pay nothing since none of the deductible has been met. The patient would be responsible for paying $160.