Key Terms
7. This is the amount you pay out of pocket before your insurance starts covering expenses.
Deductible
11. Your monthly premium is $120. How much will you pay in a year?
$1,440
12. This insurance helps pay for doctor visits, hospital stays, and prescriptions.
Health insurance
6. A young adult renting their first apartment.
Renters insurance
4. This is the regular payment you make to keep your insurance policy active.
Premium
14. If an insurance policy has a $100,000 coverage limit but your accident costs $120,000, how much will you pay yourself?
$20,000
9. This insurance pays your family money if you die.
Life insurance
20. A parent with young children who wants to make sure their family is financially secure if something happens to them.
Life insurance
1. This is a document that outlines the terms, coverage, and conditions of an insurance agreement.
Policy
8. If your insurance covers 80% of a $10,000 hospital bill, how much do you owe?
$2,000
10. This insurance helps cover your belongings if they are stolen from your apartment.
Renters insurance
16. A person worried about paying expensive hospital bills.
Health insurance
15. This is a formal request to an insurance company asking for a payment based on the terms of the policy.
Claim
17. If you have a $500 deductible and $2,000 in damages, how much will insurance pay?
$1,500
18. This type of insurance replaces a portion of your income if you are unable to work due to injury or illness.
Disability insurance
2. A car owner who drives frequently and wants protection if they cause an accident.
Auto liability insurance
13. This is the amount of time you must wait after becoming disabled before receiving disability benefits.
Elimination period
3. You cause a car accident with $5,000 in damages. Your liability insurance covers up to $10,000. How much do you pay out of pocket?
$0
5. This type of auto insurance covers damage to your own car from things like theft, fire, or vandalism — even if you weren’t driving when it happened.
Comprehensive insurance
19. A worker who relies heavily on their paycheck and would struggle to pay bills if they got seriously injured or sick.
Disability insurance