Insurance Termanology
What is the purpose of Insurance?
To protect yourself from financial risks.
What is risk management?
Involves identifying, assessing, and mitigating risk.
What does health insurance cover?
Financial losses resulting from injury, illness, and disability.
What does liability insurance cover?
Injuries or damages caused to other people or there property.
What is life insurance?
A contract specifying a sum to be paid to a beneificiary upon the insured persons death.
What is a Claim?
Notification to the insurance company that a loss has occured in a demand of payment for the loss, as provided in the terms of the insurance policy.
How does your health history impact the cost of life insurance?
The longer your health history is, the higher the monthly premium you will pay to be covered for life insurance.
Give 2 examples of expenses health insurance will cover.
Surgery, prescriptions, physicals/doctor visits, hospital, therapy, long term care, etc.
What is collision insurance?
Physical damage insurance that covers damages to the vehicle by an object car or roll over.
Give one example of a company that offers life insurance.
Progressive, prudential, metlife, aflac, etc.
How do you keep your insurance intact?
Pay a company a small monthly payment, called a premium.
How does age affect the cost of car insurance?
The way the insurance company sees it is that the older you are the more responsiblity you have and the less likely you are to get in an accident, lowering your monthly premium.
What are out of pocket expenses?
Medical care expenses that are not covered by your health insurance plan.
What is one example of what comprehensive car insurance will cover?
Ex: Theft, Vandalism, Natural Disasters, ETC.
What is a dependent?
A person who relies on someone else financially.
What is a deductible?
A portion of a covered loss that is not payed by the insurer.
Give one example of loss prevention and reduction?
Ex: create a security policy, use cctv throughout your store/property, investing in inventory management, put out anti theft signs.
What is the main requirement to qualify for Medicare?
You must be 65 Years or older. With the exceptions of certain conditions and disabilities.
What does medical payment insurance cover?
Injuries sustained by the driver and the passenger regaurdless of fault.
What is a beneificiary?
Recipiants of any policy proceeds.
What is financial Risk?
Condition in which there is a possibility of loss. Also, a term indication the property or person being insured.
What color/color type of car impacts your monlthy premium the greatest?
Bright colors especially Red.
What is the purpose of medicaid?
To support people with low income or limited resources.
What 2 types of car insurance are required by law in South Carolina?
Liability and Uninsured/Underinsured
What is the main difference between ending whole life insurance early and ending variable life insurance early?
If you end whole life insurance early, you may get cash value. If you end term life insurance early, you do not get cash value.