Insurance
what does insurance do?
Protect from potential loss
what does credit do?
gets goods and services now and pay later
what are the levels of risk?
aggressive, moderate, and conservative
what is bodily injury liability
pays for medical expenses, lost wages, and legal fees
what does diversity mean?
not investing everything you have in 1 area
What is a premium?
set amount paid by the insurance to have an insurance policy
what are the 2 types of credit
1. credit cards
2. installment credit
What does IRA mean?
individual retirement account. retirement funds that are set aside a portion of your income each year
what is homeowners insurance?
loss of or damage to home, property, or belongings
what does investing do?
buying assets that increase in value over time and provide returns in the form of income payments or capital gains
who is the policy holder?
the person buying the insurance
what is a credit card
used to purchases goods and services, issued by stores, banks and business, and comes with a credit limit
what is mutual funds?
funds that are collect from many investors and allow you to purchase stock
what is co-insurance?
patient is responsible for 15% while company is responsible for 85%
what is common stock?
voting privileges and offers dividends
what are the 4 types of insurance?
life, health, car, and house
what is installment credit?
allows you to buy expensive items with a monthly payment
what is Roth?
where deposits are made and post tax and grow in the account tax free
what is the purpose of life insurance?
provide financial support to family members at the time of your death
what is preferred stock?
what do you agree to when buying insurance?
premium to avoid higher cost paid monthly
what is the difference between secured and unsecured?
secured is a prepaid credit card by putting a security deposit on it with a limit, unsecured doesn't have to be backed by a deposit
what are the 5 risk factors?
1. your risk tolerance
2. interest rate
3. domestic and international economic conditions
4. taxes and inflation
5. length of time
what is unemployment insurance?
government relief program for those who have income due to losing their jobs
what is the difference between offered dividends and fixed dividends?
offers dividends means you can raise and lower it will company profit. fixed dividends means the pay out with not change