Insurance Basics
What is the main purpose of insurance?
To protect you from financial loss you can’t afford on your own.
How much coverage does full SGLI give you?
$500,000.
What kind of coverage is required by law?
Liability coverage.
True or False: You don’t need renter’s insurance in the barracks.
False – your stuff is not fully covered.
Should you shop around before buying insurance?
Yes! Rates and coverage vary a lot.
What does it mean to “transfer risk”?
Paying a company to take on a big financial risk in exchange for a small premium.
What is the monthly cost of full SGLI
$31
What does collision insurance cover?
Damage to your car if you're at fault in an accident.
How much does renter’s insurance usually cost per month?
10–$25.
If your car is worth less than $2,000, should you pay for full coverage?
Usually not – liability may be enough.
What’s one example of “avoiding” a risk?
Not buying a motorcycle to avoid accident risk.
What does TSGLI stand for?
Traumatic Servicemembers Group Life Insurance.
What’s one way to save money on car insurance?
Increase your deductible (if you have savings to cover it).
What’s the difference between replacement cost and actual cash value?
Replacement = full value to replace the item. Cash value = what it’s worth now.
What’s a way to lower your insurance cost and still be smart?
Bundle policies (auto + renter’s), or ask about discounts.
What’s the difference between needing insurance and wanting it?
You need insurance when a financial loss would seriously affect your life. You might want extra coverage for peace of mind—but the goal is to cover what you can’t afford to lose.
True or False: SGLI builds cash value over time.
False – it’s term insurance with no cash value.
What is uninsured/underinsured motorist coverage for?
If the other driver doesn’t have enough (or any) insurance.
What should you do to prove what you owned in case of a fire?
Take photos or video and keep a list in a safe place.
True or False: You should always get the lowest deductible possible.
False – low deductibles cost more in monthly premiums. (really just be comfortable with the cost)
True or False: Insurance is only for people with a lot of money.
False – insurance protects your future money, not just what you have now.
Who needs more life insurance: someone with kids or a single Sailor?
Someone with kids – to protect their financial future.
What do the numbers in “100/300/50” mean?
$100k per person, $300k per accident, $50k property damage.
What’s a “rider” on a renter’s policy?
Extra coverage for high-value items like jewelry or gaming computer.
What’s one reason you might keep insurance even while deployed?
To avoid a coverage gap and higher rates later.