Insurance Basics
Insurance purchased by vehicle owners to protect against financial loss in the event of an accident or theft.
Auto insurance
Insurance that pays out a lump sum of money to beneficiaries upon the death of the insured person, or after a set period of time (depending on the policy type).
Life insurance
A form of financial aid for college that does not need to be repaid.
Grant
An undergraduate academic degree usually completed in 2 years at a community college or university.
Associate degree
Coverage that helps pay for another person’s medical care and emergency services if the insured driver causes an accident.
Bodily injury liability
Coverage that protects an insured person’s home, property, and personal belongings against damage or loss.
Homeowners Insurance
A federal grant awarded to undergraduate students with exceptional financial need who have not yet earned a bachelor’s, graduate, or professional degree
Pell Grant
A degree given to a study by a college or university, typically after 4 years of study.
Bachelor Degree
Auto insurance coverage that helps repair or replace the insured person’s car if it is damaged in a collision with another vehicle or object.
Collision insurance
The amount of money someone pays (monthly, quarterly, or semi-annually—standard is 6 months) to maintain an insurance policy
Policy premium
Financial aid awarded based on academic achievement, talent, or financial need, which does not need to be repaid.
Scholarship
The educational outcome achieved per dollar spent on education. For college, this means estimating how much a college degree costs versus your earning potential over time.
Return on investment (ROI)
Optional auto insurance coverage that protects against damage to a vehicle caused by something other than a collision (e.g., fire, theft, vandalism, or natural disasters).
Comprehensive insurance
Coverage that protects a renter’s personal belongings against damage, destruction, or theft due to unexpected events.
Renters Insurance
Money borrowed to help pay for education, which must be repaid with interest
Student Loans
A university that offers higher education programs through the Internet.
Online university
The amount an insured person must pay before the insurance company begins covering costs on a claim.
Deductible
Coverage that provides 40–70% of a person’s income if they cannot work due to illness or injury, typically for a limited period of time.
Short-term disability insurance
An application that determines a student’s eligibility for need-based federal financial aid.
Free Application for Federal Student Aid - FASFA
A program that provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay for their expenses.
Work-study program