Equity (in Assets)
Define 'Equity'
The value of ownership (how much you own) in an asset
I_______________E:
A financial tool that protects against unexpected losses/events by transferring the risk (to a company, because you have a policy with them)
Insurance
Whats the main difference between:
TERM Life Insurance
and
WHOLE Life Insurance
Term: is for a certain period of time
Whole Life: provides lifetime coverage
This document outlines how a person's assets should be distributed after death
WILL
A person legally appointed to care for a minor child if the parents become unable to do so (because of something that has happened)
Guardian
Owning can lead to having equity in the home (owning part or all of it as an asset)
C________:
A formal 'request' made to an insurance company for payment because of something bad that happened.
Claim
L____________ INSURANCE
What type of auto insurance is:
-required by law in most states
-helps cover the damage you might cause to other people.
-If you get into an accident and it’s your fault, it can help pay for the other driver’s car repairs and medical bills.
LIABILITY INSURANCE
Why would you NOT want to withdraw money out of your cash value of your Life Insurance?
It will reduce the amount of money (death benefit) your beneficiaries receive.
Probate is....the legal process of validating a _______L and distributing a deceased persons' ________S
WILL
ASSETS
If you have valuable assets (equity) in jewelry or art, you should purchase....
purchase extra coverage (supplementary insurance) for those items to be sure they're covered if something happens to them.
_______________M:
the amount of money you pay regularly (like monthly, quarterly, yearly) to an insurance company to have an insurance policy through them
Premium
CO-PAY
In estate planning, someone who inherits money or proerty, that you have named to do so, is called a ____________
Beneficiary
An Insurance ________ is someone who is authorized to act on behalf of another person, in legal or financial matters, because you have a policy with them and their insurance company.
Agent
If you rent a home, one benefit is no responsiblity for...
_____________E:
the amount you MUST PAY OUT OF POCKET, BEFORE your insurance company pays anything (covers a claim)
DEDUCTIBLE
Certain Life Insurance policies have a
_______ V_______,
which means it grows over time and be used for financial needs if necessary.
CASH VALUE
How does a 'healthcare Power of Attorney' help during a medical crisis?
They make medical decisions on your behalf, if you cannot make them because of what happened to you.
Long Term Care Insurance is used to cover health care costs for ___________ individuals or those with long term ___________ who need daily care.
old, elderly
illnesses, diseases, issues, problems
If you have an expensive asset that you own, you should have an I____________ P_________ on it, just in case anything happens.
Insurance Policy
P__________ L_________:
the MAXIMUM amount an insurance company will pay for a covered loss.
Policy Limit
While _______ Insurance covers your belongings AND the property.
RENTERS
HOME
Who is responsible for carrying out the instructions of a Will?
Executor
What is the main purpose of Disability Insurance?
To replace lost income when someone cannot work due to illness or injury