Insurance 101
What is the purpose of insurance?
What is to reduce financial uncertainty and protect against financial loss
What does health insurance pay for?
What is medical treatment, drugs, and preventative check-ups.
What is auto insurance?
a contract between you and the insurance that protects you against financial loss in the event of an accident or theft of a vehicle.
What is renters insurance?
What is an insurance policy that provides coverage to help protect renters living in a house or apartment
What is provides a cash sum to your loved ones that die during the length of the policy.
The amount of money an individual or business pays for an insurance policy is called?
What is a Insurance Premium
What is a copay?
a fixed dollar amount a patient pays for a specific healthcare service at the time of receiving care. It's a cost-sharing mechanism where the patient and their insurance company split the bill for the service
Factors that affect the monthly rate of auto insurance?
credit score, age, gender, driving record, etc.,
What does renters insurance not cover?
What is the structure or dwelling with exception of small alterations that a tenant makes to the structure.
What are some benefits of having life insurances?
What is income replacement for years of lost salary, paying off your home mortage, paying off any debts, and providing funds for your kids' college education
What is a deductible?
What is the amount you pay for health care services before your health insurance begins to pay.
Good things about health insurance?
What is health insurance makes treatment less expensive, preventive care helps you stay healthy,you may qualify for financial help and avoid penalties, and a peace of mind
What demographic typically has the highest auto insurance prices?
young men, ages 16-25
What is the point of renters insurance?
What helps you repair or replace property after loss due to many types of damage theft
What is the difference between term life insurance and whole life insurance?
Term life insurance only provides for a set period, 10,20 or 30 years. If you die during the term, your beneficiaries can receive the death benefit. But if you outlive the term, the insurance ends. Whole life insurance never ends
how are insurance premiums and deductibles generally related?
the higher a plan's deductible, the lower the premium, and vice versa
What is type of plan and provider network, premiums, deductibles, co-pay or coinsurance, and coverage of medicine.
Is auto insurance mandatory?
Yes, it is illegal to drive a car without insurance in the state of Kentucky(and most states)
What type of things can renter insurance cover?
What things should you know before getting life insurance?
What is insurance needs, how much coverage you need, your current life insurance policy, compare the different kinds of insurance policies, be sure you can afford the premium payments, and etc.
What factors affect your monthly auto insurance rate?
What is your car price and performance, your driving habits, demographic factors and the coverages, limits and deductibles you choose.
What factors affect your monthly health insurance?
What is age, gender, health, smoking, driving record, and family medical record
What are different types of auto insurance?
The main types of car insurance include liability, collision, and comprehensive coverage. Liability covers injuries or property damage you cause to others, while collision and comprehensive cover damage to your own vehicle. Other important types include uninsured/underinsured motorist, medical payments, and personal injury protection.
Explain a scenario where renters insurance could be used and what it would cover
answers vary
True or false: All benefit amount from life insurance have to be taxed.
What is false, life insurance isn't inclusive in gross income and you don't have to report them. However, any interest you receive is a taxable and you should report it as interest received.