Introduction to Insurance and Financial Protection
This is the monthly or yearly fee you pay to keep an insurance policy active.
What is a premium?
In the simplest terms, this is financial protection against losses.
What is insurance?
The general term for the chance of losing money or facing financial harm due to unexpected events.
What is financial risk?
This scam involves buying an insurance policy that turns out not to exist.
What is a phantom policy?
This fixed fee is commonly paid for services like doctor visits and prescription medications.
What is a copay?
This is the amount you must pay before your insurance company begins covering a claim.
What is a deductible?
The four most common types of insurance discussed in the video include health, life, property, and ______.
What is auto insurance?
The risk that prices rise over time, causing the overall purchasing power of your money to decrease.
What is inflation?
Ghost brokers often attract buyers by advertising policies at these prices.
What are incredibly low prices?
This is the formal request you submit to an insurance company asking for payment after a loss.
What is a claim?
This term describes the maximum amount an insurance company will pay for a claim.
What is a policy limit?
This type of insurance helps pay for medical and surgical expenses.
What is health insurance?
Two personal life events mentioned in the video that can suddenly cause a complete loss of income.
What are job loss and illness (or injury)?
This type of scam pressures customers into buying coverage they don't actually need.
What is the unnecessary add-on scam?
This type remains in effect for the insured's entire life as long as premiums are paid.
What is permanent life insurance?
This happens to your monthly premium when you choose to raise your deductible.
What is decreasing?
This type of life insurance provides coverage for a specific number of years.
What is term life insurance?
Unlike health or property damage, broad economic events like market crashes and inflation fall into this category of risks.
What are uninsurable (or non-transferable) risks?
Being asked to pay premiums in cash or to a personal account is a warning sign of this scam.
What is premium diversion?
Agents may use this emotion to convince customers to purchase unnecessary insurance add-ons.
What is fear?
These 4 insurance policies aren't for everyone—you only get them based on specific needs like having dependents, turning 60, having a high net worth, or fearing fraud.
What are term life, long-term care, umbrella insurance, and identity theft protection?
This type of insurance covers legal costs and damages if you are found responsible for causing harm.
What is liability insurance?
The financial strategy of absorbing a risk yourself by using savings rather than transferring it to an insurance company.
What is risk retention (or self-insuring)?
Fake claims can damage your insurance record and this financial measure.
What is your credit score?
This specific provision in health insurance sets the absolute most YOU will have to pay in a single year.
What is the out-of-pocket maximum?