Insurance Vocab 1
Financial Product Purchased by people in a similar situation
Insurance
Why should you have insurance?
To manage risk
The risks covered in an insurance policy
Coverage
What is a benefit of Term life insuance?
Cheap
Contract between insurance company and the insured
Policy
How much should you have in emergancy savings to complement insurance?
3-6 months worth of expenses
Money paid to purchase a policy (monthly payment)
Premium
What is a benefit of whole life insurance?
Gurantees pay out
Fixed percentage of the cost after the deductible
Co-Insurance
If you are a young and healthy person, what type of insurance policy would you be looking for?
Low Premium Plan
Formal request to an insurance company for payment
Claim
Insurance for low-income families
Medicaid
Someone who receives money in an insured person dies
Beneficiary
What are HSA and FSA accounts for?
Tax free money for health care
Out-of-pocket by policyholder before insurance company will pay
Deductible
Payment to replace earnings when you cant work because of injury
Disability insurance
Percentage of total average costs for covered benefits
What do medals represent with health insurance plans?
Actuarial Value
Payment for extended nursing care stay
Long term care insurance
What are the 3 most common places people get health insurance through?
Medicaid, Health care marketplace, employee-sponsored