Know Your Worth
The person designated to receive the payout from a life insurance policy is known as this.
What is a “beneficiary”?
Raising this lowers your premium but increases your out-of-pocket risk.
What is a “deductible”?
A cause of loss such as fire, theft, or a hurricane.
What is “peril”?
This one-to-two-page document at the start of your policy summarizes your coverage limits, deductible, and premium.
What is a "homeowners declaration page"?
This mandatory coverage for business owners is designed to handle claims from employees injured on the job.
What is "worker's compensation"?
This type of life insurance policy may not guarantee a payout, as it lasts for a defined period of time rather than your whole life.
What is “Term life insurance"?
A fixed fee you pay for doctor visits that does NOT count toward your deductible.
What is a “co-pay”?
This principle ensures that insurance restores you financially but does not allow you to profit from a loss.
What is “indemnity”?
This type of auto insurance covers damage to your own vehicle after an accident, regardless of who is at fault.
What is “collision insurance”?
This annuity is basically saying, “I don’t trust the market, just give me the same check every month.”
What is a “Fixed Annuity”?
The savings portion of a whole life insurance policy that accumulates over time.
What is “Cash Value”?
A High Deductible Health Plan may not always be the most appealing option, but it does help qualify you for this type of account.
What is a “Health Savings Account (HSA)”?
In the risk management matrix, this strategy is recommended when a risk has high frequency and high severity.
What is “avoidance”?
This saving strategy is the topic of many insurance commercials from StateFarm, Allstate and Progressive, and involves purchasing home and auto insurance from the same provider for a lower price than if they were purchased separately.
What is “bundling”?
This additional liability coverage for catastrophic legal claims or judgments works with both homeowners and auto coverage.
What is an "Umbrella policy"?
In whole life insurance, this optional feature allows policyholders to use dividends to purchase additional coverage without increasing premiums.
What are “paid-up additions”?
Emergency services, maternity care, and prescription drugs are all part of this required coverage package under the Affordable Care Act.
What are “Essential Health Benefits”?
When individuals most likely to experience a loss are also the most likely to purchase insurance, this problem occurs.
What is “adverse selection”?
The recommended coverage amount for your umbrella liability insurance policy should be greater than or equal to this.
What is “Net Worth”?
This type of account is typically “use-it-or-lose-it,” meaning unused funds may not roll over to the next year.
What is a “Flexible Spending Account (FSA)”?
You tried to turn life insurance into a tax sheltered investment… but the IRS said “nice try” and labeled it this instead.
What is a “Modified Endowment Contract”?
Under COBRA, the typical continuation coverage period following a qualifying event like termination of employment is this many months.
What is “18 months”?
This principle allows insurance companies to predict losses by analyzing large groups of similar risks.
What is “the law of large numbers”?
If you’re a fan of detached garages, then you’ll almost certainly be a fan of this option for coverage in a homeowner’s insurance declaration page.
What is “Coverage B - Other Structures”?
This State, host of the College World Series, has the highest average homeowners insurance premiums, at $4,004 annually.
What is "Nebraska"?