Types of Insurance
low income
If you are a young, healthy individual getting health insurance for the first time, you should get a __________ premium with a _________ deductible
low, high
Your monthly or regular payment to your insurer, regardless of whether you use any services
Premium
A higher risk individual gets charged a _______________ premium (due to risk pooling)
higher
How do insurance companies make money?
Collecting premiums (making sure that reward is bigger than risk)
Medicare is a ____________ health insurance program in the United States primarily for people aged ________ and older
federal, 65
Where does your premium come from when you have an employer-sponsored health insurance plan?
Your paycheck
The amount of money you agree to pay towards your losses before your insurance coverage will begin paying
Which person will probably have the MOST expensive health insurance premiums?
Julian, who has 3 children and is eligible for Medicaid
Samantha, a widow who is eligible for Medicare
Patty, who has their health insurance through their employer
Robin, a business owner who buys a plan for their whole family on the Marketplace
4 - Robin
True or false - multiple accidents will increase your car insurance premium
true
HMO or PPO? - requires you to choose a primary care physician (PCP) and get referrals from them to see specialists. It usually has lower premiums and out-of-pocket costs but less flexibility in choosing healthcare providers.
HMO
Auto insurance that protects you against costs to repair or replace your vehicle after events out of your control such as weather, vandalism, theft, etc.
Comprehensive insurance
Which term refers to the percentage of covered medical expenses you are responsible for paying after your deductible is met when using health insurance?
Co-insurance
Frank has an auto policy with a coverage limit of $30,000 and a deductible of $3,000. He gets into an accident and the damages to his car total $6,200. Fortunately, he has collision coverage. How much will Frank need to pay out-of-pocket?
$3,000
True or false - your monthly premium is considered an "out-of-pocket" expense
HMO or PPO? - offers more flexibility in choosing healthcare providers and doesn't require referrals to see specialists. However, it typically comes with higher premiums and out-of-pocket costs
PPO
Why would someone choose to get long term disability insurance even if they already have health insurance?
- helps pay their income if they have to take off work
A federal- or state-run website with the individual health insurance plans available in a given state
health insurance marketplace
Your renter's insurance policy costs $20/month and has a $1,000 deductible. A thief breaks into your apartment and steals your $900 TV set. How much would your insurance company pay?
$0
True or false - most states (49/50) require you to have Liability Insurance if you cause injury to another person
true
When switching from renters insurance to homeowners insurance, what should you prepare yourself for?
More expensive insurance
Your health insurance plan has a $20 copay for certain covered prescription medications. You arrive at the pharmacist and pick up your prescription (which is covered under your plan) which has a list price of $75. How much would you pay the pharmacy?
$20
A fixed dollar amount that you agree to pay each time you receive medical treatment, such as a doctor's visit or prescription
copay
You cause an accident and injure the other driver. The case goes to trial and there is a verdict to compensate the injured person with $68,000. You have a $75,000 coverage limit per person for Bodily Injury. How much will the insurance company pay?
$68,000
Insurance companies operate by charging individuals different prices for coverage depending on their risk levels. Then, they collect everyone's monthly premiums together and use the money to make payments when people file a claim (for example, someone is in an auto accident or needs to see a doctor). This concept is known as…
risk pooling