Personal Finance Ch. 9 Test

Front

Which of the following would not be a huge financial risk (and, therefore would not require insurance) if you had a full emergency fund of $500 or more? Options: You lose your cell phone, A medical emergency, Your identity gets stolen, A car accident

Back

You lose your cell phone

Front

The time between the disabling event and the beginning of payments in your disability coverage is called:

Back

Elimination period

Front

Life insurance policy for a specific period of time is called: Universal, Level, Term, Whole life

Back

Term

Front

The purpose of insurance is to: Develop a savings plan, Transfer financial risk, Provide an investment opportunity, All of the Above

Back

Transfer financial risk

Front

Which of the following is not a recommended way of lowering your car insurance premiums? Get good grades and take a driver education class, Increase your deductible, Shop around

Back

Drop your auto insurance altogether

Front

Which of the following types of insurance is not recommended for a young single adult? Auto insurance, Identity theft, Health insurance, Life insurance

Back

Life insurance

Front

Which of the following types of insurance is not a recommended way to save on your health insurance premium? Options: Increase your deductible, See if a health savings account would make sense for your situation., If you are young and healthy, you do not need health insurance, Increase your stop-loss or your maximum out-of-pocket expense.

Back

If you are young and healthy, you do not need health insurance

Front

A person becomes self-insured when: Their kids are grown, they have no debt, and they have fully funded retirement, They have no debt, Everyone should have term life insurance regardless of age or financial well-being, They own their own business

Back

Their kids are grown, they have no debt, and they have fully funded retirement

Front

Which of the following is true? Any kind of duplicate insurance coverage is a bad idea, Pet insurance is a good idea since pet emergencies can be very expensive, You can never be too safe- there is no bad insurance, Mortgage life insurance is necessary if you are a homeowner

Back

Any kind of duplicate insurance coverage is a bad idea

Front

Which of the following statements about long-term care insurance is false? Options: You should not buy long-term insurance care insurance until age 30., At least 69% of people over the age of 65 will require long-term care at some point., Long-term care insurance is not the same as disability or short-term medical care., A good long-term care policy will include in-home care.

Back

You should not buy long-term insurance care insurance until age 30.