Virtual Business: Personal Finance Lesson 18 Review

Most insurance companies sell you insurance because:

• The government requires them to

• They are charitable institutions with a mission to reduce hardship

• They generally take in more in premiums than they pay out

• All of these

True or False: You always want the lowest possible deductible because it means you will pay less out of pocket in case of a loss

• True

• False

Which of the following is NOT a type of insurance?

• Homeowners

• Auto

• Deductible

• Identity theft

Life insurance is NOT used for:

• Burial expenses

• Investing in the stock market

• Providing for dependents

• Payment to policy holder

One of the two types of life insurance is:

• Two-term insurance

• Whole life insurance

• Terminal life insurance

• Tri-term insurance

If a person in your house was bitten by your dog, which type of insurance would you be covered under?

• Life insurance

• Health insurance

• Disability insurance

• Homeowners insurance

If your MP3 player is stolen from your apartment, what type of insurance would it be covered under?

• Auto insurance

• Homeowners insurance

• Renters insurance

• Life insurance

Which is NOT a kind of health insurance:

• Point-to-Point service plan

• Point-of-service plan

• Health maintenance organization

• Preferred provider organization

if you crashed your car into a house, which kind of insurance would you use

• Homeowners insurance

• Renters insurance

• Disability insurance

• Auto insurance

A deductible is:

• The discount you deduct from your premimum

• The amount you pay when you file an insurance claim

• The amount that is deducted when you buy a policy

• The discount received by a health care provider