Personal Finance: insurance

What is the point of insurance?

• A required expense of living on your own

• In the case of an emergency insurance companies will cover the cost

• Insurance is only a want, not required

• To invest your money into

What is a policy?

• The amount you have to pay before your insurance benefits start

• What you pay to the insurance company each month

• What you file with the insurance company after an incident

• A contract between you and the insurance company

What is the premium?

• How much you will pay if an accident were to occur

• Annual price or cost of the policy

• The cost before you pay anything on insurance

• Monthly payment

You rear end someone and damage their car and yours. There car ends up needing $8,000 worth of repairs and your car is totaled. However the insurance will only cover the other party, what type of insurance is this?

• Liability

• Uninsured

• Full Coverage

• Collision

What is the term for the person who receives money if the insured dies suddenly?

• Floater

• The receiver

• Beneficiary

• Policy holder

What is term life, in life insurance?

• Used for potential loss of income and provides a safety net for beneficiaries.

• Full coverage life insurance that insures and pays for you and your family in medical emergencies only

• Life insurance that will only pay for certain periods of your life

The process of measuring risk and finding ways to minimize or manage loss?

• Risk

• Risk Management

• Speculative risk

• Damage control

_________ management occurs when an investor or fund manager analyzes and attempts to quantify the potential for losses in an investments?

• Return

• Insurance

• Investment

• Risk

Worried about matching to beating inflation with your return is likely what?

• Inflation Risk

• Liquidity Risk

• Credit Risk

• Economy Risk

Sarah invests into Geico insurance, where she will pay $350 down and then pay $75 each month to be insured. Which is Sarah's premium?

• $75

• $350

• Full coverage

• Liability