Wise Insurance

Most insurance companies sell you insurance because:

• the government requires them to do so

• they are charitable institutions with a mission to reduce hardship

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

Insurance can reduce financial risk

• True

• False

David's mother is killed in an automobile accident. What type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed?

• Life

• Health

• Disability

• Worker's Compensation

Under current law, until what age can a child stay on their parents' health insurance?

• 18

• 21

• 26

• 29

Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What types of insurance would be used in this case?

• Health

• Liability

• Disability

• Unemployment

What is the primary purpose of insurance?

• To provide financial protection against losses

• To increase wealth

• To avoid paying taxes

• To promote social gatherings

Which type of insurance is typically required by law for drivers?

• Health insurance

• Life insurance

• Auto insurance

• Home insurance

What is a premium in the context of insurance?

• A reward for safe driving

• A monthly or annual payment for insurance coverage

• A penalty for filing a claim

• A bonus for referring a friend

Which of the following is a benefit of having health insurance?

• Access to free gym memberships

• Coverage for medical expenses

• Guaranteed employment

• Free travel tickets

What does liability insurance cover?

• Damage to your own property

• Injuries to others and damage to their property

• Your personal health expenses

• Loss of personal belongings