Question

You should not buy identity theft protection that only provides credit report monitoring.
True
False
A person becomes self-insured when:
They own their own business
Everyone should have term life insurance regardless of age or financial well-being
They have no debt
Their kids are grown, they have no debt, and they have fully funded retirement
Applies to the amount of protection you have through an insurance company in the event of a loss
Premium
Coverage
The time between the disabling event and the beginning of payments in your disability coverage is called:
Stop gap
Elimination period
Out of pocket
Deductible
Which of the following statements about disability insurance is false?
After college, short-term disability should be covered by your emergency fund of three to six monthsʹ worth of expenses, staying out of debt, and having a money plan.
Your coverage should be for 65% of your income.
A longer elimination period will lower your premium cost.
Disability insurance is not necessary if you have a good health insurance policy.
Amount you must pay before you begin receiving any benefits from your insurance company
Income
Deductible
Describes the type of coverage in an insurance agreement
Premium
Policy
Comprehensive coverage takes care of damage to your car that is not caused by a collision.
False
True
Good identity theft protection includes restoration services.
False
True
A legally enforceable declaration of how a person wishes his or her property to be distributed after death
Will
Policy
Following the Five Foundations will help you to, one day, become self-insured.
False
True
Which of the following is not a recommended way of lowering your car insurance premiums?
Shop around
Increase your deductible
Drop your auto insurance altogether
Get good grades and take a driver education class
You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:
Uninsured motorist protection
Liability
Collision
Comprehensive
Which of the following is not a benefit of having a will?
You only need a will if you have a large estate.
Your will can be an expression of your personal values.
A well-drafted will can allow your family to minimize death taxes and other costs that may drain your estate of assets.
A will enables you to nominate the persons who will handle your estate or serve as guardians to your children, and it allows you to determine who will receive all the property you have accumulated over your lifetime.
Life insurance policy for a specific period of time is called:
Whole life
Term
Level
Universal
Disability insurance offered through your employer is usually the most expensive coverage option.
False
True
Renter’s insurance is not necessary if you don’t have a lot of expensive things.
False
True

Answer 1

1) You should not buy identity theft protection that only provides credit report monitoring.
Answer: True

2) A person becomes self-insured when:
Answer: Their kids are grown, they have no debt, and they have fully funded retirement

3) Applies to the amount of protection you have through an insurance company in the event of a loss
Answer: Coverage

4) The time between the disabling event and the beginning of payments in your disability coverage is called:
Answer: Elimination period

5) Which of the following statements about disability insurance is false?
Answer: Disability insurance is not necessary if you have a good health insurance policy.

6) Amount you must pay before you begin receiving any benefits from your insurance company
Answer: Deductible

7) Describes the type of coverage in an insurance agreement
Answer: Policy

8) Comprehensive coverage takes care of damage to your car that is not caused by a collision.
Answer: True

9) Good identity theft protection includes restoration services.
Answer: True

10) A legally enforceable declaration of how a person wishes his or her property to be distributed after death
Answer: Will

11) Following the Five Foundations will help you to, one day, become self-insured.
Answer: True

12) Which of the following is not a recommended way of lowering your car insurance premiums?
Answer: Drop your auto insurance altogether

13) You are involved in a two-car accident in which you are at fault. The other driver is injured and your insurance covers the medical expenses of the victim. This type of insurance coverage is called:
Answer: Liability

14) Which of the following is not a benefit of having a will?
Answer: You only need a will if you have a large estate.

15) Life insurance policy for a specific period of time is called:
Answer: Term

16) Disability insurance offered through your employer is usually the most expensive coverage option.
Answer: False

17) Renter’s insurance is not necessary if you don’t have a lot of expensive things.
Answer: False