Dave Ramsey quiz-in’s and out’s of insurance – Flashcards
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The amount you pay for an insurance company
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premium
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costs that insurance doesn't cover; amount you pay.
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out of pocket
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the amount of life insurance you should have is ___ times your income
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10
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covers damage to a car if there is an accident
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collision
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covers damage to a car if a tree falls on it.
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comprehensive
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True or False The deductible on any insurance is the portion you have to pay before insurance covers any expeneses.
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True
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True or False if you have an older car, you can consider dropping your liability.
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False- collision
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True or False the purpose of insurance is to transfer risk
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True
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True or False cash value insurance is a good way to invest since it has a savings plan inside it.
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False
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True or False neither accidental death nor cancer insurance are good insurance policies to carry.
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True
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True or False short-term disability is covered by your emergency fund, so only buy long-term disability.
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True
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True or False The best type of identity theft insurance only provides credit report monitoring.
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False
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The time between the disabling event and the beginning of payments:
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elimination period.
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Life insurance policcy for a specfic period of time.
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term
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What can you do to decrease the cost of insurance policies?
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raise the deductible, shop around for rates,and take advantage of applicable discounts
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Covers restoration and monitoring services
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Identity theft protection
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Covers damage to a vehicle
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auto insurance
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covers the contents of an apartment
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renters insurance
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designed to replace income lost if you can't perform your job.
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disability insurance
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covers assisted living, in home or nursing home care
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long-term care insurance
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designed to replace income lost due to death
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life insurance
