Insurance – Flashcards

Which of the following statements is correct? A. Cars typically lose the most value in the first year after purchase. B. Houses will always appreciate in value over the long-term. C. Both A & B D. Neither A nor B

A typical housing lease may require a tenant to: A. Repair certain types of damage to the property B. Purchase renter's insurance for the property C. Avoid participating in illegal activity on the property D. Both A & B E. All of the above

Which of the following will affect the size of your monthly mortgage payment? A. The size of your down payment B. The length of your mortgage C. The purchase price of your house D. All of the above

A document that you will sign with the owner that gives you the right to live there in exchange for paying the rent and keeping it in good condition.

Conditions that you and your property owner agree to. Examples: cost, how long you're going to stay, if you can have pets, or no smoking.

Tenant vs Landlord

What are you agreeing to when you lease a car?

Rent to own agreements

depreciating assets

appreciating assets

Renting pros:

Renting cons:

security deposit

ulitiities

renters insurance

house owning pros

house owning cons

A loan for a home

What do you need to get a mortgage?

Different types of mortgages:

Biggest factor in a mortgage-

Things to reduce monthly payments:

Things to consider when buying a car:

Leases have:

Lease pros

lease cons

buying pros

buying cons

first buying a car you have to

What is a mortgage? A. A type of rent used to pay for housing B. A type of loan used to buy property C. A measure of the value of a home D. A measure of your credit rating

One reason to buy a home instead of rent a home is: A. Homes have the potential to appreciate in value over time. B. Homes have fewer maintenance costs. C. Buying a home requires less money upfront. D. Buying a home is a more flexible housing option.

John would like to move from the suburbs into the city, but the rent in the city is very high. John has found an apartment he really likes, but he can only afford about 60% of the monthly rent. What is the best housing option for John? A. Purchase a home in the city center instead. B. Rent the apartment anyway. C. Rent the apartment with a roommate. D. Purchase a home in the suburbs instead.

A _________ is generally considered an appreciating asset because it will _________ in value over time. A. car; increase B. car; decrease C. house; increase D. house; decrease

Which of the following is NOT a cost typically associated with owning a car? A. Fuel B. Insurance C. Wear & Tear fees D. Maintenance

Renting provides _________ flexibility but can lead to _________ costs in the long-term. A. greater; lower B. greater; higher C. less; lower D. less; higher

Jim wants to buy a car, but he'll probably only need it for a couple of years. He has a short commute to work, so he won't be putting many miles on his vehicle. What's the best transportation option for Jim? A. Use his savings to buy the car in full B. Buy the car using an auto loan C. Lease the car D. Take public transportation

Someone may choose to own a car instead of leasing because: A. The car can be resold later to make some money back. B. The car can be resold later for a higher price. C. The maintenance costs for a leased car are generally higher. D. The insurance costs for a leased car are higher.

All of the following components are commonly found in rental housing agreements EXCEPT: A. Whether the renter can have pets in the house B. How much the renter will pay C. What type of renter's insurance the renter must buy D. Which repair types the renter will be responsible for

Which of the following statements about renting & owning is CORRECT? A. A renter has complete responsibility and control over the property. B. An owner has complete responsibility and control over the property. C. Neither a renter nor owner has responsibility and control over the property. D. Both the renter and the owner share responsibility and control over the property.

Simpliest method of paying for items, but SAVE your receipts.

Automatically comes out of your bank account; record of your transaction.

"Charged" purchase; record of your transaction; make sure you payoff every month if possible; sometimes will include insurance against defective merchandise and easier returns.

Use a secure payment website to make your payments; you will have to place your bank account information online; paypal is an option that allows you to securely make payments without divulging your account information to individual retailers.

Increasing in use; credit card/bank account info is saved to your device; be careful to safeguard your device against theft.

Usually amount not automatically deducted from your bank account; some retailers will not accept; some places (like school) will only accept check or cash.

Some employers will pay you with a "payroll card"; instead of depositing money into your bank account or writing you a check, they load these cards with the money you've made working; use these like a credit or debit card to pay for purchases.

Some retailers offer options to place merchandise on hold for you until you have paid in full. No interest is charged to you, but you don't get your merchandise until you have paid for it in full.

Schedule bill payments for a certain day each month to be deducted from your bank account; will ensure that you pay your bills on time, but you have to remember to check your bank account for these transactions AND make sure there is money in your account to cover.

what type of insurance would you use? you are having a baby and need medical care

what type of insurance would you use? after back surgery you are unable to work for six months

what type of insurance would you use? you are elderly and need assistance to continue living at home

what type of insurance would you use? your home is destroyed by a tornado and you need to rebuild

what type of insurance would you use? the car you are driving causes an accident that injures someone else

what type of insurance would you use? a sudden death of a family member results in loss of income

Ani's car skids off the road and into a telephone pole after she hits a patch of ice

jackson's appendix bursts and he needs immediate medical attention

dylan rear ends the car in front of him after the driver slams of his breaks

rihannas husband recently passed away and she needs help covering the cost of the funeral

geniveve is 85 years old and requires a daily nurse to help her

vincent breaks his leg and is unable to work for six months

a hurricane breaks windows and floods catherine's home and everything needs to be replaced

mason breaks his leg playign soccer and he needs surgery and a cast