Personal Economics From Chapter 11

Front 1

Personal Economics

Chapter 11

Back 1

Personal Economics

Chapter 11

Front 2

Auto Insurance

Back 2

Insurance to protect a car owner in the event of an accident or damage to a vehicle.

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Beneficiary

Back 3

The recipient of assets passed on from the death of a friend or relative.

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Break-Even Analysis

Back 4

Method used to evaluate the wisdom of a financial decision by determining the length of time it will take for the cost of the decision to be recouped.

Front 5

Cash Value Insurance

Back 5

Also known as permanent life insurance; premiums include a death benefit and a plan to build savings within the policy; two main types are whole life and universal life; significantly more expensive than term life insurance.

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Claim

Back 6

Paperwork filed with an insurance company in order to get them to cover a loss.

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Collision

Back 7

Portion of auto insurance that covers losses due to vehicle damage in an accident.

Front 8

Comprehensive

Back 8

Pays for damage to your car that is not a result of an accident.

Front 9

Co-Pay

Back 9

In regards to health insurance, paying a set amount per medical visit.

Front 10

Coverage

Back 10

Applies to the amount of protection you have through an insurance company in the event of a loss.

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Deductible

Back 11

Amount you have to pay out-of-pocket for expenses before the insurance company will begin to cover all or a portion of the remaining costs.

Front 12

Elimination Period

Back 12

Amount of time that lapses after a disabling event before the insurance company begins to pay benefits.

Front 13

Extended Replacement Cost

Back 13

Part of homeowner's insurance policy that pays a percentage beyond the insured price of the home for purposes of rebuilding it in the event of a catastrophic loss. If you do not update this, it will not cover the appreciation of your home.

Front 14

Guaranteed Replacement Cost

Back 14

Part of homeowner's insurance policy that pays for the full cost of replacing damaged property without a deduction for depreciation and without a dollar limit.

Front 15

HSA (Health Savings Account)

Back 15

A health insurance plan for self-employed people containing a large deductible. Money saved in this account grows tax deferred. It can be used for medical care with no penalties and no taxes, and may be kept if unused.

Front 16

Health Insurance

Back 16

Covers you in the event of illness or injury.

Front 17

Homeowner's Insurance

Back 17

Policy that covers a loss due to damage, theft, or injury within one's home.

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Level Term

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This means you pay the same amount for the entire term of the policy.

Front 19

Liability Insurance

Back 19

Policy that protects an individual in the event of a lawsuit due to injury on one's personal property or as the result of an automobile accident.

Front 20

Life Insurance

Back 20

Type of insurance designed to replace income lost due to death; traditionally two types: term and cash value.

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Long-Term Care Insurance

Back 21

Policy that covers the cost of nursing home or in-home care; recommended for everyone over age 60.

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Long-Term Disability

Back 22

Disability insurance designed to replace lost income for a period of five years or greater.

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Maximum Payment

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The amount an insurance company will pay before you are dropped from coverage. With health insurance keep at least a one million dollar maximum pay.

Front 24

Mortgage Insurance

Back 24

Insurance policy that pays off the remaining balance of the insured person's mortgage at death.

Front 25

Occupational Disability

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Type of insurance that provides an income in case the insured becomes unable to perform the job he/she was educated or trained to do.

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Out of Pocket

Back 26

What you have to pay.

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Permanent Disability

Back 27

Disabilities that are ongoing and are not expected to end.

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Policy

Back 28

Describes the type of coverage in an insurance agreement.

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Premiums

Back 29

Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance.

Front 30

Renter's Insurance

Back 30

Type of insurance that provides coverage for accidents, damages and losses in a rental or dormitory. Renter's insurance provides coverage for personal belongings and liability that may occur from an accident in the insured home.

Front 31

Restoration Services

Back 31

Part of identity theft insurance that assigns a counselor to clean up the mess made when your identity was stolen.

Front 32

Self-Insured

Back 32

Condition of wealth at which time one no longer needs an outside insurance policy to cover a loss.

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Short-Term Disability

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Minimal period of incapacitation; often used to describe an insurance policy that insures one's income for the immediate future following an incapacitating event.

Front 34

Stop-Loss

Back 34

Total out-of-pocket expense for health insurance; once reached, insurance will pay 100 percent.

Front 35

Term Insurance

Back 35

Life insurance coverage for a specified period of time.

Front 36

Umbrella Liability Insurance

Back 36

High-limit insurance policy that acts as a protective covering over your home and car insurance against liability caused by an accident.

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Universal Life

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Type of insurance policy, similar to cash value, but with abetter projected returns.

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Variable Life

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Type of insurance that is similar to cash value, but buys into mutual funds to project better returns.

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Whole Life Insurance

Back 39

Type of insurance that contains a low-yield savings plan within the insurance policy; more expensive than term life insurance.