Personal Finance Chapter 10

Front 1

Causes of rising health care costs

Back 1

- Advances in technology
- Increase third party payments
- Litigation
- Rising Administrative Costs

Front 2

Health Care Coverage- Government Programs

Back 2

Medicare
Medicaid

Front 3

Health Maintenance Organization (HMO)

Back 3

an organization that for a fixed monthly fee provides all your health care. (YOU CANT CHOOSE IT)

Front 4

Preferred Provider Organizations (PPO)

Back 4

a contract between local health care provider and employer to provide employee medical care at discount (CHOOSE YOUR OWN)

Front 5

Sources of Disability Income

Back 5

- Social Security
- Group Disability Plans
- Individual Disability Plans

Front 6

Types of workers comp benefits

Back 6

disability, medical cost, death benefits

Front 7

Types of life insurance policies

Back 7

- term insurance
- whole life insurance
- unversal life insurance

Front 8

Medicare Part A

Back 8

Hospital Insurance

Front 9

Medicare Part B

Back 9

Medical Insurance

Front 10

Demographics are defined as

Back 10

Age

Front 11

Term Insurance

Back 11

pure insurance that covers the insured for a set period of time

Front 12

Whole life insurance

Back 12

policy that combines life insurance protection with a savings feature

Front 13

Universal Life Insurance

Back 13

policy combines life insurance protection with a tax deferred savings account that earns interest.

Front 14

Why people should invest

Back 14

- to increase their future wealth
- to supplement income
- to reduce future/current tax liability

Front 15

Lonver lives =

Back 15

Longer retirement

Front 16

Money Market Instruments

Back 16

lending instruments that matures within one year. Bonds and stocks

Front 17

Bonds

Back 17

investments in which investor is lending money to some organization for a period of time. (You give money they give interest)

Front 18

Stocks

Back 18

Ownership interest in a corporation (Pays dividends)

Front 19

Strategic allocation

Back 19

involves decisions concerning the GENERAL mix of instruments

Front 20

Tactical allocation

Back 20

involves selecting specific instruments when the general categories of stocks, bonds and cash.

Front 21

Tactical: Conservative

Back 21

Stock: 20
Bond: 50
Cash: 30

Front 22

Tactical: Aggressive

Back 22

Stock: 80
Bond: 10
Cash: 10

Front 23

Tactical: Moderate

Back 23

Stock: 50
Bond: 30
Cash: 20

Front 24

Investment Risk

Back 24

Uncertainty over what an investments actual return will be over some future period of time.

Front 25

Morningstar

Back 25

Great source for mutual funds

Front 26

Lowest risk investment

Back 26

T Bill

Front 27

Highest risk investment

Back 27

Stock

Front 28

Deductible

Back 28

Portion of healthcare bills you must pay before receiving any benefits

Front 29

Copayment

Back 29

Portion of healthcare bills for which you are responsible after your deductible has ben sent.

Front 30

Face Value

Back 30

the amount the investor receives when a bond matures

Front 31

Conservative

Back 31

Buy and hold is ________ investing

Front 32

Diversification

Back 32

Investment philosphy of spreading money among different investments

Front 33

Double or triple indeminity clause

Back 33

clause that doubles or triples the amount of life insurance proceeds in the vent the insured dies in an accident

Front 34

Waiver of premium

Back 34

clause that commits insurance company to make premium payments for you if an illness of accident prevents you from working

Front 35

Guaranteed insurability clause

Back 35

clause gives u right to purchase additional insurance without pass physical exam