Exam 9: Life and Health Insurance

Why is it critically important to check out the financial health of a Life Insurance Company through a ratings company like A.M. Best before you purchase the insurance?

How does the concept of "opting out" work?

Sally brings home $50,000 a year to help provide financial support to her family, comprised of her husband and two children. She is considering purchasing life insurance. Using the earnings multiple approach, how much coverage should she purchase using a discount rate of 5% to replace 10 years of earnings.

Your medical insurance contains a feature that limits the total dollar amount that you are responsible for paying. This is called a

Your entire family was injured in an automobile accident, some more seriously than others. If any member of your family became disabled to a greater extent, where might you look for disability benefits?

Why is being the Policy owner so important?

Sharing the financial consequences associated with risk in the insurance industry is sometimes called

A flexible spending account saves you money on qualifying healthcare and childcare expenses.

Most major health care policies cover hospital, surgical, and physician coverages.

Under a traditional indemnity plan, most of your expenses are already covered and don't need to be reimbursed, but you're limited to receiving health care from a specified group of participating providers.

The advantage of whole life insurance is that it is generally cheaper than term life insurance per dollar of coverage.

How is variable life different from universal life and term insurance? Who is it best suited for?

Alvin Robinson works for the gas company and receives full family health care benefits as part of his compensation package. His health care policy is a major medical policy with a $2,000 family deductible, $25 copay, 80% coinsurance provision and $7,000 stop-loss provision. Alvin's wife, Odessa, works as an office manager for a local company. Her benefits package includes employee only health care coverage. Her company allows employees to "opt out" of the health care benefit for a cash incentive of $250 per month. -What advice would you give to Odessa concerning the opt-out option at her employer?

What is the major advantage of universal life insurance at any age?

Flexible spending accounts can be used for

Term life insurance has a life insurance component and a savings plan.

The Patient Protection and Affordable Care Act was signed into law in 2010; however many of its aspects do not go into effect until 2020.

Veronica was recently diagnosed with a heart condition. Her doctor's bill was $4,200 for the diagnostics. Her policy has a $250 deductible and a 80/20 coinsurance provision up to $10,000 and then the insurance pays 100% thereafter. In total, how much will Veronica pay for her diagnosis?

You know you desperately need life insurance but don't have much money available for premiums. What is the best thing you can do to find affordable insurance?

Which of the following is not a cash-value life insurance plan?