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Personal Finance: Life and Health Insurance
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What Is the Difference Between Life and Health Insurance? 
Health insurance pays for your medical treatment, drugs, and preventative check-ups for you and others covered under your plan.

Life insurance provides a cash sum to your loved ones if you die during the length of the Life insurance policy.

Personal Finance: Life and Health Insurance
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25 Questions

1. One of the provisions of the Affordable Care Act is to prevent insurance companies from denying coverage to consumers with preexisting conditions.
2. Insurance that covers medical costs beyond those covered by basic health insurance is
3. Cash value policies include a ________ clause that allows you to borrow against the cash value of the policy.
4. A guaranteed insurability rider allows you to increase your face value even if your health fails.
5. Compared to those of normal weight, the 34 percent of Americans who are considered obese incur $1,429 per year in additional medical costs, and the average hospital bill for a heart attack is $54,400.
6. Cash-value insurance is any policy that provides both a death benefit and an opportunity to accumulate cash value.
7. The suicide clause will pay double the face value to the beneficiary if the named insured commits suicide.
8. A universal life insurance policy is a type of cash-value insurance combining term insurance with a tax-deferred savings feature in a package in which both the premiums and the benefits are flexible.
9. Group health insurance
10. Wayne and Sarah are trying to manage the risk they face in life a best as they can- They are following Principle 7 which states
11. If you have a good comprehensive health care policy, paying extra for disability income coverage is not a good use of your scarce insurance budget.
12. Statisticians who specialize in estimating the probability of death based on personal characteristics are called
13. Brenda's husband Bob died last week- Her agent told her she could receive the death proceeds tax-free and a monthly check until her death- He is talking about the ________ settlement option.
14. If your employer doesn't provide them, then it might not be a financially wise decision to purchase dental and eye insurance.
15. Two recommended online insurance quote services are accuquote.com and insure.com.
16. Which of the following statements is true about individual health care policies versus group healthcare policies?
17. Barry Blair wants to select a good life insurance agent- His dad has had several negative experiences with life insurance agents in the past- What should Barry consider when selecting an agent?
18. With a PPO, it is much more expensive to go to out of network healthcare providers.
19. Life insurance may not be necessary if
20. For which of these situations is life insurance a good idea?
21. The beneficiary is the individual designated by the owner of the life insurance policy to receive the insurance policy's proceeds upon the death of the insured.
22. Alice and Tommy have 3 dependent children- Alice earns $125,000 per year- They are taking out insurance on Alice for the next 30 years- Tommy expects to get a 9.25% rate of return on the life insurance payoff- Using the earnings multiple approach calculate how much life insurance they need to take out on Alice.
23. When firms allow employees to 'opt out' regarding health care, employees
24. With the needs approach, you should take into consideration any additional insurance policies that have been taken out on your life.
25. One of the best features of term insurance is that you are able to borrow against the face value.

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