Test 11

• Automobile Insurance?


  A type of insurance that covers property damage or legal liabilities in the event of an auto accident or property damage in the event of theft.
• Beneficiary?


  The individual or group of individuals named to receive the benefit of a life insurance policy.
• Coverage?


  The things that are protected—or “covered”—in an insurance policy.
• Deductible?


  The amount you pay when you file an insurance claim.
• Dependents?


  Persons who depend on someone else for their livelihood. Most often these are minor children and a spouse, but they can be adult siblings, adult children, and elderly parents.
• Disability Insurance?


  A type of insurance that replaces the income of the insured individual if he or she cannot work due to injury or illness.
• Health Insurance?


  A type of insurance that covers the cost of both planned and unexpected health services.
• Homeowners Insurance?


  A type of insurance that safeguards the insured’s home and personal property against theft and damage from fire, smoke, and storms. It also covers legal liabilities of injuries suffered by other individuals in the insured person’s residence. It does not cover earthquake or flood damage.
• Insurance?


  An agreement in which an individual pays a company to protect him or her from property loss or damage or financial loss.
• Life Insurance?


  Insurance that pays a sum of money to a beneficiary when the insured individual dies.
• Policy?


  The agreement or contract between an individual and an insurance company.
• Premium?


  The cost of an insurance policy.
• Renters Insurance?


  A type of insurance that replaces personal property in a rental residence if it is stolen or damaged due to fire, smoke, or vandalism. It also covers legal liabilities of injuries suffered by other individuals in the insured person’s residence. It does not cover earthquake or flood damage.
• Term Life Insurance?


  A type of life insurance that pays a benefit only when a person dies during the term—or time period—of the policy.
• Whole Life Insurance?


  A type of life insurance that pays a benefit no matter when the person dies.