Quiz: Understanding Different Types of Insurance

What is typically covered under health insurance? *

Vehicle repairs

Doctor visits and prescription medications

Home improvements

Funeral costs

Which type of auto insurance covers damage to your vehicle caused by a non-collision event, such as theft or fire? *

Liability coverage

Collision coverage

Comprehensive coverage

Medical payments coverage

What does homeowners insurance typically not cover without additional coverage? *

Theft

Fire damage

Flood damage

Personal belongings

Which of the following best describes term life insurance? *

Provides coverage for a set period of time and is generally more affordable

Covers an individual for life and builds cash value

Requires no premiums

Provides automatic renewal without time limits

Which type of insurance is required by law in most states for vehicle owners? *

Comprehensive coverage

Liability coverage

Life insurance

Health insurance

What should you consider when choosing a health insurance plan?
(Select all that apply) *

Deductibles and co-pays

Employer match

Coverage for preventive care and medications

Financial stability of the insurer

What does liability coverage in auto insurance pay for? *

Damage to your own vehicle

Medical expenses and property damage for others when you are at fault

Damage caused by natural disasters

Your car's maintenance costs

What is a major advantage of whole life insurance over term life insurance? *

It is more afforable

It builds cash value over time

It requires no medical exams

It covers only a set term of years

Why might someone want to purchase additional flood insurance for their home? *

Flood damage is typically covered by standard homeowners insurance

Floods are excluded from most standard homeowners insurance policies

Flood insurance is cheaper than homeowners insurance

Flood insurance provides liability protection

When selecting insurance, why is it important to review the insurer’s financial stability? *

To ensure the insurer can cover large claims when necessary

To lower your premiums

To determine if the insurer has a high number of policies

To qualify for better deductibles