Economic Chapter 9 Vocabulary

Economic Chapter 9 Vocabulary Auto Insurance - covers damage to your vehicle and protects you financially if you're liable for someone else's injuries or damages. Beneficiary - a person who derives advantage from something, especially a trust, will, or life insurance policy Break-even analysis - uses three assumptions to determine a break-even point: fixed costs, variable costs, and unit price. Fixed costs and variable costs are both included in this glossary, and unit price is the average revenue per unit of sales Cash Value Insurance - the portion of your policy that earns interest and may be available for you to withdraw or borrow against in case of an emergency. Claim - a formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event Collision - collision coverage protects against collisions with another vehicle or object Comprehensive - a coverage that helps pay to replace or repair your vehicle if it's stolen or damaged in an incident that's not a collision. Comprehensive, sometimes called "other than collision" coverage, typically covers damage from fire, vandalism or falling objects (like a tree or hail). Co-Pay - A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible Coverage - the amount of risk or liability that is covered for an individual or entity by way of insurance services. Deductible - the amount you pay for out-of-pocket costs for your covered health care before your plan begins to pay Elimination period - a term used in insurance to refer to the time period between an injury and the receipt of benefit payments Extended replacement cost - a home insurance add-on that extends your dwelling coverage limit an additional 10% to 50% Guaranteed Replacement Cost - covers the cost to repair or replace your home after a covered loss, even if the cost exceeds your policy limit. HSA - A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses Health Insurance - an agreement in which an insurance company agrees to pay for some or all of your medical expenses in exchange for a monthly premium payment. Homeowner’s Insurance - pays for losses and damage to your property if something unexpected happens, like a fire or burglary Level Term - a policy that has a level death benefit for the entire time the policy is in effect Liability - Liability insurance coverage protects you financially if you're responsible for someone else's injuries or property damage Life Insurance - a contract stating that, as long as your premium is paid and the policy is active when you die, your beneficiaries can receive a death benefit payout to be used however they like Long-Term Care Insurance - helps cover the costs of that care when you have a chronic medical condition, disability or disorder Long-Term Disability - provides wage replacement that is between 50-70% percent of your earnings before a non-work related injury impacted your ability to work Maximum Payment - a cap, or limit, on the amount of money you have to pay for covered health care services in a plan year Mortgage Insurance - lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get Occupational Disability - benefits are paid when you become disabled due to a work-related injury or illness Out of Pocket - expenses are those which you pay out of your own money on behalf of someone else, and which are often paid back to you later Permanent Disability - a physical or mental impairment that indefinitely diminishes a worker's ability to perform the duties or normal activities that the worker performed before the accident or serious illness Policy - a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured) Premiums - The amount you pay for your insurance every month Renter’s Insurance - protects your personal property in a rented apartment, condo or home from unexpected circumstances such as theft, a fire or sewer backup damage Restoration Services - the first responders following significant damage to a home from floods and fires, water dam- age, sewage backup and other major events Self-Insured - rather than paying an insurance company to pay medical, dental and vision claims, we pay the claims ourselves, using a third-party administrator to process the claims on our behalf Short-Term Disability - replaces a portion of your income during a disability, which could last up to 26 weeks Stop-Loss - a type of order that investors or traders use to limit their potential losses in the stock market. It works by automatically selling a security when its price reaches a certain level, known as the stop price Term Insurance - a type of life insurance policy that provides coverage for a certain period of time or a specified “term” of years Umbrella - a type of insurance designed to add extra liability coverage over and above another insurance policy, such as auto or homeowners insurance Universal Life - a type of permanent life insurance. With a universal life policy, the insured person is covered for the duration of their life as long as they pay premiums and fulfill any other requirements of their policy to maintain coverage. Variable Life - a permanent life insurance policy combined with a cash-value account invested in bonds or stocks. a variable life insurance policy lasts until the policyholder's death. Whole Life Insurance - also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured