Personal Finance Exam 3 Study Guide

Personal Finance Exam 3 Study Guide - Aggregate Limits:...

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Aggregate Limits : place overall max on total amount of reimbursement (any-occupation) Benefit Period : disability income policy, max period of time that benefits will be paid Certificate Of Insurance : outlines benefits and policy provisions for group health care COBRA : allows worker to remain in-group health plan for as long as 18months Coinsurance Clause : requires the insured to pay a proportion of any loss suffered Coordination-of-Benefits : prevents you from collecting insurance that exceeds the loss Copayment : specific amount that you pay each time you have a specific covered expense Deductibles : requires you to pay initial portion of losses before receiving reimbursement Guaranteed Renewable Policy : policy must continue as long as pays required premium Health Care Plan : insurance that pays for/reimburses for health care expenditures Health Insurance : protects against losses from illness, injury, disability (indemnity plan) Health Maintenance Organization : provides broad range of services on prepaid basis Hospital Indemnity : provides cash payment of specific amount per day of hospitalization Hospital-Service-Incurred : pays hospital directly rather than reimbursing the insured IPO : HMO variation where HMO contacts with, rather than hires, groups of physicians Long-Term Care : reimbursement for custodial care in nursing facility or at home Managed Care : pays for health care expenditures; has significant control over conditions Medicaid : financed program of federal gov and states, pays some expenses of the poor Medical Expense Coverage : reimburses physicians other than those in surgery Medicare : social security admin provides payment for expenses of those 65 and older Medicare Part A : pays hospitalization portion up to 90 days; B pays for outpatient care Open Enrollment Period : one month annually, begin/change/switch coverage or plans Point-of-Service Plan : HMO variation where the insured chooses physician from a list Portability Option : convert group coverage to individual when company plans terminate PPO : medical care providers contract with insurance company and provides discount Provider Sponsored Network : group of physicians who band together provide insurance Recurring Clause : clarifies whether recurrence of illness is a continuation or new episode Social Security Disability : helps replace lost income of disabled workers lasts 12months Split-Definition : provide own-occupation coverage 1 st 2years then any-occupation basis Waiting (Elimination) Period : between onset of disability and date that benefits begin Adjustable Life Insurance : cash-value ins allows owner to modify prem, face, or deposit Automatic Premium Loan : allows any premium not paid to be w/ excess cash value funds Cash Surrender Value : (cash value – back end load charges) received if policy cancelled Cash Value : value of the investment in the life insurance policy (dollar amount) Cash-Value Insurance : permanent; pays at death and has savings element while alive
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Personal Finance Exam 3 Study Guide - Aggregate Limits:...

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