Dave Ramsey Insurance Test questions and answers all are graded A+

• Deductible-The amount you have to pay out-of-pocket for expenses before the insurance company will cover any remaining costs - Answer-Deductible You should have as much ______________ as possible. - Answer-Liability Responsibility or obligations that arise during the course of business operations/ cars. Settled over time - Answer-Liability The amount you pay for insurance - your insurance bill - Answer-Premium To keep rate down, have: - Answer-Clean records, academic discounts, raised deductible Type of car matters. True or False? - Answer-True Insurance that covers damage of your building, if someone is hurt on your property, fire, theft - AnswerRenters' Insurance Maximum out of pocket - Answer-stop loss The amount you pay after the deductible is met - Answer-Copay Insurance covering health emergencies/ maintenence - Answer-Health Your coverage should be for _______% of your income AFTER TAX DOLLARS - Answer-65% Someone you want working your insurance for you: - Answer-Independent Insurance Agent Buy this AT 60. - Answer-Long Term Care InsuranceThis MUST HAVE RESTORATION. - Answer-Identity Theft Protection Insurance for a specified period of time. Very cheap and only pays out if you die. - Answer-Term Insurance Insurance that is for life. Typically more expensive b/c it funds a savings plan. Permanent. - Answer-Cash Value Insurance After kids have grown/left and you're debt free with investments at a good amount, you have become: ________________ - Answer-Self Insured Costs that insurance doesn't cover. Usually set at a maximum is the amount that you pay outside of premiums or co-payments - Answer-Out of Pocket The amount of life insurance you should have is ______ times your income - Answer-10 This covers damage to a car if there is an accident - Answer-Collision This covers damage to your car if a tree falls on it - Answer-Comprehensive The deductible on any insurance is the portion you have to pay before insurance covers any expenses - Answer-True If you have an older car, you can consider dropping liability - Answer-False The purpose of insurance is to transfer risk - Answer-True Cash value insurance is a good way to invest since it has a savings plan inside - Answer-FalseNeither accidental death nor cancer insurance are good insurance policies to carry - Answer-True Short term disability is covered by your emergency fund, so only buy long term disability - Answer-True The best type of identity theft insurance only provides credit report monitoring - Answer-False