Dave Ramsey Chapter Post-Test 9
Review Questions and Answers Latest
Version Graded A+
What is the main purpose of insurance?
A. To increase income
✔✔ B. To protect against financial loss
C. To avoid taxes
D. To reduce monthly bills
What does a deductible represent in an insurance policy?
A. The total amount the insurance company pays
B. The amount paid by the employer
✔✔ C. The amount you pay out of pocket before insurance covers the rest
D. The cost of the monthly premium
Why is health insurance considered essential?
A. It pays for car repairs
✔✔ B. It helps cover medical costs that could be financially devastating
1
,C. It guarantees free healthcare
D. It prevents illness
What is the purpose of auto liability insurance?
✔✔ A. It covers damages you cause to others in an accident
B. It pays for your personal injuries only
C. It covers oil changes and tire rotations
D. It increases the resale value of the vehicle
What type of insurance is most important if you are young and single?
✔✔ A. Health insurance
B. Life insurance with large investment
C. Pet insurance
D. Extended appliance warranty
Why is term life insurance recommended over whole life by Dave Ramsey?
✔✔ A. It's more affordable and provides high coverage
B. It includes investment options
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, C. It lasts forever and earns dividends
D. It has no expiration date
What is an HSA (Health Savings Account)?
✔✔ A. A savings account for medical expenses with tax advantages
B. A retirement plan
C. A savings account for vacations
D. An education fund
Why should you avoid extended warranties according to Dave Ramsey?
A. They add value to your purchases
✔✔ B. They are expensive and rarely used
C. They improve credit scores
D. They’re required by law
What is the benefit of having homeowner’s insurance?
A. It pays for groceries
✔✔ B. It covers damage or loss to your home and property
3
Review Questions and Answers Latest
Version Graded A+
What is the main purpose of insurance?
A. To increase income
✔✔ B. To protect against financial loss
C. To avoid taxes
D. To reduce monthly bills
What does a deductible represent in an insurance policy?
A. The total amount the insurance company pays
B. The amount paid by the employer
✔✔ C. The amount you pay out of pocket before insurance covers the rest
D. The cost of the monthly premium
Why is health insurance considered essential?
A. It pays for car repairs
✔✔ B. It helps cover medical costs that could be financially devastating
1
,C. It guarantees free healthcare
D. It prevents illness
What is the purpose of auto liability insurance?
✔✔ A. It covers damages you cause to others in an accident
B. It pays for your personal injuries only
C. It covers oil changes and tire rotations
D. It increases the resale value of the vehicle
What type of insurance is most important if you are young and single?
✔✔ A. Health insurance
B. Life insurance with large investment
C. Pet insurance
D. Extended appliance warranty
Why is term life insurance recommended over whole life by Dave Ramsey?
✔✔ A. It's more affordable and provides high coverage
B. It includes investment options
2
, C. It lasts forever and earns dividends
D. It has no expiration date
What is an HSA (Health Savings Account)?
✔✔ A. A savings account for medical expenses with tax advantages
B. A retirement plan
C. A savings account for vacations
D. An education fund
Why should you avoid extended warranties according to Dave Ramsey?
A. They add value to your purchases
✔✔ B. They are expensive and rarely used
C. They improve credit scores
D. They’re required by law
What is the benefit of having homeowner’s insurance?
A. It pays for groceries
✔✔ B. It covers damage or loss to your home and property
3
