Insurance Planning Flashcards
6 cards from real FICEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Insurance Planning flashcards as text
What is the purpose of an insurance deductible and how does it affect premiums?
Answer: A deductible is the amount the insured pays before coverage begins; higher deductibles lower premiums
The deductible is the out-of-pocket amount before insurance coverage kicks in. Higher deductibles lower premium costs.
A client has employer life insurance equal to one year's salary. Is this sufficient?
Answer: Usually not; most experts recommend 10-12 times annual income
One year's salary typically falls far short of family needs. Most guidelines recommend 10-12 times annual income.
What is an umbrella insurance policy and who should consider it?
Answer: Extra liability coverage extending beyond home and auto policy limits, recommended for those with significant assets
An umbrella policy provides additional liability coverage above existing home and auto limits, protecting personal assets.
What is the difference between copay, coinsurance, and out-of-pocket maximum?
Answer: Copay is a fixed amount per visit; coinsurance is a percentage after deductible; out-of-pocket maximum caps total patient spending
A copay is a fixed fee per service, coinsurance is a patient percentage after deductible, and out-of-pocket maximum is the yearly ceiling on cost-sharing.
Why is long-term care insurance important and when should clients consider it?
Answer: It covers nursing home and assisted living costs not covered by Medicare; consider it in your 50s
Long-term care insurance covers extended care not covered by Medicare. Purchasing in one's 50s provides more affordable premiums.
What should a counselor consider when evaluating a client's auto insurance?
Answer: Liability limits, deductibles, uninsured motorist coverage, and whether vehicle value justifies comprehensive/collision
Auto insurance evaluation should consider liability limits, deductibles, uninsured motorist protection, and vehicle age and value.