Introduction to Insurance

Match the vocabulary words with their definitions

How does an insurance company determine your premium?

Typically, as the premium increases, the deductible _______________.

Suppose someone pays $79 premium per month for health insurance which has a $200 deductible and covers up to $10,000.

Part A: How much will you pay a year in health insurance?

Suppose someone pays $79 premium per month for health insurance which has a $200 deductible and covers up to $10,000.

Part B: Unfortunately you have a sore throat and have to go into the doctor. The doctor bill turns out to be $250 after a few tests were run. How much will you have to pay before insurance kicks in?

Suppose someone pays $79 premium per month for health insurance which has a $200 deductible and covers up to $10,000.

Part C: Unfortunately you have a sore throat and have to go into the doctor. The doctor bill turns out to be $250 after a few tests were run. How much will insurance pay?

How much is your yearly health insurance if your monthly premium is $120?

Health insurance premiums are known to increase by 50% for smokers(tobacco and nicotine). Suppose someone's monthly health insurance is $120. The insurance company finds out you smoke(https://healthcareinsider.com/health-insurance-smokers-42747) and therefore raises your rate by 50%. How much is your new health insurance premium?

HINT! Determine 50% by $120 * 0.50

Then, add that answer to $120.

How much is your yearly health insurance if you pay 180 a month?

How much more do you pay a year because of the premium increase?

(Hint: You will use the premium amounts you calculated in #7 and #9)