Succeeding in the World of Work

Section 1: Insurance Basics

Answers to Section Review

1. A premium is an amount of money a policyholder pays to an insurance company for coverage; a deductible is the amount a policyholder pays on a claim before the insurer pays.
2. Possible answers: shop around, buy only the amount of coverage needed, and raise deductibles.
3. Answers will vary. Students should understand that in the United States, having insurance is not a guaranteed right. If insurance companies covered everyone, premiums would rise.