Which is a type of insurance to avoid?
Mortgage insurance. Avoid insurance that will pay off your mortgage if you die unless you're ineligible for term life insurance. Reason: Mortgage insurance coverage declines as you pay down your mortgage, yet the premium stays the same.
Which of the following are types of insurance quizlet?
An insurance policy is a legal contract between and insurance company and an insured, in which the insurance company will pay an insured for covered losses in exchange for the insured paying the premiums.
What is an insurance policy quizlet?
In the strict insurance definition, risk is the uncertainty regarding financial loss. Insurance is used to minimize the risk of uncertainty by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss.