What is meant by the out-of-pocket maximum?
> Distinguish among the three levels of care in long-term insurance.
> Many people complain that property insurance policies should pay more than what the insurance companies say is the actual cash value of the property, such as for a used motor vehicle with low mileage that is in near-perfect condition. How do you feel abo
> What are activities of daily living?
> Explain why selecting a policy with a high deductible and high liability limits is better than one with a low deductible and low liability limits.
> Distinguish between collision and comprehensive insurance.
> Identify who is protected by medical payments coverage.
> Explain the meaning of the numbers 100/200/75.
> Identify the four types of automobile insurance coverage.
> Identify the two ways that homebuyers build equity in their property.
> Distinguish between a conventional mortgage loan and an adjustable-rate loan.
> Explain why the portions of a monthly mortgage payment that are allocated toward interest and toward principal will vary as the loan is repaid.
> Summarize how a small claims court work.
> Are prepayment penalties such as that applied with the rule of 78s justified? Why or why not?
> How do lemon laws work?
> Distinguish between mediation and arbitration.
> Summarize the FTC’s cooling-off rule to cancel a contract.
> Which alternative lender probably charges the highest interest rate?
> What is an acceleration clause?
> What reasons do some people offer for not having a relative co sign a student loan?
> What is the difference between a secured and an unsecured loan?
> Distinguish between a single-payment and an installment loan.
> Offer your impressions of working for an employer that offers a sizable matching contribution compared with one that does not.
> Explain why defined-contribution retirement plans are called self-directed.
> If you were the borrower, how would you feel about the fact that interest costs are higher in the early months of a declining balance loan than they are in the later months?
> Summarize the main differences between defined-contribution and defined-benefit pension plans.
> Explain what is meant by tax-sheltered investment growth on money invested through qualified retirement accounts.
> Distinguish among after-tax money put into investments, pretax money, and vesting.
> List two ways to finance a real estate investment.
> Comment on the wisdom of buying a timeshare as an investment.
> Summarize how the discounted cash-flow method helps determine the right price to pay for a real estate investment.
> Summarize the effects of loads and fees on investment returns.
> Which is better for most investors, load or no-load funds? Why?
> Give three examples of fees or charges associated with load funds.
> Where can you go to look up stock symbols and prices?
> Some credit cards offer rewards points or a cash back reward for all purchases made on the card. Which rewards card would you prefer and why?
> Distinguish between the Dow Jones Industrial Average and the S&P 500.
> Name two places where you can go to find information about a company?
> How does one use a stock screening tool?
> Explain how transactions costs and leverage may increase or decrease investment returns.
> Summarize three other types of investment risks that seem important to you.
> Explain market risk, what causes it, and how it fits in one’s portfolio.
> What is random risk, and how does it get reduced?
> Explain how guaranteed renewability for term life insurance and guaranteed insurability for cash-value insurance protect insured people who develop serious health conditions.
> Distinguish between an automatic premium loan and a waiver-of-premium option in a life insurance policy.
> Identify three of the five settlement options for the payment of the proceeds of a life insurance policy to its beneficiary.
> What benefits do you see in leasing a vehicle? What negatives exist when leasing?
> What are nonforfeiture values and why are they important?
> Distinguish between an incontestability clause and a suicide clause in a life insurance contract.
> Distinguish among the owner, the insured, the beneficiary, and the contingent beneficiary of a life insurance policy.
> Distinguish among an exclusion, deductible, coinsurance, and a copay.
> List the three questions you should ask yourself when determining the policy limits for a homeowner’s insurance policy.
> Identify four types of personal property for which the covered loss is limited to a specific dollar amount under standard homeowner’s insurance policies (see Table 10-1). Table 10-1: Table 10-1 Summary of Homeowner's Insurance Poli
> Name the three types of homeowner’s insurance policies for most residences: HO-3, HO-4, and HO-6.
> Give three examples of liability protection under homeowner’s insurance policies
> List the four types of losses covered under the property insurance portion of a homeowner’s policy.
> Do you think all of the steps in the planned buying process are used when buying simple everyday products (such as a loaf of bread or a half-gallon of milk), or are they used only when buying big-ticket items? Why, or why not?
> Distinguish among loan estimate, closing disclosure, and uniform settlement statement.
> What steps are involved with agreeing to terms with a seller?
> When using a Realtor® why should you be cautious when working with a seller’s agent?
> Distinguish between the two rules of thumb that lenders use to assess housing affordability.
> What is involved in cleaning up your credit to buy a home?
> What is dealer holdback and why is it important?
> Why should a shopper negotiate?
> Why should you make major purchase decisions at home using a decision-making matrix?
> What three aspects of a vehicle purchase should be negotiated? In what order?
> Where would to go to obtain an installment loan to finance a vehicle if you had a good credit rating and wanted to pay a low interest rate?
> Identify topics that you would cover in your letter of last instructions.
> What is a sales finance company and how does it work?
> In the text example, what can Erik do to save more for his retirement?
> List the steps in the process of estimating your retirement savings goal in today’s dollars.
> Summarize the special income tax regulations on renting out vacation homes.
> Briefly explain how the interest paid on the mortgage of a real estate investment reduces one’s income taxes.
> Summarize how depreciation is used to reduce the taxable income from a real estate investment.
> Explain why investors like index mutual funds and exchange traded funds.
> Distinguish among mutual funds with an income objective, growth objective, and growth and income objective.
> Distinguish between a managed mutual fund and an unmanaged mutual fund.
> What are the five steps in figuring a potential rate of return to invest in a stock?
> Of all the mistakes that people make when planning for retirement, which one might be likely to negatively affect your retirement planning the most? Give reasons why.
> Choose three measures of corporate earnings that you might use when selecting a stock in which to invest and say why you like them.
> What is fundamental analysis and why is it popular?
> Define beta and explain what it means.
> Distinguish between the terms income stocks and growth stocks.
> Comment on how investing differs for both short and long-term investments.
> Distinguish between cash-value life insurance with a fixed return and with a variable return.
> Explain why the amount of “insurance” declines over time under a cash-value life insurance policy.
> Describe the benefit of buying guaranteed renewable term insurance.
> Explain why the premiums for term insurance are always so much lower than those of cash-value life insurance.
> Distinguish between term life insurance and cash-value life insurance.
> What are your thoughts on this comment? “Younger workers today face some serious challenges in deciding where to invest their retirement funds.”
> Distinguish between the government health program called Medicare and Medicaid.
> What is a high-deductible health insurance plan and how does it work with a health savings account (HSA).
> Distinguish between a traditional health insurance plan and a health maintenance organizations (HMO).
> Summarize how an employer’s group health care plan provides coverage to employees.
> Explain how managed care has reduced the cost of health care in America.
> Differentiate between independent agents and exclusive agents.
> Summarize how companies select among insurance applicants.
> Summarize how to use deductibles, coinsurance, hazard reduction, and loss reduction to lower the cost of insurance.
> Why is the principle of indemnity so important to insurance sellers?
> Distinguish among the three types of hazards.
> Do you know anyone who has estimated his or her retirement savings goal in today’s dollars? Offer two reasons why many people do not perform those calculations. Offer two reasons why it would be smart for people to determine a financial target
