In your own words, describe how insurance works. How can an insurance company afford to pay someone $10,000 to repair an automobile damaged in an accident when the owner has contributed less than $1,000 in insurance premiums?

You are sick for 6 months and cannot go to work, what types of insurance would cover a portion of your lost wages?

Jerry has medical insurance with the following coverage: annual deductible of $200, 80/20 co-pay, annual out-of-pocket limit of $1,000, and a lifetime limit of $1 million. Jerry has medical problem which totals $6,000 in one calendar year.

 How much will Jerry have to pay out of his own pocket?