, as the policyholder takes on more of the initial financial risk.
Understanding risk, the purpose of insurance, deductibles, premiums, and the concept of pooling risk. ngpf 8.1 intro to insurance answer key
Pay Deductible: $500 (Remaining bill: $4,500) Step 2: Insurance pays 80% of $4,500 = $3,600 Step 3: You pay 20% (co-insurance) of $4,500 = $900 Total You Pay: $500 + $900 = $1,400 , as the policyholder takes on more of
What type of insurance covers medical expenses incurred due to illness or injury? Answer: Health insurance. the purpose of insurance