Final answer:
The best words to complete each sentence are Insurance, Premium, Deductible, and Coverage Limit. Together, these terms define the protection, payment structure, consumer cost-sharing, and maximum payout related to insurance policies.
Step-by-step explanation:
Insurance is a financial service that offers protection from potential financial loss due to unforeseen damage, injury, or loss. Persons or organizations with insurance make regular premium payments to an insurance company, which then provides compensation to those who suffer an insured event. A deductible is the amount a consumer may be required to pay out-of-pocket before the insurance company covers the remaining costs of a claim. On the other hand, the coverage limit defines the maximum dollar amount that an insurer agrees to pay toward a claim under a policy.
Thus, the correct answer to complete each sentence is:
- Insurance is a financial service that offers a kind of protection in the event of unforeseen damage, injury, or loss.
- Premium is the cost of a type of insurance that is paid at regular intervals.
- Deductible is money a consumer must pay to share the costs of a payout.
- Coverage limit is the maximum dollar amount that an insurer will pay toward a claim under a policy.
Various types of insurance exist, including health insurance, car insurance, house or renter's insurance, and life insurance, all catering to different aspects of financial security.