Question

T or F:

1. Homeowners insurance protects homeowners against losses from theft, damage to buildings, and liability for accidents occurring on your property.

2. Monthly housing expenses like rent or mortgage should not be in excess of 25% of take home pay.

3. In the U.S. federal estate tax applies to all estates over $3,000,000.

4. HIPAA protects people's ability to obtain continued health insurance after they leave a job or retire.

5. Whole life insurance provides the insured with a way to save money for their future.

Answer 1

1) True

Homeowners insurance covers the perils and damages that happenes to the home. It covers the repair or accidents that happens related to property. It may also cover if a visitor is injure at your home or if you accidentally damage another's property.

2)True

You should not spend more than 25% of take home pay because if you pay more on this it will be a stess on your budget for other expenses like education, car, furniture etc.

3)False

There are different tax rate slabs meeting the criteria of value range. More the value of eastate, higher the tax rate.

4)True

Health Insurance Portability and Accountability Act (HIPAA) protects the capability of continued health insurance even after loosing the job or retirement.

5)True.

Whole life insurance is a type of permanent life insurance that accumulates cash value.