Financial Planning Courses: Insurance and Risk Management

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1.
If you take out a loan and then lose your job shortly afterward, what form of insurance would protect you financially if you default on your loan?
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Credit insurance. Credit insurance is made for scenarios like this.
2.
It is possible to determine the mathematical probability of risk occurring and the financial risk at stake.
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True. This is what insurance actuaries do. The results of their calculations are factored into the premiums you pay.
3.
Liability insurance would cover a situation where another person sued you.
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True. This is the purpose of liability insurance.
4.
It is possible to eliminate all risk in personal finance.
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False. Though it is possible to minimize it, no one has yet succeeded in eliminating risk entirely.
5.
You should only insure property for losses you cannot afford.
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True. Unless you want to deliberately waste money on premiums, you should determine how much financial loss you can afford, then insure only that which you cannot afford. This will help you keep your premiums as low as possible.