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Financial Planning Courses: Insurance and Risk Management

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1.
Insurance can help you manage _______.
Choose wisely. There is only one correct answer.
Financial loss due to risk. Insurance is not designed to help you manage risk itself, but rather the financial losses caused by risk.
2.
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.
3.
If you injure yourself at work and become unable to perform your duties, what form of insurance is designed to pay you benefits for a certain length of time?
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Disability insurance. Disability insurance provides financial benefits if you should become unable to work due to a disabling illness or injury.
4.
Before buying an insurance policy, you should determine _______.
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How much of the risk you can assume yourself. Determining this will affect the coverage you select and the premiums you pay.
5.
Insurance protects a person from risks.
Choose wisely. There is only one correct answer.
False. Insurance cannot protect a person from risk; instead, it protects a person from financial losses caused by risks.