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Financial Planning Courses: Insurance and Risk Management

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1.
When you compare two insurance policies, the one with the higher premium is always better.
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False. A more expensive policy may not be better (or worse) than a less expensive one. They may provide different benefits.
2.
Financial risks can be caused by _______.
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Any of the above. Anything unexpected that has an adverse effect on your financial goals is financial risk.
3.
What section of an insurance contract lists modifications to the policy?
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Endorsements. Endorsements, also called riders, can add or remove coverage from the policy.
4.
If you live in an apartment, what form of insurance would cover your belongings?
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Renter's insurance. Renter's insurance is for those who rent homes, such as apartments.
5.
Which of the following is a way to manage risk?
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All of the above. Risk is all around us, and we manage it by assuming it, avoiding it, sharing it, or transferring it to someone else.