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Financial Planning Courses: Insurance and Risk Management

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1.
Before buying an insurance policy, you should determine _______.
Choose wisely. There is only one correct answer.
How much of the risk you can assume yourself. Determining this will affect the coverage you select and the premiums you pay.
2.
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.
3.
There are many ways to manage risks in your financial life. For example, not taking any steps at all to reduce the risk of financial loss is called _______.
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Assuming risk. In this scenario, you assume the risk yourself, along with having to pay for the financial consequences.
4.
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.
5.
Underestimating the amount of insurance coverage you need can result in _______.
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Very large out-of-pocket expenses. This is why it is necessary to estimate your insurance coverage accurately.