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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?
Choose wisely. There is only one correct answer.
Credit insurance. Credit insurance is made for scenarios like this.
2.
The best way to shop for insurance is to buy a policy with the lowest premium.
Choose wisely. There is only one correct answer.
False. The premium reflects the benefits offered, so a low-cost policy may not have the same benefits of a higher-premium policy.
3.
Anything _______ that has an adverse effect on your financial goals is financial risk.
Choose wisely. There is only one correct answer.
Unexpected. Financial risk involves events that are unexpected.
4.
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.
5.
It is possible to eliminate all risk in personal finance.
Choose wisely. There is only one correct answer.
False. Though it is possible to minimize it, no one has yet succeeded in eliminating risk entirely.