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Financial Planning Courses: Insurance and Risk Management

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1.
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.
2.
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.
3.
The more risk you transfer to an insurance company, the _______ your premiums will be.
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Higher. Premiums will rise to compensate the insurance company for taking on your risk.
4.
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.
5.
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.