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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.
Choose wisely. There is only one correct answer.
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 form of insurance would pay for the costs of assisted living?
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Long-term care insurance. This form on insurance covers costs of caring for you over a long period.
4.
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.
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.