I Need Help
1. Think of a real or made up but realistic example of a pure risk that you or someone you know may face, and then answer the questions below.
a. Describe the specific risk. The specific risk is losing a job
b. What sort of negative outcomes are possible for this type of risk? You won’t have any money because you won’t get paid.
c. Would this risk be likely to create unexpected expenses? Why or why not? I don’t think so , there is no other extra bills you have to pay.
d. Describe at least one way you could protect yourself against this risk. One way you could protect yourself is to get insurance.
2. Think of a real or made up but realistic example of a speculative risk that you or someone you know may face, and then answer the questions below.
a. Describe the specific risk. Invest in something to make money
b. What sort of negative outcomes are possible for this type of risk? One negative outcome is losing all your money.
c. What sorts of positive outcomes are possible for this type of risk? One positive outcome is that you can gain money.
d. Would this risk be likely to create unexpected expenses? Why or why not? No they only thing you are putting money on is the investment I would think.
e. Describe at least one way you could protect yourself against this risk. One way you could protect yourself against is by diversifying your investments among many different types
3. Imagine that you are a parent with young children. You want to get life insurance to protect your children financially until they are old enough to produce their own incomes. Would term life insurance or permanent life insurance be a better choice in this situation? Why?
4. Describe two types of insurance that you have or are likely to have at some point in your life. What risks are these insurance plans protecting you against? Why do you think these types of insurance are important?
5. List four valuable items that might be kept in an apartment or house. Next to each item,
a. Describe the specific risk. The specific risk is losing a job
b. What sort of negative outcomes are possible for this type of risk? You won’t have any money because you won’t get paid.
c. Would this risk be likely to create unexpected expenses? Why or why not? I don’t think so , there is no other extra bills you have to pay.
d. Describe at least one way you could protect yourself against this risk. One way you could protect yourself is to get insurance.
2. Think of a real or made up but realistic example of a speculative risk that you or someone you know may face, and then answer the questions below.
a. Describe the specific risk. Invest in something to make money
b. What sort of negative outcomes are possible for this type of risk? One negative outcome is losing all your money.
c. What sorts of positive outcomes are possible for this type of risk? One positive outcome is that you can gain money.
d. Would this risk be likely to create unexpected expenses? Why or why not? No they only thing you are putting money on is the investment I would think.
e. Describe at least one way you could protect yourself against this risk. One way you could protect yourself against is by diversifying your investments among many different types
3. Imagine that you are a parent with young children. You want to get life insurance to protect your children financially until they are old enough to produce their own incomes. Would term life insurance or permanent life insurance be a better choice in this situation? Why?
4. Describe two types of insurance that you have or are likely to have at some point in your life. What risks are these insurance plans protecting you against? Why do you think these types of insurance are important?
5. List four valuable items that might be kept in an apartment or house. Next to each item,