Question

People have many different motivations for choosing not to buy insurance. From the given situations, which motivations are reasonable, and which are unreasonable? Drag each tile to the correct location. Lucas does not want to buy life insurance because he thinks it is too ____. [Option 1]. Alice always practices good dental hygiene, and she has emergency savings, so she chooses not to purchase dental ____. [Option 2]. Bob purchases only the minimum required car insurance because his car is old and he rarely ____. [Option 3]. Sarah is athletic and takes good care of her body, so she chooses not to purchase disability ____. [Option 4]. Emily wants to increase the amount of money she takes home each month from work, so she chooses not to purchase health ____. [Option 5]. Jane chooses not to insure most of her property because she thinks her belongings aren't that important.

1) expensive
2) insurance
3) drives
4) insurance
5) insurance

Answer 1

Reasonable motivations for not buying insurance include finding it too expensive, practicing good dental hygiene with emergency savings, and having a low-risk car usage. Unreasonable motivations include wanting to increase take-home pay and underestimating the value of belongings.

Step-by-step explanation:

Lucas does not want to buy life insurance because he finds it too expensive. This motivation is reasonable because life insurance can be costly and not everyone can afford it.

Alice, on the other hand, practices good dental hygiene and has emergency savings, so she chooses not to purchase dental insurance. This motivation is also reasonable because she may feel that her good dental habits and savings provide sufficient protection for her dental health.

Bob purchases only the minimum required car insurance because his car is old and he rarely drives. This motivation is also reasonable because if Bob rarely uses his car and it is old, there may be less risk of accidents or damage that would require comprehensive insurance coverage.

Sarah is athletic and takes good care of her body, so she chooses not to purchase disability insurance. This motivation is reasonable because Sarah may feel that her healthy lifestyle reduces the likelihood of becoming disabled.

Emily wants to increase her take-home pay, so she chooses not to purchase health insurance. This motivation is unreasonable because having health insurance is important for financial protection in case of unexpected medical expenses.

Jane chooses not to insure most of her property because she thinks her belongings aren't that important. This motivation is unreasonable because all belongings have value and can be costly to replace in case of theft or damage.