Final answer:
True. Insurance can protect your existing net worth and also increase the likelihood that you will be able to increase your net worth in the future.
Step-by-step explanation:
True. Insurance can protect your existing net worth and also increase the likelihood that you will be able to increase your net worth in the future.
For example, let's say you have a car insurance policy. If your car gets damaged in an accident, the insurance company will cover the cost of repairs. This protects your existing net worth because you don't have to spend your own money on repairs. Additionally, having car insurance increases the likelihood that you will be able to increase your net worth in the future because you can drive your car without worrying about expensive repairs draining your finances.
Overall, insurance plays a crucial role in protecting and potentially growing your net worth.