1. What is the relationship between insurance and successful financial management? Why is insurance important?
- The relationship between insurance and successful financial management is important because while successful financial management helps with unexpected situations requiring emergency planning, insurance is a contract made to ensure that your assets are protected and damage paid for if that event occurs.
2. Consider your home and possessions. What types of risks do you face? What insurance would you recommend to someone in a similar location?
- You could be risked by fires, high winds, hail, and lightning damage to protect your possessions you would need Homeowners insurance. To be protected from natural disasters you may need additional coverage (if natural disasters occur often).
3. What are personal, property, and liability risks? What are examples of personal, property, and liability risk?
- Some personal, property, and liability risks would be poor health and old age, having your property damaged, and being responsible for something that happens that could lead to a lawsuit.
4. Why is estate planning important?
- Estate planning can be important because estate planning is about protecting your loved ones, transferring your assets to heirs.
5. What is the principle of indemnity? Why is this principle important?
- The principle of indemnity is compensation, ensuring that you will not lose any finances.