Personal Finance

Topics: Insurance, Term life insurance Pages: 5 (1291 words) Published: June 26, 2013
Assignment 6: Insurance and Consumer Protection
(26.0 points)
 
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. (1-3 sentences. 0.5 points)  loosing a job
b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 1.0 points) you wont have any money because you wont get paid
 
c. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences. 1.0 points) I don’t think so. Theres no extra bills you would have to pay.  d. Describe at least one way you could protect yourself against this risk. (1-3 sentences. 1.0 points)  by getting 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. (1-3 sentences. 0.5 points)  investing in something to make money
b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 0.5 points) loosing all of your money
c. What sorts of positive outcomes are possible for this type of risk? (1-3 sentences. 0.5 points) you can gain money. 
d. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences. 1.0 points) no, the only thing you are putting money on is the investment. e. Describe at least one way you could protect yourself against this risk. (1-3 sentences. 1.0 points)  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? (2-4 sentences. 1.0 points)  Term life insurance so when they turn 18 they can be on their own insurance.

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? (4-8 sentences. 3.0 points)  Health insurance, it protects you against the costs created by sickness or injury by helping you to pay for your medical bills and expenses. I think this is important because if you were to get sick and don’t have the money to pay for your medical bill the insurance will help a lot by paying hopefully most of the bill. Also, property insurance, It helps cover property that you own or rent. I think this is important because if a tornado happens and you need a new roof your property insurance can help pay for any damage done to your home

5. List four valuable items that might be kept in an apartment or house. Next to each item, write the estimated dollar amount that each item might be worth. (Complete sentences are not necessary. 1.0 points) Tv- $10574.00

Oven- $1850.00
House phone- $69.99
Computer- $1299.99
 
6. In your Section_6 folder, navigate to and open the Example_Insurance_Application, and then complete the steps below to save a copy of the file with your initials in your Section_6 folder.  
a. Click the File menu, and then Click Save a Copy.
 
b. If a Save a Copy dialog box appears, click Save a Copy.
 
c. Make sure the Save in drop-down list is set to your Section_6 folder. If not, click the drop-down list, then click Local Disk (C:), then double-click your course folder, and then double-click the Section_6 folder.  d. In the Name: field, type Example_Insurance_Application followed by your initials.  

e. Click Save.
 
7. Follow the instructions below to fill out the Example_Insurance_Application for Jessie Robinson. This is an application for renter's insurance. (4.0 points for completing the form correctly according to the instructions below)  

a. Fill out the Applicant Information section of the form using the name...
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