I need help The main purpose of buying insurance is tohave financial protection in case of a loss.eliminate the risk of having a loss.guarantee a high credit score.save for major purchases such as a home.

Answered: The main purpose of buying insurance is…

The main purpose of buying insurance is to have financial protection in case of a loss. O eliminate the risk of having a loss. guarantee a high credit score. save for major purchases such as a home.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter10: Managing Property And Liability Risk

Section10.2: Understanding How Insurance Works

Problem 4CC

See similar textbooks

Related questions

Q: For automobile insurance, Describe how risk can be managed. Evaluate the risks in society.…

A: Automobile Insurance: When you get auto insurance, you enter into a contract with the insurance…

Q: Which of the following is NOT a business of life/non-life insurance firm? a. Property/casualty…

A: Life insurance: Phrase life insurance, moreover known as pure life insurance, is life protections…

Q: provides loans for prospective home buyers amount paid for an insurance policy provide financial…

A: The stock market functions according to the buyer and seller's transactions. All the price and…

Q: Is disaster insurance unfair to insurance companies ? Explain your answer and provide an example.

A: Disaster Insurance The meaning of disaster insurance is is different from the life insurance which…

Q: Most life insurance riders are expensive. O True False

A: An insurance policy is purchased in order to receive coverage for damages or losses that might occur…

Q: It pertains to a risk management technique when acquiring a life insurance. * risk avoidance risk…

A: One of the risk management technique is Risk Transfer where one party transfer the risk to another.…

Q: A life insurance company worries that people with low risk of dying will not buy insurance because…

A: The insurance company will generally end up losing a lot of money. If an insurance company takes an…

Q: How does Life and Non Life Insurance can save or protect the assets of its policy holders? Cite at…

A: Life Insurance and Non-Life Insurance are the policies provided to the policyholders for protecting…

Q: Risk and premiums for homeowners policies look at all of the following, EXCEPT: a) The results of…

A: The question is based on the concept of homeowners insurance policies and its premium calculation.

Q: Describe how an unrelated tenant in common or joint tenant should protect him- or herself from…

A: Please find the answer to the above question below:

Q: II. Case Application. Answer the following situations by applying what you have le the previous…

A: Insurance is important and necessary part of life due to too much risk involved in the life of…

Q: Life insurance can be one of the most complex purchases a consumer ever makes. It is also an…

A: Life Insurance is defined as a deal between the insurance firm and the insured, in which the life…

Q: MATCH WITH THE BEST ANSWER Liability Insurance Mistakes happen. You, your employees, your…

A: Insurance: It is an agreement between two parties where a party undertakes to cover the other party…

Q: есе for Bad Debts ivable able nsurance Fixtures d Depn. - Furniture

A: As you have posted multiple independent questions, we are answering the first question. Kindly…

Q: Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons…

A: In finance when health care related policies are implemented then a cost benefit analysis is done by…

Q: Loans are available from term life insurance policies. a. True b. False

A: Policy loans are not available from term life insurance policies. Because there is no cash value to…

Q: If a consumer with a relatively low credit score applied for a loan from your bank, what other…

A: WHAT IS CREDIT CRITERIA- Credit criteria area unit the factors employed by lenders to work out…

Q: A friend tells you about a plan for the formation of an insurance company that will issue insurance…

A: Insurance can be provided for things probability of which occurrence is minimum So that minimum…

Q: tell me why the use of reinsurance contributes to the solvency of the ceding insurer.

A: By ceding a portion of their risk, ceding companies reduce their overall risk exposure and…

Q: Disadvantages of Whole Life insurance include... Group of answer choices -More expensive than Term…

A: Whole life insurance guarantees payment of a stated benefit for the life of the insured person. It…

Q: Name the coverage for auto insurance "Pays for damage or loss of your car if you are in accident." O…

A: The answer and explanation can be seen below:

Q: Prepaid insurance is what it sounds like.

A: The prepaid expenses are the expenses that are paid in advance but not yet due for payment.

Q: The _______________ problem is when customers who are most likely to have a claim against an…

A: In a business, an adverse selection occurs where the knowledge distribution between the buyer and…

Q: When estimating the loss reserves in car insurance, the ________________ is used to assign a loss…

A: Insurance companies provide insurance for vehicles and personal based on that premium are charged…

Q: Which of the following is a disadvantage of credit OR buying on using credit? * a Instant…

A: The company is making transaction on a daily basis. These transactions can be done in cash or credit…

Q: Which of the following would result in a soft credit inquiry? o mortgage loan application O…

A: Soft credit inquiry means inquiry of your own credit scores. This inquiry will not affect the credit…

Q: Why are people often willing to pay more for insurance than the expected valueof the coverage?

A: Insurance coverage is the amount of risk covered for an individual which are assured by insurance…

Q: (Based on Appendix 12A) Whole-life insurance policies typically can be surrendered while the insured…

A: Cash surrender value: Companies purchase whole-life insurance policies on the lives of the key…

Q: One of the purposes that deductible are used in insurance policies is to O eliminate coverage for…

A: In insurance, deductibles are expenses that a person has to bear by him/herself before the benefits…

Q: e insurance and non life insurance saves the assets of its pilicy ho

A: Life insurance and nonlife insurance are two different category of insurance schemes.

Q: Please give and explain the numerical example of adverse selection that arises in life insurance…

A: In Insurance adverse selection refers to situations in which an insurance company extends insurance…

Q: STATE: Which of the following statements regarding homeowner's irsurance is true A. The listing…

A: Homeowner's insurance policy is the insurance policy for your home. It generally covers any…

Q: d debiting Prepaid Insurance for

A: When the entire amount is recorded as prepaid expenses and paid in cash, then, the journal entry is:…

Q: Placing the insured in the same position financially as he or she or it was in immediately before…

A: The insurance companies are the form of financial institutions who provide coverage amount to the…

Q: Bob, risk manager from Travelers, mentioned that Travelers has the following two insurance programs,…

A: Here provide the details of the insurance coverage which are incurred for the Travelers company for…

Question

I need help

The main purpose of buying insurance is to
have financial protection in case of a loss.
eliminate the risk of having a loss.
guarantee a high credit score.
save for major purchases such as a home.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When an individual makes a purchase without considering the financial consequences of that purchase, he/she ignores the _____________ aspect of financial planning. borrowing risk management spending retirement and estate planning obtaining All of these choices are correct. Explain answer and cite sources for answer.
Name a peril that is often excluded from an home or auto insurance policy. Why is the peril included in an insurance policy
Find what insurance will cover of your bodily injury find what insurance will pay for your friend's bodily injury find what your insurance will pay for neighbor's automobile damage
Kindly help Which of the following statements about life insurance is NOT accurate? a) permanent insurance puts a portion of the premium paid into investment which the insured then has the potential to cash in and recoup, whereas the premium paid for term insurance is simply a sunk cost for the insured . b) permanent insurance guarantees that the policy will pay out the face value to the beneficiary upon the death of the insured , whereas term insurance won't pay out anything at all once the term has finished. c) Term insurance is almost always less expensive than permanent insurance- both the monthly premium amount as well as the amount typically spent on insurance overall. d) Term insurance is simple life insurance policy that involves a less complicated contract with fewer provisions and exemptions , whereas permanent is the type of insurance that you must take care in reading the detailed fine print in the policy
Give typing answer with explanation and conclusion Property insurance protects you from financial losses resulting from the damage to or destruction of your property or possessions. True False
Which of the following statements is correct about perils in property insurance policies? An (HO-2) form provides coverage for more perils than a (HO-3) Form. a Peril is defined as the cause of a loss A peril increases the chance of a loss a property insurance policy must contain a list of all cover perils
When estimating the loss reserves in car insurance, the ________________ is used to assign a loss value to each claim. This is because the individual loss amounts are insignificant while the number of claims is large. a. Judgment method b. Loss ratio method c. Average value method d. Tabular method
Why do insurance companies offer discounts on new houses opposed to old ones?
Risk and premiums for homeowners policies look at all of the following, EXCEPT: a) The results of the title search b) The property being insured c) The person buying the policy d) The type and amount of coverage