Wolfgang is a 43-year-old married father of 3 who earns a good income working as a sales manager in the textile industry. His wife Angela is a stay-at-home mother. Wolfgang knows that his family would suffer financially if he were to die prematurely. He calls an insurance agent to purchase a life insurance policy to protect his family. What risk strategy is Wolfgang implementing? Select one correct answer from the list 1 Risk avoidance. 2. Risk reduction. 3. 4 Risk retention. Risk transfer. K ОО Sarabeth, a life insurance agent, meets with Adrienne to evaluate her life insurance needs. Adrienne is a single mother of two young children, ages 5 and 7. Adrienne wants to ensure that if she dies, the children will be financially covered until the youngest is 25. Since she's expecting the children's financially secure godparents to take the children in if she dies, Adrienne figures each child would need $5,000 per year to meet their needs. Which of the following options should Sarabeth advise Adrienne to purchase to best meet her insurance needs? Select one correct answer from the list 1. $100,000 20-year term life insurance. 2. $200,000 20-year term life insurance. $100,000 25-year term life insurance. 4. $200,000 25-year term life insurance. 3. O O O
Wolfgang is a 43-year-old married father of 3 who earns a good income working as a sales manager in the textile industry. His wife Angela is a stay-at-home mother. Wolfgang knows that his family would suffer financially if he were to die prematurely. He calls an insurance agent to purchase a life insurance policy to protect his family. What risk strategy is Wolfgang implementing? Select one correct answer from the list 1 Risk avoidance. 2. Risk reduction. 3. 4 Risk retention. Risk transfer. K ОО Sarabeth, a life insurance agent, meets with Adrienne to evaluate her life insurance needs. Adrienne is a single mother of two young children, ages 5 and 7. Adrienne wants to ensure that if she dies, the children will be financially covered until the youngest is 25. Since she's expecting the children's financially secure godparents to take the children in if she dies, Adrienne figures each child would need $5,000 per year to meet their needs. Which of the following options should Sarabeth advise Adrienne to purchase to best meet her insurance needs? Select one correct answer from the list 1. $100,000 20-year term life insurance. 2. $200,000 20-year term life insurance. $100,000 25-year term life insurance. 4. $200,000 25-year term life insurance. 3. O O O
Chapter10: Managing Property And Liability Risk
Section: Chapter Questions
Problem 3FPC
Related questions
Question
8
Transcribed Image Text:Wolfgang is a 43-year-old married father of 3 who earns a good income working as a sales manager in
the textile industry. His wife Angela is a stay-at-home mother. Wolfgang knows that his family would
suffer financially if he were to die prematurely. He calls an insurance agent to purchase a life insurance
policy to protect his family.
What risk strategy is Wolfgang implementing?
Select one correct answer from the list
1 Risk avoidance.
2. Risk reduction.
3.
4
Risk retention.
Risk transfer.
K
ОО
Transcribed Image Text:Sarabeth, a life insurance agent, meets with Adrienne to evaluate her life insurance needs. Adrienne is a
single mother of two young children, ages 5 and 7. Adrienne wants to ensure that if she dies, the
children will be financially covered until the youngest is 25. Since she's expecting the children's
financially secure godparents to take the children in if she dies, Adrienne figures each child would need
$5,000 per year to meet their needs. Which of the following options should Sarabeth advise Adrienne to
purchase to best meet her insurance needs?
Select one correct answer from the list
1. $100,000 20-year term life insurance.
2. $200,000 20-year term life insurance.
$100,000 25-year term life insurance.
4. $200,000 25-year term life insurance.
3.
O O
O
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