Insurance_and_Risk_Classifications_Flashcards
(11 cards)
What is property insurance?
Insurance that covers damage to or loss of property.
What is liability insurance?
Insurance that protects against legal liabilities to third parties.
What is life insurance?
Insurance that pays out a sum of money upon the insured’s death.
What are annuities often considered as?
Annuities are often considered longevity insurance.
What are some examples of health-related insurance types?
Health insurance, disability insurance, long-term care insurance.
What is the role of a financial planner when helping clients with risk management?
Identify risks, examine solutions, and implement a tailored plan.
What should a financial planner do when a client cannot qualify for insurance?
Consider alternate ways to protect the client.
What are static risks?
Risks such as earthquakes and floods, which occur with regularity and can be insured.
What are dynamic risks?
Risks resulting from changes in the economy, such as inflation, not typically covered by insurance.
What are fundamental risks?
Risks that affect a large group of people, like recessions or earthquakes.
What are particular risks?
Risks that affect individuals or small groups of people.
