Assignment 6 Personal Finance

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)

b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 1.0 points)

c. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences. 1.0 points)

d. Describe at least one way you could protect yourself against this risk. (1-3 sentences. 1.0 points)

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)

b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 0.5 points)

c. What sorts of positive outcomes are possible for this type of risk? (1-3 sentences. 0.5 points)

d. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences. 1.0 points)

e. Describe at least one way you could protect yourself against this risk. (1-3 sentences. 1.0 points)

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)

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)

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)

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