Risk and Financial Decision Making

Insurance is one of those pesky expenses that you may complain about, but will be so grateful for when you actually need it. Unfortunately, accidents happen everyday, and having insurance ensures those accidents don’t drain your savings. 

There are numerous types of insurance to protect individuals. To make things simpler, they are broken down into four main categories: Car Insurance, Property Insurance, Health Insurance, and Life Insurance. Within each category, there are several specific types of insurance to cover the different kinds of risks. When choosing an insurance plan, it is important to look at the premium and the deductible, as these numbers reflect your financial contribution to the plan. If you’re a driver, car insurance can be a hefty expense, so make sure to carefully read over your plan. If you are a young driver, have an expensive car, or are prone to many accidents, you’ll likely find yourself paying a higher premium. 

If you don’t own a car or home, that doesn’t mean you don’t need insurance. Renter’s insurance is just as important as homeowner’s insurance, and can protect your belongings in case of theft or damage. Similarly, health insurance and life insurance are important to consider at any age. In this unit, we discuss the different types of insurance designed to protect against different types of risk, and why it is important to select an insurance plan that protects yourself and your assets.