E CS 24

Risk Management

There are various strategies to help protect personal assets and wealth.

Content Statement

24. Health, disability and life insurance protect against risks associated with increased expenses and loss of income.

Content Elaborations

Insurance is designed to weigh the costs of coverage vs. the risk of financial loss. Health insurance takes into consideration certain factors (e.g., age, family history, lifestyle) to develop a cost structure. Disability and life insurances also consider life expectancy rates, personal habits (e.g., smoking, drinking), family history and current lifestyle.

Different insurance tools can build and retain wealth or simply provide coverage in case of loss. Often, term life insurance is a benefit of employment, while both health and disability coverage are available with different options (e.g., family coverage, co-pays).

Expectations for Learning

Identify the different kinds of insurance and explain how they protect consumers.