When is it typically a good economic decision to purchase a particular insurance policy?A.When the potential benefits are more valuable than the cost of the premiumsB.When the deductible is close to matching the cost of potential benefitsC.When other insurance companies offer similar coverage for lower premiumsD.When there is a very small chance that an insurance claim will need to be made

Why do people typically purchase insurance policies?A.They would not be able to pay for major expenses without insurance.B.They believe insurance policies will increase in value over time.C.They anticipate that they will never have to pay their deductibles.D.They calculate that their insurance premiums will be greater than their benefits.

When we purchase essential insurance (e.g., healthinsurance), we are often offered a range of “deductibles,” the pre-specifiedamount that we must pay on a claim before the insurance company will pay thebalance. Assuming that the deductibles themselvesare for dollar amounts that we could afford without significant financial hardship, whichdeductible should we select?1 point Always select the policywith the highest deductible It depends on a number of factors; cannot sayfor sureAlways select the policy with the lowestdeductible

Which of the following is an advantage to using a traditional health insurance plan?Low premiumsNo deductibleNo maximum amount that must be spent before discounts applyFreedom to use any healthcare provider

What is the main factor that motivates people to purchase insurance?A.They hope the money they invest in insurance will increase in value.B.They want to avoid paying for major unexpected expenses.C.They believe they will never have to pay insurance deductibles.D.They think their premiums will cost more than their benefits.

What is the main reason that people purchase insurance policies?A.They want to reduce the cost of their student or personal loans.B.They want to invest money in insurance to grow it over time.C.They want to avoid paying for major unexpected expenses.D.They want to avoid increasing their monthly premiums.