Identify insurance as a risk-management strategy.

Identification should include a definition of the term risk management, an explanation of the ways insurance can reduce financial risk, and an analysis of the advantages and disadvantages of insurance as a risk-management strategy in financial planning to include

• evaluating insurance as a risk-management strategy
• distinguishing among the types, costs, and benefits of insurance coverage, including automobile, life, property, health, and professional liability
• explaining the roles of insurance in financial planning.

Process/Skill Questions:

• How can insurance reduce financial risk personally or in a business?
• What are some advantages and disadvantages in using insurance as a risk-management strategy?
• What are some of the roles of insurance in financial planning?