8
QuizMultiple Choice

Principles of Financial Planning — Unit test

Question 8 • Personal Finance - EL3403

In some cases, it is safe to avoid insurance because

Answer
i
it is too expensive.
i
it may not be needed.
o
only one person is at risk.
o
one is already in debt.

Explanation

Insurance is useful for protecting against risks that could cause a significant financial loss. In some cases, the risk is small or the protection is unnecessary, so it may be reasonable to avoid buying that insurance. Being expensive alone does not make insurance safe to skip, and having only one person at risk or already being in debt does not establish that it is unnecessary. The correct choice is “it may not be needed.”

AI-written and checked against the verified answer.

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