6
QuizMultiple Choice

Principles of Financial Planning — Unit test

Question 6 • Personal Finance - EL3403

What is one cost of avoiding insurance?

Answer
A
falling into debt if faced with a serious problem
B
not benefitting from insurance deductibles
C
not being able to purchase a car or home
D
facing increased probability of accidents

Explanation

Without insurance, you must pay the full cost of a serious illness, accident, or other covered problem yourself. A large unexpected bill can exceed your savings and put you into debt, so the correct choice is falling into debt if faced with a serious problem.

AI-written and checked against the verified answer.

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