Insurance. a. Name the primary reason why people buy insurance. b. Draw a graph of the...

Insurance.

a. Name the primary reason why people buy insurance.

b. Draw a graph of the conventional model of demand for insurance where utility is a function on income.

c. What does the graph illustrate in terms of consumers attitudes toward income gains and losses?

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Expert Solution

Q1 answer

WHY INSURANCE ? WHY

Because protection for you and your family. Your family depend on your financial support to enjoy a decent standard of living, which is why insurance is especially important once you start a family. It means the people who matter most in your life may be protected from financial hardship if the unexpected happens.

The life and property of an individual are surrounded by the risk of death, disability or destruction. These risks may result in financial losses. Insurance is a prudent way to transfer such risks to an insurance company

Be it life insurance, health insurance or general insurance, you can buy an insurance policy offline as well as online. Just like there are insurance agents who will help you buy a policy, there are websites as well that you can buy a policy from. Ensure that you have done your research before choosing and investing in an insurance policy

Rahul Sunny answered 1 year ago

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