Consumers purchase insurance because they are required to and to manage risk. Describe briefly at least...

Consumers purchase insurance because they are required to and to manage risk. Describe briefly at least three of the following types of insurance: homeowner or renter, auto, healthcare, life, and disability.
Which types are you required to purchase?
Which types have you chosen to manage your risk?
When choosing between insurance policies with higher payments but lower deductibles versus those with lower payments but higher deductibles, which are you more likely to choose? Why?
Provide rationale and examples to support your thoughts.

Expert Solution

Consumers purchase insurance because they are required to and to manage risk. Describe briefly at least three of the following types of insurance:
homeowner or renter, auto, healthcare, life, and disability.

Homeowner or renters insurance is the insurance done by owner or renter of a real estate against accidental damage and other calamaties.
Auto insurance is the insurance for vehicles (automobiles) and has to be bought and renewed periodically by automobile owner for protection against accident. this protection may
pay for accidental damage to government / other parties as well, and hence protects them too.

HealthCare insurance is the insurance done by individuals to cover expenses of their healthcare over time. This is done to meet all expenses related to healt (both anticipated as well as non anticipated)

Which types are you required to purchase?
As an individual, one is required to have healthcare insurance. As an owner of vehicle, auto insurance is also required. and as owner of real estate homeowner insurance is also required.

Which types have you chosen to manage your risk?
Hence, the chosen specific insurances are homeowners insurance, auto insurance and healtcare insurance
out of these, homeowners insurance, auto insurance, healthcare insurance, all three are for insurance against risk.

When choosing between insurance policies with higher payments but lower deductibles versus those with lower payments but higher deductibles, which are you more likely to choose? Why?
Provide rationale and examples to support your thoughts.

while chosing between insurance policies, there are many factors to be considered which depend on the type of insurance as well
for example, at a younger age one can opt for a healt insurance plan with higher deductible and lower payments as the risk for health is low at young age
similiarly, for all low risk situations one can opt for higher deductible sand lower payments nad for high risk situations one can opt for low deductable and high payment insurances

genius_generous answered 2 years ago

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