ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Decrease financial cost when things go wrong
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Decrease the odds that something bad will happen
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Spreads the cost out over time (better for budgeting)
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Increases the potential negative impacts
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Detailed explanation-1: -Benefits of budgeting include providing “guardrails” (i.e., designated limits) for spending, achieving financial goals (if savings is included as a fixed “expense"), and for peace of mind.
Detailed explanation-2: -Insurance planning provides financial protection by compensating for the losses you face due to covered emergencies. You get to save tax by purchasing certain insurance plans. For instance, the premium paid for a health insurance policy qualifies for tax deductions under the Income Tax Act.
Detailed explanation-3: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Detailed explanation-4: -Gives you control over your money. Helps you focus on your financial goals. Keeps you on top of what you’re spending. Makes it easier to stay aware of your savings and debts. More items