BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Savings accounts are risky, so there’s a chance of losing money from your account
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Accidents and illnesses can be far more expensive than the average American will have saved
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Insurance companies are nonprofit organizations, while banks offering savings accounts are for-profit businesses
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The federal government mandates that individuals have health, life, disability, and auto insurance
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Detailed explanation-1: -Buying life insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses.
Detailed explanation-2: -It’s best to keep your emergency fund separate from your other bank accounts. You want your emergency fund to be accessible in case you need to access it quickly-but not so convenient that you’re tempted to dip into it unnecessarily. You want to have a “set it and forget it” mentality when it comes to this account.
Detailed explanation-3: -a. If an individual were to have an emergency, cash needs to be easily accessible. Savings accounts are more liquid than investments because a person can easily get money out of a savings account in a few minutes, while it is harder to get money out of an investment because they are not easily accessible.
Detailed explanation-4: -The best place to keep your emergency fund (think three to six months of living expenses) is separate from your regular checking and savings accounts so it can be earmarked for emergencies only.