MANAGEMENT

Detailed explanation-1: -Four types of insurance that most financial experts recommend include life, health, auto, and long-term disability.

Detailed explanation-2: -A risk premium is a measure of excess return that is required by an individual to compensate being subjected to an increased level of risk. It is used widely in finance and economics, the general definition being the expected risky return less the risk-free return, as demonstrated by the formula below.

Detailed explanation-3: -The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance. If you have a Marketplace health plan, you may be able to lower your costs with a premium tax credit.

Detailed explanation-4: -The rate reflects three major elements: the loss cost per unit of exposure, the administrative expenses, or “loading, ” and the profit. In property insurance, approximately one-third of the premium covers expenses and profit, and two-thirds covers the expected cost of loss payments.