Ch.1: 1.1: Financial Protection By A+S-- Individuals

Question 1

For individuals/families: 3 main goals

Answer 1

• accumulate wealth
• create retirement income
• meet family needs

Question 2

Financial Risks that threaten individual/family (DULL LI)

Answer 2

D- debt
U- unexpected expenses
L- loss of income/savings
L- lower standard of living

L- longevity (outliving money)
I- inflation

Question 3

PERSONAL risks rhat threaten individuals + Fam (x2)

Answer 3

1. Likelihood of disability
2. Loss of independence + cost of LTC

Question 4

Needs met by A+S for individuals (x3- S.A.I)

Answer 4

Protects:

S- Savings: cash to replace lost inc, pay med bills

A- Assets: (CI+LTC Ins benefits to offset costs

I- Income: (disability income protection)