EverFi Financial Literacy Lesson 7: Insurance

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

• insurance policies.

• warranties.

• risk management strategies.

• deductibles.

Which is not an example of a risk management strategy?

• Wearing reflective clothing while biking at night

• Buying a new car

• Wearing a helmet while biking

• Wearing a seat belt while driving

An example of a risk management strategy is...

• wearing a seat belt while driving.

• carpooling.

• wearing a helmet when biking.

• A and C

What should you NOT use a loan to purchase?

• A house

• Tuition for higher education

• Airline tickets to your dream vacation

• A car

What is a risk management strategy you could use to protect your home?

• Buying a home security system

• Installing front porch cameras to monitor your home

• Purchasing reflective clothing to wear while biking at night

• A and B

How is having a security system for your home a risk management strategy?

• The security system will allow you to keep your doors unlocked.

• The security system will alert authorities and deter criminals, protecting your valuables and property.

• The security system will give you peace of mind.

• The security system will let you know when visitors knock on your door.

Buying a home security system is an example of protecting your home against________.

• deductibles

• risk

• warranties

• Insurance

Why is it important to have insurance?

• It's important to have insurance so people can protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property.

• So individuals can defend against the possibility of financial loss due to unpredictable event

• So people can engage in risky behavior without financial consequences

• A and B

Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...

• risk management.

• liability.

• warranty.

• insurance.

What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?

• Insurance

• Deductibles

• Warranty

• Liability