1. a) How is investment risk different from insurance risk? First, define the sources of risk associated with investment. Then, explain, in the context of risk management and insurance planning, how insurance risk differs from investment risk. Finally, describe the three common types of insurance risk and explain each in a brief statement.

2. b) What is a term-life insurance policy? How is it different from a whole-life insurance plan?

3. c) Explain the Consumption Smoothing concept in relation to the permanent-income hypothesis. How does a financial planner use Consumption Smoothing to estimate the level of insurance needs for a client?