Many people use insurance as a risk management instrument to insure themselves against the risks of losing their lives, their incomes, their assets/properties, or the costs associated with a serious health incident.

1. Reflecting on the risk management principles, the insurance instruments and your own current situation, if you have a limited budget for insurance (e.g. $2,000 p.a.), how would you rank the risks that you would like to insure against? (e.g. would you like to use this limited budget to purchase an insurance policy that covers your health risk first, and then use any remaining money to buy an insurance policy to cover your premature death risk, then property risk and so on. Or would you choose different risks in a different ranking order?)
2. Most people take out/change their insurance policies when there is an important life event (e.g. marriage, having a child, buying a property). What life event would prompt you to take out/increase your insurance cover? What life event would prompt you to decrease/cancel your insurance cover? Why?