Name 3 methods of handling risk and give an example of how that method occurs in households. Terms life insurance. Whole life insurance, and Universal life insurance a. Pick any 2 of these and tell how they differ. Nathan wanted term insurance coverage for 10 years and had looked at polities from two companies. Policy 1 had a lower price than Policy 2 at the beginning, but later Policy 1 would become more costly than Policy 2. a. What is the Net Present Value of Policy A? b. What is the NPV of Policy B? c. Which policy should, Nathan select, if the discount rate is 7 percent