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Question 1: You meet with Pat and Bruce for the first time and they share with you their financial planning objectives. Consider the risks that

Question 1:

You meet with Pat and Bruce for the first time and they share with you their financial planning objectives. Consider the risks that would prohibit these clients from achieving their goals. Identify them as endogenous or exogenous risks.

  • Saving for their childrens education
  • Manage and pay down their debt

Question 2:

For each type of insurance listed below, list the endogenous and exogenous risks these policies protect against and why.

  • Life Insurance
  • Auto Insurance
  • Critical Illness Insurance
  • Long-term care insurance

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