Risk Assessment is a critical component in understanding the financial risk to which a family may be exposed. Which of the following statement are true?

1. Net Worth is a summary of the familys Assets and Liabilities and can be used to establish what is available to cover their wishes upon death of one or more of the spouses

2. Net Cash Flow is the gross income minus all expenses and indicates what discretionary income is available to cover the cost of any risk management products

3. A client who is an extreme sports enthusiast (skydiver and mountain climber) will never be able to purchase individual life insurance because of their risky lifestyle.

4. Risks can be classified as severe, limited, and inconsequential. Regardless of the classification, they should all be covered by insurance.

	A.	3 and 4 only
	B.	1 only
	C.	2 and 3 only
	D.	1 and 2 only