There is a cost/benefit relationship for insurance protection which means you could be under-insured or over-insured.

Question

Quizplus · Accepted Answer

Insurance is designed to mitigate financial risks, and the amount of coverage you choose should balance the cost of the policy with the potential benefits. Being under-insured means not having enough coverage to fully protect against losses, while being over-insured means paying for more coverage than necessary, which can be a waste of financial resources.

There Is a Cost/benefit Relationship for Insurance Protection Which Means