1.Describe the four steps to creating a personal insurance program. Individuals have the right to choose their own personal insurance program. Each person should determine what he needs in the insurance program. There are four steps required to create a personal insurance program. First you need to set insurance goals. “Your insurance goals should define what you do to cover the basic risks present in your life situation” (Hughes, 2009, p.312). For example, when purchasing a home you should purchase homeowner's insurance to protect your home; in the event of fire, water damage, break-ins or theft. You can live comfortably without worrying about losing your home. The second step in creating an insurance plan is to develop a way to achieve your goals. You can plan what you might do if you lose some things. You should be able to determine the different services you could use in case of unexpected problems. For example, Mike insured himself in case of injury or accident: he purchased accident insurance. Let's say Mike broke his leg playing golf. Mike doesn't have to worry about losing his entire paycheck because the accident insurance will pay him a portion of what he earns from working. Then you can put your plans into action. You will be able to follow the goals you set for yourself. You can try to pay for things that need to be insured like your car and home. Determine how much to pay for what to keep up with your personal insurance plan. Research the different types of insurance you want to purchase; such as dental insurance, health insurance and medical insurance. After your research you should determine who you will get your insurance from. You may have the option to purchase it through your employers or external companies. She if you can... half the paper... and employed. Group life insurance is the same no matter how old you are. Credit life insurance is used to pay off a debt incurred by a person. For example, Billy took out a loan for a car. When Billy died, his life insurance paid off the debt. “It is based on the belief that “no one's debts should live after him” (Hughes, 2009, p.392). Industrial life insurance is "the type of insurance that is sometimes called debt life insurance or home service life insurance because an agent literally comes in and collects the premiums" (LifeInsuranceWiz). I had never heard of this type of insurance until I read this chapter. “Industrial life insurance is the least popular form of insurance and its attractiveness continues to decline rapidly” (LifeInsuranceWiz). According to (LifeInsuranceWiz), these policies are usually purchased by low-income people.