Personal Finance Concepts

Personal Finance Concepts

Introduction

Personal Finance is the science that studies the application of financial concepts in financial decisions. In personal finance are considered the financial events of each individual as well as their stage of life to assist in financial planning. Studies of financing options, home budget, calculation of investment management, current account, retirement plans, monitoring of asset tracking and expense are examples of tasks associated with personal finances. The main goal of personal finance is to allow each individual to have a healthy financial lifestyle (controlled) to be able to overcome times of adversity inherent in everyday life without stress, and allow others to achieve larger goals like buying a house, a car or start your own business. Moreover, personal finance is associated with insuring the life style of an individual and eventually the whole society and for that purposes both public and private corporations have developed products such as health insurance, car insurance, homeowners/renter's insurance, and life insurance.

Discussion

The paper will discuss the four components of the personal finance. In this case, the paper will help evaluate the components of insurance in personal finances, which include health insurance, car insurance, homeowner's/renter's insurance and life insurance.

Health Insurance

Health insurance is a form of social protection of population health. This is one of the most common types of personal insurance. The purpose of health insurance is to guarantee the citizens when compensation is necessary to receive medical care through the accumulated funds and fund preventive measures. Health insurance is also carried out in two types: mandatory and voluntary. Compulsory health insurance is part of the state social insurance and provides all citizens of the society with equal opportunities in the medical and pharmaceutical assistance provided by the mandatory health insurance funds in the amount and on terms consistent with the program of compulsory health insurance.

Car insurance

The coverage offered on a car insurance ...