Advanced Diploma of Financial Planning (ADFP) 2025 – 400 Free Practice Questions to Pass the Exam

The correct choice encompasses a comprehensive set of insurance types essential for providing fundamental protection against various risks individuals may face in their lives. Life insurance serves to protect beneficiaries financially in the event of the policyholder's untimely death, helping to cover living expenses, debts, or future obligations such as children's education.

Health insurance is crucial for managing medical expenses, ensuring access to necessary health care, and protecting against the high costs of medical emergencies or routine health services. Disability insurance offers financial security by providing income replacements if an individual becomes unable to work due to a disability or illness. Finally, automobile insurance protects against financial losses resulting from vehicle accidents, covering costs related to damages, liability, and injuries sustained.

Together, these types of insurance create a robust safety net that addresses some of life's most critical and potentially costly risks, making them fundamental for basic coverage. Each type plays a unique role in ensuring individuals and families can maintain stability and security amid unforeseen challenges.