Protect Yourself & Shift the Risk Elsewhere
Even if you do everything right, circumstances beyond your control can threaten to completely throw off the financial plans you’ve made. A good plan establishes contingencies for the unexpected, but it can be difficult to build adequate financial capacity to withstand some of the storms life can throw at you. A key element of Risk Management is shifting the financial risk of unanticipated situations from yourself by the use of insurance, where the insurer takes the responsibility for bearing the risk. Risk management is an important part of having a complete financial plan.
Health Insurance
Health care can be very expensive, and few people have the ability to self-insure to cover the potential cost of care you may need. Whether you obtain coverage through your employer or on your own, understanding the impact of your health insurance and benefit elections on your bottom line can go a long way towards increasing your financial stability.
Property Casualty Insurance
Accidents and incidents happen, often at the most inconvenient times. Insuring your home or car is not only important but in many cases mandated, and there are other property/casualty insurance products that can help you reduce your financial exposure, such as umbrella and liability insurance. It is important to assess whether you’ve adequately covered yourself in a cost effective way for those unexpected situations that can take a chunk out of your wallet.
Life Insurance
As the saying goes, the only things that are certain in life are death and taxes. Life insurance covers something you know is going to happen, but the question we cannot answer is when it is going to happen. Determining the right insurance coverage is about more than what you want to pay in premiums. A true analysis of your needs and desires will help determine what type of coverage and the appropriate amount to provide for your loved ones after you’re gone.
Disability & Long Term Care Insurance
How would you survive financially if you suffered an illness or injury that kept you out of work for an extended period of time? Would you have the income and savings to pay for care if you were unable to independently manage daily living activities? It is important to have an idea of what your income needs would be under those circumstances, and securing suitable disability and/or long term care protection can be a major help in keeping those situations from causing more financial harm.