Risk Management & Insurance
Risk management is one of the more often overlooked areas of individuals and businesses financial planning. While the needs from one household or business may vary there are very few individuals or businesses who have adequately addressed these risks. We spend significant amounts of money insuring our homes, vehicles, and other valuables, yet we rarely see people insure their most valuable asset (themself).
Individual Risk Management
Loss of income due to injury or unforeseen medical problems. If you do not have disability insurance through work, individuals should purchase their own disability policy to make sure you are covering off your biggest asset, your future earnings.
Loss of spouse (lost income, or higher future costs associated with taking care of your family) requires life insurance to address the needs of the surviving spouse.
Major health issues or critical illness (Heart Attack, Stroke, Cancer), this could leave you cashing out retirement savings, or going back to work when you should be resting and trying to recover. Critical illness insurance is an important part of your risk management strategy that will help ensure that you reach your retirement goals despite possibly experiencing some bad luck with your health. Critical illness insurance helps ensure you can get the help you need.
Business Risk Management
Owning your own business can be one of the most rewarding things you might do in your lifetime. In many cases you might have business partners. Life insurance is very important to make sure that each business partner is insured so that should one of your business partners die you are able to buy out the estate and allow your business to continue as a going concern.
You run a successful business and you are the key employee. If you have an accident or injury that prevents you from performing your duties at work for an extended period of time how would this affect you? For many this would have your business wiped out entirely. With disability insurance to cover your overhead expenses this will save you and your business from suffering significant financial losses due a short to medium term disability.
Partner Buy Out is an insurance policy designed to provide funds to facilitate a buy-sell agreement if a business owner is total disabled helping to protect the insured’s capital and to prevent a drain on company resources. This is designed to protect the business against losses due to disability and death.
Key Person Insurance is coverage designed to protect what you have spent years building, your profitability and independence. The proceeds of this policy would go to costs of hiring a replacement for the deceased employee and to compensate for lost productivity.