When individuals consider risk management they must look at the risks associated with four crucial areas including: personal, property, liability, and business. Each of the four areas has special risks associated with it, and individuals should evaluate those risks and then determine a plan on how to cover, transfer, or eliminate those risks.
Personal risks are those risks that we all face on a daily basis in the course of our everyday life- they include the perils of death, disability, bad health, unemployment, and Superannuation. Most personal risks center on the ability to earn an income and provide for your family.
When we consider the consequences of uncovered personal risks, we think about protecting these areas of importance by entering into insurance contracts for life, health, disability, and income for life.
None of us like to consider death, but as the old clique goes... "There are only two things guaranteed in life...that's death and taxes". So, in order to protect the ones we love, cover our debts, pay for funeral expenses, send your children to college, or whatever the reason- many individuals need to protect their income stream in the event of their untimely death and life insurance is a way of doing that.
An individual faces three mutually exclusive risks centering around the uncertainty of death, they include:
1) Superannuation- outliving your income and assets,
2) Premature Death- dying when others remain dependent on your income,
3) Protecting your Estate- paying for taxes in the event of your death
Evaluating Disability and Health Risks
Managing WealthWhy buy a life insurance policy with an increasing rather than level death benefit
Financial AdvisorLife insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
Managing WealthWhy and how to use permanent life insurance to help provide for a family member with a disability or special needs
InsuranceLife insurance needs will likely change over the client’s lifetime and again financial advisers can provide an objective sounding board.
InsuranceWould your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected.
InsuranceUse these basic calculations for an estimate of how much life insurance you should get.
Financial AdvisorWealthy clients have an enviable problem — managing, preserving and growing wealth. Properly structured life insurance can help with these goals.