Your Protection Strategies
Protecting Your World and Minimizing Risk
The basic concept to understand is that in life, other than Death & Taxes, there is no certainty. Every situation in your life, every scenario, likely contains some element of risk. That includes your health, your ability to earn an income, your investments, the economy, and the risk levels seem to rise and fall in waves, in good times and bad.
There are arguments in favor of taking on risk – new career, self-improvement, relationships, and certainly investment opportunities. But wherever there is risk with a potential financial consequence, it is sound advice to assess risks carefully, and wherever possible, mitigate those risks. Education is mandatory. Having an exit strategy is advisable.
Backup plans for what to do when things don’t go as planned. Ideally, you’ll have enough in liquid assets to cover expenses for at least six months. Great strategies, right?
The other way to mitigate risk or protect yourself from loss is by Transferring Risk. And that is done with insurance. Here’s a quick list of scenarios where risk can be transferred:
We all need some types of insurance, some of us need more than others. The right strategy for you depends on your particular needs, goals and budget.
What Are the Key Benefits of Transferring Risk Using Insurance?
- Leverage – “some” dollars enrolled that can create “many” dollars when needed.
- Affordability – available for nearly any budget
- Flexibility – coverage where needed. For example, a term policy to cover your mortgage, or a disability income policy if you’re injured and can’t perform your job (there are many other scenarios of course).
- Protecting Your Personal Assets and your Legacy – regardless of your level of wealth, there’s no reason to take it away with unnecessary loss.