Insurance Services

Building for the Future, Enjoying the Present

Risk Management is the process of identifying what can go wrong and how to mitigate the financial effects of unexpected and/or unpleasant financial events.

Often, risk management is simply a decision to buy insurance to compensate for a financial loss. For those situations where insurance is obtainable at an affordable price, this is often the only risk management undertaken, but it should not be.

Examples of this would be fire insurance on one's home or other buildings, disability income insurance, life insurance, or long-term care insurance.

Sometimes insurance cannot be purchased because of unique personal challenges. A person who has had cancer or who is an underwater demolition expert may have trouble getting life insurance from any kind of standard market at a premium that is cost-effective to most people. An individual with a vehicular criminal record or repeated accidents and/or tickets may find it impossible to buy auto insurance.

Sometimes an individual might fit within a “standard” market, but because of advancing age there must be a compelling reason for the insurance to justify the high premiums. Examples of this might be life insurance for someone in his or her 70s or 80s, or disability income insurance for anyone over 50.

When the purchase of insurance is not a reasonable option, risk management takes on an entirely different planning aspect. Time and energy should be spent developing strategies to cope with the financial issues of an unfortunate event.

We have professional competence to provide meaningful risk management guidance in only the following areas:

1) Disability during working years
2) Disability or incapacity requiring long-term custodial care
3) Death and its financial impact

While sometimes the purchase of insurance may seem like enough, the reality is that it will not solve most problems. After all, insurance only sends a limited amount of money to an individual or family. This is usually not enough to fully compensate for the financial loss, and in no way does it prepare the family for the hidden costs. For this reason, contingency plans should be agreed upon that address all the non-financial issues and that provide a framework to live a full and complete life for those surviving the death or disability of loved ones.


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