Proper risk management and insurance planning is critical to overall life planning success. Key aspects of risk management include understanding risks like hazards that increase the probability of loss from perils or causes of loss. When considering risks, one should not risk more than they can afford to lose and should transfer catastrophic risks through insurance. Insurance types cover life, health, disability, long-term care, auto, home, and business needs. Scheduling a financial roadmap discussion can help ensure the right insurance coverage is in place.

1. RISK ASSESSMENT & INSURANCE
PLANNING
Often in the course of life
planning, we focus extensively on
accumulation strategies. However
assets are of little value if they can
not be relied upon when needed.
Proper coverage is critical to plan
success.

2. Risk Management
Risk
the possibility of loss
(damage to house)
Peril
the cause of loss
(fire)
Hazard
increases the probability
of loss
(putting a heater too close
to the bedding)

3. Risk Management
Don’t risk more than you can
afford to lose
Consider the “large loss” principle
and transfer catastrophic risks
through sharing or insurance
Consider the odds
Remember that if the probability of
the loss is high, risk transfer should
probably be avoided
Don’t risk a lot for a little
Examine the relationship between
the cost of transferring the risk and
the potential value of the loss

4. Insurance Types and Issues
Life insurance (personal)
Income replacement
Debt & mortgage elimination
Spouse retirement guarantee
Child education guarantee
Life insurance (business)
Liquidity for the business
Key employee coverage
Partner coverage
Buy-sell agreement (exit strategy)
Employee retention
Auto Insurance
Medical insurance
Liability insurance
Protect your asset
Home Insurance
Flood zone?
Business Insurance
Commercial automotive
Commercial liability
Employee dishonesty
Property

5. Life Insurance Types and Issues
Term Life
Term specific coverage
Generally the most inexpensive
Pure protection- no cash buildup
Whole Life
Designed for your entire life
Cash for retirement
Level payment
Forced savings element
Tax deferred cash buildup
Potential tax-free use of cash
Interest guaranteed
Universal Life
Easier to compare due to
unbundling of costs
Interest guaranteed
Tax deferred cash buildup
Potential tax free use of cash
Flexible premium
Great planning tool
Variable Universal Life
Characteristics of Universal
Securities market investment
available
Guaranteed account available
Can loose money in securities
Great planning tool

6. Other Important Coverage & Issues
Medical Insurance
Deductibles & co-payments
Medicare
HIPPA
Prescription drugs
Types of coverage (i.e. HMO)
Health Savings Accounts
Disability Insurance
Your greatest asset is your ability
to earn a living
Personal income protection
Business income protection
Key employee coverage
Business overhead
Buy-sell agreement (exit strategy)
Benefit taxation and duration
Long-term Care Insurance
Level of care (skilled, home,
respite)
Activities of daily living (ADL’s)
Benefit and elimination period
Prior hospitalization requirements
Benefit amounts
Pre-existing condition issues
Tax issues
Non-forfeiture options

7. QUESTIONS? CALL TODAY
TO SCHEDULE YOUR
FINANCIAL ROADMAP
DISCUSSION
ISN’T IT TIME FOR YOUR FINANCIAL PLAN?