Insure Against Risks With Catastrophic Consequences
Insurance planning and risk management involves comprehensive fact-finding to determine the exposures to specific risks and the extent to which these risks could impact the client. Risk in this instance concerns events for which there is only a chance of a loss, known as a pure risk scenario. Upon identification of the risks a client faces, a review of the current insurance policies should be made to determine the extent of exposure. As a general rule, plan for expenses that are recurrent and can be financed from current cash balances and insure against risks that would be catastrophic.
The type of risks that clients are exposed to includes:
- Loss of Income
- Estate Liquidity
- Loss of Property
- Injury to Others
- Illness/Injury of Family Members
- Business Ownership Risks
A True North Financial Advisor can evaluate the insurance companies that issue polices to cover the risks clients face. The financial strength of the insurance company, policy limits, policy riders and policy deductibles should be considered. The types of insurance policies include:
- Life Insurance;
- Disability Insurance;
- Medical Insurance;
- Long Term Care Insurance;
- Homeowners Insurance;
- Liability Insurance;
- Auto Insurance; and
- Business Insurance.
The best of plans can be ruined when a catastrophic event hits. In a world of uncertainties, the risks that we face require a decision of whether to insure the risks or not. No decision is a decision to self-insure. A True North Financial Advisor can help identify those risks which need to be insured so you can remain on course towards your True North.
