Financial Planning
Insurance Planning
Insurance planning is to protect yourself, your family and loved ones, your home, your assets, or your business against unexpected events. The idea behind insurance is to get a group to contribute financially to a fund specifically designed to help individuals recover in the case of an unexpected loss. In this way, insurance eases financial burdens that can occur when disaster strikes.
Purposes of insurance planning
Insurance planning is a critical component of a comprehensive financial plan that includes evaluating risks and determining the proper insurance coverage to mitigate those risks. The principal goal of insurance planning is to identify and analyze risk factors in life and seek proper coverage to attain a peace of mind if disaster strikes. The chances of recovering partly or fully are assured by having insurance. Therefore, insurance is an economic device transferring risk from an individual to a company and reducing the uncertainty of risk via pooling.
You need to think of insurance planning as a fluid process, never stagnant or frozen in time. As your life changes, your insurance needs will have to change accordingly to remain protected. Your focus should be on acquiring enough insurance to match risk factors for you, your family, and your wealth. Here are the elements you need to consider as you embark on your insurance planning:
- Your age (young, middle-aged, retiree)
- Your family status (single, married, children)
- Your health (subsequently your family’s health)
- Your assets (home, car, boat, etc.)
- Your professional status (student, employed, self-employed, unemployed)
- Your economic status (insurance access and affordability)
contact Vermillion Financial Advisors today.