Personal Risk Management and Insurance

shutterstock_229094452There is no way to completely eliminate risk. It is a part of life. It is a part of financial management. It is a part of estate planning. However, there are some things that can be done to minimize and manage risk in an intelligent and thoughtful way. A major component of risk management is the strategic use of insurance. It is one of those items that fall in the category of “necessary evils.” No one wants to pay insurance premiums, but everyone who has had their insurance cover a loss is thankful that they had the insurance in place. There is a definite freedom in knowing that catastrophic losses will not destroy you financially.

One of the challenges of insurance is knowing which risks need to be managed and covered. These risks include, but are not limited to, the following:

  • Property such as vehicles, home, and valuables need to be protected against accidents, fires, floods, earthquakes, and theft.
  • Your health care needs to be protected by health insurance, and even long-term care insurance.
  • Your financial needs and income need to be protected by disability and life insurance.
  • Specific circumstances and stage of life may need their own insurance protection. Your profession or volunteer service may require you to have various types of liability protection.

As you consider all of these scenarios, you must find the best balance between appropriate coverage of your assets and affordable premiums for your budget. Even as you look for the best coverage of your assets, also look for ways to minimize your risks as much as possible.


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