Insurance Planning

Insurance is a vital tool for managing risks and should be included in a financial plan. It is a device to transfer the financial risks of loss due to illness, disability, death, property loss, and lawsuit from the insured to an insurance company. When considering insurance coverage, the financial planner needs to understand certain terms. Loss is the unintentional decrease of something valuable because of some future event. Risk is the possibility of suffering a loss. Risk management is the task of controlling risk. This module reviews the basics of life, disability, health, long-term care and property and liability insurance. By using a systematic approach to buying insurance, financial planners can provide clients with an excellent means of managing risk.