Insurance Planning is a critical element to effective
financial planning. Before an investor can begin
building a comfortable nest egg, there must be a
foundation that is laid first. The foundation is
comprised of several forms of insurance coverages that
will protect your nest egg in the event of catastrophes.
These coverages include: health insurance, life
insurance, auto insurance, home owner's insurance,
disability insurance, long
term care insurance, and property & casualty insurance.
4 Steps to Effective
Insurance Planning
There are four steps to effective
insurance planning. In the next few paragraphs, we
will explain what is entailed in each step of the insurance
planning process.
Step #1: Risk
Identification
The first step is to identify your
financial risks. We will need to do a thorough
analysis of the types of risks you are facing in each area
of insurance protection.
Here are a few examples of the
questions we might ask:
What would happen if the
main breadwinner in the family were to die?
What would happen if either
parent were to become disabled?
What would happen if someone
in the family lost their health insurance coverage?
What would happen if the
main breadwinner lost their job?
And more
Step #2: Risk Measurement
Measurement of the death,
disability, unemployment, loss of medical, and retirement
risks can often be a challenging job for a family and their
financial professional. Even more challenging is
the attempt to measure the loss severity of any of these
risks actually occurring. We will work closely with
your family's situation to do our best at setting you up
with the right amount of insurance coverage to make sure you
are protected at all times.
Step #3: Methods for Risk
Management
After we have a pretty good
understanding of the types of risks your family could face
in the event of an unexpected event, we will come up with
the appropriate method for managing those risks.
Step #4: Risk
Administration
The final step of the insurance
planning process will be to implement the proper amounts and
various types of necessary insurance coverages. We
will meet with you frequently to advise you on how much
insurance coverage you will need based on your changing
circumstances. Also, we will always search for the most
cost effective programs available.
If you would like O'Neil
Financial to take a look at your current insurance coverages,
as well as educate you on some of the latest techniques of
risk management, then click
here for a free consultation.
Securities and advisory services are offered
through Multi-Financial
Securities Corporation, member FINRA/SIPC, an
ING Company.
O'Neil Financial is not affiliated with Multi-Financial Securities Corporation
or ING. Investment products and advisory services
from these registered representative(s) available only to residents of California (CA), Florida (FL),
Illinois (IL),
Maryland (MD), Michigan (MI), and Wisconsin (WI).
