RISK MANAGEMENT

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 Insurance is a form of risk management used to protect the financial well-being of an individual, company, or other entity in the event of an unexpected financial loss. While health, life, and disability insurance provide a financial ‘safety net’ against the unexpected financial loss resulting from illness, disability, or death.

Risk, in its most basic sense, is defined as the potential for an outcome to result in either a gain or a loss based on a given action, event, or occurrence. It is the exposure of an action that will result in either a positive or negative outcome.

 Insurance provides a convenient way to manage financial loss due to catastrophic risk.

You can manage risk in four ways:

Assume risk

Avoid risk

Share risk

Transfer risk to someone else

When you assume risk, you do nothing to minimize the financial impact of loss should a hazard occur. For example, you don't buy fire or flood insurance on your home or you don't have life, disability, or health insurance coverage. Should a risk occur, you must pay the full cost of the loss out of your own assets. This can adversely affect your financial goals for you and your family.

 Create generational wealth for your family and children 

 “A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just.” Prov. 13:33 (KJV) 

"There is that scattereth, and yet increaseth; and there is that withholdeth more than is meet, but it tendeth to poverty" Prov. 11:24 (KJV)