For example, what happens if the worst occurs and you are unexpectedly injured and can’t work anymore – either temporarily or permanently? Or if you die? What would become of your loved ones? How would you live once your savings ran out? What about the business you’ve worked so hard for? In most cases, these things can be protected against the most frightening scenarios.
Assessing and addressing your risk management strategy is an ongoing process. There are several strategies you can put in place to protect you and your family and these should be reviewed at least annually.
Risk Management is basically the transfer of risk from yourself to a third party.
Different strategies can be implemented depending on your health, your age and your occupation.
Strategies to Consider
Affordability and your ability to be successfully underwritten with a secure contract is essential. Beware of purchasing contracts without proper underwriting and contractual terms agreed upfront. Several discount operators, such as those which advertise on TV offering insurance with “no paperwork and approved over the phone” provide limited or no underwriting, so good luck holding them to their promises if you ever need to make a claim. Often these contracts are cheap: they are cheap for a reason and cheap doesn’t actually mean good value.