Introduction to Insurance

Managing financial risk is important to successful financial planning. Financial risk comes in many forms … and is sometimes not recognizable as financial risk. Sure, the first thing one thinks about regarding financial risk is losing money on an investment. But financial risk goes way beyond that. If an injury causes you to lose income, that is financial risk. If you lose a lawsuit and have monetary damages against you, that is financial risk. If a family "bread winner" dies or becomes disabled, that is financial risk. Anything "unexpected" that has an adverse effect on your financial goals is financial risk.

How you manage risk is a financial planning concern of major importance. For hundreds of years, people have used insurance as a means to help manage financial risk. You need to consider financial risk and the ways to handle it and how to avoid financial disaster.