Identify the Risk in Dollars


This week’s article tells us that “managing your risk constitutes a major element of your financial plan”, and that risk includes items such as your life in addition to your home.
Life insurance can be viewed as insurance to replace lost earnings, to provide a source of savings or an inheritance for your loved ones in the event of premature death, or the eventuality we all face. “The trick here is to put the risk in dollars. In the case of life insurance, for instance, lay out the expected income that will be lost if the insured were to die. Rules of thumb are handy, but there is no substitute for laying out the cash flows.” Call us if you would like assistance in doing this, and explaining some options that may be available to you. We’re always here to help.

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This commentary was created by a third-party for the Agent’s use. NTM 08-27.