Risk/ Insurance Planning

Risk and uncertainty is part and parcel of life. Our income is the vital component to our existence. Any threat to its continuity will destabilize your family. The truly rich are free of financial worries because of their passive income portfolio. They don't have to work to live. Their assets generate enough income for survival. But the elements of risk do not wait for you to accumulate the required wealth. They can strike at any time. Therefore it is vital that we buy protection for a relatively small price and transfer this risk to an insurance company. By pooling the risks of a large number of people the insurance companies are able to provide protection for a fraction of the actual cost.

Protection is needed for a variety of situations, the most important of which is income and asset protection. There is the distinction between pure risk, which is the risk of loss of a capital asset and mortality risk which is associated with the loss of future income or the incurrence of future expenses through death, disability or illness.

There are business situations that can effectively utilize insurance products to provide security and smooth transitions in the event of certain untimely death or disability.