Managing Risk

I didn't call this column "Introduction to Insurance" for a reason. I believe that many times, with all of the complicated products available, people forget that the goal of insurance is to manage risk. I want to start with how we can control the risk in our lives.

We can AVOID it. We simply don't participate in those activities that lead to the risk. Of course, some risks cannot be avoided, so we must choose another strategy.

We can REDUCE it. We engage in the risky behavior less.

We RETAIN it. We simply live with the risk the event will happen.

We TRANSFER it. This is the purpose of insurance. We transfer the risk to the insurance company by paying them a small amount, so we can avoid a large gain.

Over the next few blogs, we will look at different kinds of insurance and choices we have in insurance products.

Be prosperous!
Peggy