At Marshall Investment Management, we can help you understand the important role insurance can play in protecting you and your loved ones. We use insurance as a tool to help you mitigate risk; and we start by implementing a risk management process.
Basic mechanics of risk management
In general terms, the risk management process involves taking steps to cope with risk – and thereby minimize losses. If you wish to undertake a comprehensive plan of risk management, here are the basic steps you should take:
- Identify and evaluate the various risks to which you are exposed in your life
- Identify and evaluate the potential losses associated with each particular risk
- Formulate and map out a strategy or set of strategies for dealing with the risks/losses you've identified, both individually and collectively
- Put the strategy(ies) into action
- Periodically review the plan you've set up, and where appropriate, make changes as your circumstances change
Not surprisingly, these steps toward personal risk management are very similar to the steps that risk experts take in their efforts to manage risk for major corporations. When you follow these steps properly, you will be well on your way to pursuing the basic objective of risk management.
We can help you implement this process, as well as understand its key concepts, such as:
- Cash value life insurance policies
- Term life insurance policies
- Evaluating existing life insurance policies
- Strategies to provide adequate resources for survivors
- Help in determining the proper amount and type of life insurance
- Should you purchase long-term care insurance?
- Is your home and auto insurance adequate?
- Understanding the basics of Medicare
- Should you purchase a liability umbrella policy?