Identify the Risk in Dollars
Commentary: 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, layout the expected income that will be lost if the insured were to die.