A risk management plan is a vital part of your financial strategy
A well-constructed risk management plan should consider the risks that can be avoided, the risks that can be accepted, and the risks that should be insured. As your wealth accumulation plan plays out, your income is needed to service investment costs and living expenses. The goal of a risk management plan is to ensure your wealth accumulation plan can continue, even in unforeseen or unfortunate circumstances.
Most people have insurance cover for their home, contents and motor vehicles as a matter of course, and most superannuation schemes provide some level of life insurance cover. However, few of us have properly considered the potentially devastating consequences of an unexpected injury, life-threatening illness or permanent disability.