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Solopreneur Money

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Back to Basics #8 – Risk Management, Ep #148

Do you have everything you need to protect yourself in case life gets in the way? It is crucial to protect yourself, your family, and your bank account against the myriad risks that life can throw at you.

In this episode of Solopreneur Money, we’ll explore how to protect yourself and your future from life’s risks. Tune in to discover what you need to make sure that you and your family are covered.

You will want to hear this episode if you are interested in…

  • What risk management is [0:42]
  • Life insurance [2:02]
  • Disability insurance [4:00]
  • Health insurance [6:55]
  • Business liability insurance [8:03]
  • Liability umbrella insurance [9:01]
  • Savings [10:22]

The ways to protect yourself from any financial eventualities

We all know that life can throw a wrench in your plans at a moment’s notice. That is why it is so important to protect your family and your business from the risks. There are several ways to protect your assets from financial catastrophe.

Life insurance – Life insurance is an essential part of risk management, especially for those with families. Make sure that you have enough coverage to help your family in the event that you pass on prematurely. The kind of coverage you have doesn’t really matter. All that matters is that it pays out should you pass away. Personally, I prefer a term policy. It gives you the most bang for your buck for the time period that you choose.

Disability income insurance – If you become disabled and can no longer work, disability income insurance will replace a portion of your income–usually about 60% of your income. Make sure that you get your own occupation definition of disability. This will state the duties of your own occupation. If you can no longer perform your occupation this insurance will cover you until a preset age–usually about age 65 or 70. Do be aware of the elimination period which is generally from three months to one year.

Health insurance – Health insurance has only gotten more and more expensive over the years. I prefer to pair a high-deductible plan with an HSA. Listen in to see why.

Business liability insurance – Make sure that you have adequate protection in place so that your business is covered for all that you do.

Liability umbrella insurance is a good idea to ensure protection from any lawsuits.

Savings – Last but certainly not least, it is essential that you have enough cash reserves to offset any major expenses that might crop up. Having a healthy savings account will ensure that you can handle most eventualities that come your way.

Your next steps

Do you have adequate protection in place? Take a look at your accounts to see if you are lacking in any of these areas. You’re on your way to creating a life you love – don’t let life derail your financial plans!

Connect With Gabe Nelson

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