Discuss the following:
• Insurance
• Insurance plays a big role in risk management for a personal financial plan. Outline an insurance plan for several stages of life. Specifically address the following required elements:
• Explain risk management and its importance.
• Identify types of risk and how you can manage them.
• Determine appropriate insurance coverage for you by investigating options for property, vehicle, life, health, and disability. For example how much life insurance do you need? What type of policy? Do you need a renters policy or homeowner policy? What are your policy limits?
• Explain tax implications of insurance (i.e. life insurance proceeds, health care reimbursement, flexible spending accounts, disability premiums/proceeds).
• You have been an employee for the last ten years. Your employer had provided you with health insurance (coverage for just yourself), group term life insurance, and long-term disability coverage. Your employer has just been acquired by another organization and that acquiring company has decided to keep the personnel of your location as independent contractors, not employees, so it will not provide benefits. This means you have lost all your benefits in the next 90 days. How will you go about investigating and finding appropriate coverage based on your current family situation and the role that insurance plays in your financial plan? Describe the process and reveal the appropriate types of coverage that meet your needs and your budget.