Week 1 Summary.docx - Week 1 Summary Welcome to the world...

Week 1 Summary
Welcome to the world of managing risks.
We all know about or have experienced unplanned occurrences and costly mistakes. In our personal
lives, we obtain some insurance products because we have to, due to state regulations requiring
minimum levels of auto insurance, banks requiring basic homeowners coverage as a part of a mortgage
application, and Social Security deductions from our paychecks.
This week we are building the foundation for understanding insurance. For example:
Why am I able to buy insurance for some things but not others?
Are there other ways to reduce risk other than insurance?
Does insurance actually help society and the economy?
What is insurance and how does it work?
What does it mean to self-insure? Should I ever do it?
To appropriately explain insurance to a financial planning client, you must know the basics. You can then
consider the most effective ways to add insurance knowledge and potential comfort to your clients' day-
to-day lives and to enhance their long-term financial well-being.