Risk Management is a broad category that reviews all your risk exposure. Then you take time to examine this risk and determine if there are ways to reduce or eliminate it.

It can encompass many areas of your finances. In the insurance industry, we look at two different areas of coverage: Property Casualty and Life Insurance. These two lines represent the different licenses held by brokers.

The risks we are exposed to might include bad health, or an accident that requires medical attention and medical expenses, so we have health insurance to protect ourselves and our finances.

Other risks include driving a car, personal liabilities and casualties. The risk of a homefire or death of the family breadwinner could mean financial ruin.

You may not be able to eliminate these risks, but you may be able to manage them.

When you build your financial plan, you must build it on a solid foundation. Protect the assets you have while you work to accumulate more.

With this in mind, what risks are you exposed to that carry liability? Do you have teenage drivers? Do you have a swimming pool in the back yard?

Proper insurance coverage can help protect the assets you have. Own fire and liability insurance, and also consider an umbrella liability policy. Own health insurance. Own life insurance on the breadwinner and have disability protection if possible.

Give your advisors a chance to review your coverages with you. There are several moves in the “Money Game” that include working with your insurance coverage. Insurance is a valuable tool when used properly.