5 2 Risk Risk is a vital area to consider but one that many people underestimate. We all need protecting against the unexpected and eliminate the potential risks from long-term illness, disability and death by transferring the risk to insurance companies. Your assets can be exposed to risks from illness, disability, death, relationship breakdowns, taxation and business disruption (if you’re a business owner). The key thing is to identify where the potential risks are in your life, then define which risks can be mitigated by financial products, and determine how much risk is prudent and how much is too much. The idea of protecting yourself from risk isn’t new – it’s a feature of many parts of our lives. We have car insurance in case we’re involved in an accident. We have home insurance in case of fire, theft and flood. We have travel insurance in case flights get cancelled. The list goes on. Another way of looking at risk and wealth protection is that it provides for the people you love, the people who are important to you. 10 Jonathan M. Gibson CFP™, Chartered Fellow (Financial Planning) www.wellsgibson.uk
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