From the course: Risk Management and Insurance Planning: Designing for Client Needs

Discovery process

From the course: Risk Management and Insurance Planning: Designing for Client Needs

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Discovery process

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Now, take a minute to re-familiarize yourself with the Pritchett's. Their background information is in the downloadable materials to this course. Place yourself in Pre-TAM's shoes. You're about to have a conversation with the Pritchett's about what their insurance needs are. In the downloadable file called the Pritchett's Background, you will find the financial goals identified by the Pritchett's. In context with those goals, what are some key questions you want to ask? Here are the key questions we have for the Pritchett's. 1. If Claire or Thomas' income were to disappear today, either through death or inability to work, how would your financial situation be impacted? 2. If Claire, Thomas, or either of the children suddenly had an expensive medical bill, where Where would they find income to pay for that bill? And also, what would have to be given up to pay for the health expense? Before we begin on strategies to mitigate risk, let's get on the same page about what risk means in the context of our course. Risk is the probability of harm, injury, loss, or destruction occurring in the future and and it can be divided into two types, speculative risk and pure risk. Speculative risk has three alternative outcomes, loss, no change, or gain. When you purchase shares in the stock market, you are taking on speculative risk. Pure risk, on the other hand, has only two alternative outcomes, loss or no change. Personal risk is a subset of pure risk and includes risk of death or disability, and disability can be from either an accident or illness.

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