Podcast Episode 166: The Basics of Insurance Planning

Today’s Wisdom:

Insurance is a product that we all rely on but it can be a frustrating and confusing process getting all of your coverage sorted out. The best way to get a grasp on your options is to understand the fundamentals of insurance. Join us for this special episode spotlighting Joel’s whiteboard breakdown.

Want to save time? Click the timestamps below to jump ahead to specific spots in the episode.

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What You’ll Learn:

How much do know about insurance and the different types of products and coverage? If you’re like most people, there’s a little confusion and a little lack of understanding.

That’s okay because today we are going to talk about the fundamentals of insurance. To do that, we want to spotlight a recent video Joel created that featured a whiteboard and his breakdown of the basics. Getting down to the core of insurance will help you grasp what you’re really purchasing.

We’ll start by explaining the insurance contract. It’s simply when a person gives money to an insurance company and the insurance company takes risk away from that person. A person pays a premium and the insurance company takes the risk away from that person.

Then Joel we’ll use the financial pyramid of Investments > Assets > Risk to show you why insurance is essential. These three sections of the pyramid are anchored by risk at the bottom. It’s the foundation just like insurance. Insurance is in the foundation. If you don’t protect yourself and your portfolio from risk, then you could lose everything.

We’ll wrap up the discussion by explaining the different types of insurance you most commonly use. Joel will cover disability, life, auto, homeowners, and liability before we wrap it all up.

If you still have questions regarding insurance and or retirement planning, we can help you answer them. Request your free 15-minute call with one of our financial advisors today to get started.

Thanks for listening to this episode. We’ll be back again next week for another show.

[0:53] – Insurance conversation begins

[1:09] – What is an insurance contract?

[1:50] – Risk

[2:24] – Different types of insurance.

Thanks for listening to this episode. We’ll be back again next week for another show.

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Final Thoughts:

“Disability insurance, which in my opinion, is the most important insurance that somebody who is working can have.”

– Joel Johnson, Money Wisdom Podcast

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