The Risk Management Process - Essay Example

B. Prepare a table listing the types of insurance policies you have and any policies that your parents have that cover you. Include in the table the type of policy, premium, policy limits, deductibles and/or coinsurance, losses covered, and beneficiaries (where applicable).

Types of Insurance Policies
Type of Policy Premium Policy Limits Other Terms/Inclusions
Individual Aetna Health Insurance $10,000 $750,000 Pharmacy coverage
30% copay
C. Write at least a one-page reaction covering the following: -- Are you adequately insured for auto, homeowners, health, and life insurance? Why or why not? -- Can you afford the additional insurance at this time? If yes, what are you planning to purchase? If not, what should you buy first, second, etc. when you do have the money?

At the current state of funds availability and family members (husband and children), one’s health insurance is the only one afforded at the moment. In this regard, one acknowledges that I and my family are not adequately insured for auto, homeowners, and life insurance gave that amount of current income could not possibly support and sustain purchasing all these at the same time. In this regard, after having accomplished the risk management plan, one was made increasingly aware of the sources of risks, the potential losses that one is exposed to, and how one could handle and address the risks through the purchase of additional insurance that caters to different risks.

As one has already earmarked some portions of combined income for the life insurance of the children, with a surplus of $750 per month, one could try to fit in other insurance coverage as deemed necessary. I could prioritize purchasing additional health insurance coverage that would include my husband and my children and therefore fits within the family coverage, which is less costly. I have to review the inclusions (pharmacy, dental) depending on the availability of funds.

Secondly, I think fitting car insurance needs to be planned next as the risks in driving and traveling are more eminent because we need to go out daily to our work settings and the children have to be taken to their schools. And third, I plan to buy home insurance to increase protection from fire and theft at home. Other insurances such as life insurance could be planned last when one has substantial savings to accommodate this.

Life Insurance Need
Using the website Living to 100, after answering the questions indicated in the calculator to determine my life expectancy, the results revealed that my calculated life expectancy is 88 years which is well above the life expectancies of my parents (Living to 100, 2011) Read More