By Richard Hart, Director of Sales Training - Georgia Farm Bureau Insurance
For those in their 20s, thinking about financial risk and insurance is painfully boring. After all, what’s the big deal about risk? You’re young and healthy, what can go wrong? Well, the answer to that is – a lot.
Are you at risk?
First question: Do you encounter risks of financial loss every day? Yes. Do you drive an automobile, have a pet, own or rent a place to live, or interact with people? If so, then yes. Things could happen that end up costing you a lot of money. Financial risks can include automobile accidents, computer theft, getting sued by a third party, getting sick and more. How likely is the risk? Many common risks of loss seem unlikely – until something happens. Like it or not, you take risks every day that could end up costing you plenty.
What can we do about this risk?
The first step is to understand the types of risks you encounter. Even then, there are only four things you can do about risk.
The key is to recognize the risk and identify how likely it is or how large of an impact it could have. Only then can you make an educated decision about what you are going to do about the risks you face. That said, often the decision is to purchase insurance.