This year, the Global Money Week theme is Plan Your Money, Plant Your Future and insurance is an integral part of this journey. Insurance helps you protect and grow your financial future.
While we cannot predict or foresee the future with crystal clear certainty, we need to be prepared for it. Insurance protects you against the financial consequences of unfortunate future events such as the death of a loved one, a car accident, theft, injury, sickness and many other events. It provides financial support when unplanned events occur. Other types of insurance policies also help you in accumulating wealth and savings in exchange for a nominal amount of premium over time. Some assist in diversifying your investment portfolio and other products come with varying tax benefits.
Insurance planning involves evaluating your assets and noting your requirements at personal and business levels. Firstlink will assist you with this evaluation and the subsequent structuring and implementation of insurance and risk management solutions suited to you. The process involves:
What risks are you faced with as an individual or as a company and what could be their impact on your finances? There are usually obvious risks but also hidden risks that the process will reveal.
Once risks are revealed, they are then categorised depending on the probability that they will occur and the extent to which they would impact you financially (severity). A risk matrix like the one below would be used to classify risks in their different categories.
Once the risks are classified and categorised, necessary risk mitigation measures can then be taken. Ultimately, the idea is to protect you or the business from those risks which have the worst financial impact should they occur first.
Your insurance and risk management plan will be structured along your unique circumstances. For example, the same building used for 2 different purposes will have a differing fire risk profile as shown below:
Building used as Ballet School | Building used as restaurant |
Only used afternoons for 4 hours Monday to Saturday. | Used daily for 8 hours. |
No fire/ naked flames/no cooking done on site | Braai/Industrial Stove/Various electronic cooking devices on site. |
Monitored groups of students. No smoking | Non monitored patrons. Smoking allowed |
Fire risk low and hence impact on revenue low | Fire risk high and impact on revenue high. |
Ultimately as part of a good financial plan, your insurance structure takes into account your goals and current financial situation. It evolves as your life/business changes. Talk to our team today to help you plan your money and plant your future on (0242)744048/79, 0772392075, 0779203074 or 0782146301 or email info@riskmanagers.co.zw
