Risk is when the odds or probabilities of future events can be estimated. Uncertainty is when the list of possible future events is unknown, so their odds of occurring cannot be estimated. So how do we make decisions under risk versus uncertainty? ARTICLE TABLE OF CONTENTS (Skip to Section) Risk and InsuranceUncertainty DefinedRisk Versus UncertaintyMaking Decisions Under Risk Making Decisions Under UncertaintyConfusing Risk Versus UncertaintyHow To Make Better … [Read more...]
268: How To Better Manage Risk
What are the three steps to better manage risk and get what you really want. In this episode you’ll learn: Why goods and services that lessen risk tend to cost more.What is the three-step process for assessing and managing risk.Why defining the risk-free option or asset is critical to managing risk.Why immediate annuities are the retirement risk-free option rather than a conservative investment portfolio.What are the two types of risk and how do we mitigate them.What is the … [Read more...]
213: Why Health Insurance Is A Mess
How health insurance isn't really protection against a catastrophic illness but prepayment of routine healthcare consumption, leading to overconsumption of healthcare and over treatment by medical professionals that drive up costs. What would it take to reform the health insurance marketplace so it is more fair and functions more like life insurance or homeowners insurance. In this episode you’ll learn: What has been the traditional role of insurance and why health insurance market isn't … [Read more...]
Should You Buy Insurance or Self Insure? The Case of Long-term Care Insurance
This audio lesson discusses the criteria to consider when deciding whether to purchase insurance or to self-insure. It uses long-term care insurance as an example to walk through the insurance decision process. The episode length is 14 minutes. … [Read more...]