Financial Planning

Published: | Updated: December 9, 2017

Definition - What does Financial Planning mean?

Financial planning is the process of evaluating a person’s current financial status and determining a strategy or program of allocating and managing finances through investments, budgeting, savings, risk management, retirement, education, and so on. In the context of insurance, financial planning is the process of determining the types of insurance to purchase in order to ensure financial protection.

Insuranceopedia explains Financial Planning

Financial planning involves current variables as well as short- and long-term goals. In terms of insurance, financial planning must be based on the insured’s family, age, and economic state. There is no single type of policy that fits all needs; however, a person may purchase different types of policies to protect their different interests. For instance, life insurance protects the insured’s dependents, while disability insurance provides financial protection for the insured in case they become unable to perform work due to disability. Furthermore, homeowner’s insurance protects the insured from loss or damage to their home; whereas, liability insurance protects the insured from expenses incurred for damages or injuries to another person or property.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.