WHY RISK PROTECTION COMES FIRST
KEY CONCEPTS:
Loss destroys faster than growth builds.
Wealth is vulnerable to:
Illness or injury
Loss of income
Liability events
Property damage
Unexpected life disruptions
Risk protection exists to:
Prevent catastrophic setbacks
Preserve stability during uncertainty
Protect progress already made
Notes:
Growth assumes survival.
Protection creates the conditions for patience.
Ignoring risk shifts consequences to loved ones.
COMMON PITFALLS
Treating insurance as optional or secondary
Overestimating ability to “recover later”
Prioritizing returns over resilience
WHEN TO PAUSE
If protection is dismissed as pessimistic
If risk is minimized or ignored
Goal
Understand why protecting against loss must come before growth, investing, or optimization.
MISSION MINDSET
You protect first so you can build second.
MUST-KNOW RESOURCES
CFPB – Managing Financial Risk
https://www.consumerfinance.gov/consumer -tools/managing-money/
FINRA – Risk Basics
https://www.finra.org/investors/learn-to-invest
https://www.consumer nance.gov/consumer -tools/managing-money/ https://www. nra.org/investors/investing
UNDERSTANDING RISK (WHAT ACTUALLY THREATENS WEALTH)
KEY CONCEPTS:
Risk is about impact, not probability.
Common high-impact risks include:
Loss of earning ability
Medical events
Legal or liability exposure
Housing disruption
Premature death
Notes:
Rare events can have permanent consequences.
Risk is personal and situational.
Planning addresses impact, not fear.
COMMON PITFALLS
Focusing on unlikely scenarios
Ignoring everyday high-impact risks
Assuming “it won’t happen to me”
WHEN TO PAUSE
If risk discussions rely on fear tactics
If only upside is discussed
MISSION MINDSET
Goal
Identify the real risks that disrupt financial stability—not hypothetical or exaggerated ones.
Plan for impact, not optimism MUST-KNOW RESOURCES
SEC – Understanding Risk
https://www.investor.gov/introductioninvesting/investing-basics
CFP Board – Risk Management Overview
https://www.cfp.net
https://www.investor.gov/introduction-inv esting/investing-basics https://www.cfp.net/
WHAT INSURANCE IS (AND IS NOT)
KEY CONCEPTS:
Insurance transfers risk; it does not create wealth.
Insurance is designed to:
Transfer catastrophic risk
Stabilize outcomes
Provide predictability
Insurance is not:
An investment
A wealth-building tool
A guaranteed return
A profit strategy
Notes:
Insurance trades certainty for cost.
Value is measured by protection, not payout.
COMMON PITFALLS
Expecting insurance to “pay off”
Comparing insurance returns to investments
Buying complexity without clarity
WHEN TO PAUSE
If insurance is framed as an investment
If benefits are unclear
Goal
Create a clear understanding of the role insurance plays—and avoid confusion with investments or savings. MISSION MINDSET
Protection is the product.
https://content.naic.org/consumer
https://content.naic.org/consumer
https://www.consumer nance.gov/complaint/
LIFE, DISABILITY & INCOME PROTECTION (PURPOSE & ROLE)
KEY CONCEPTS:
Income is the engine of wealth.
These protections address:
Loss of income due to illness or injury
Financial impact on dependents
Continuity during disruption
Notes:
Disability risk is statistically higher than death risk during working years.
Income protection supports dignity and independence.
COMMON PITFALLS
Underestimating disability risk
Assuming employer coverage is sufficient
Ignoring coverage gaps during transitions
WHEN TO PAUSE
If coverage assumptions are unclear
If dependents rely on your income
MISSION MINDSET
Protect the engine.
Goal
Understand why protecting income and dependents is foundational to financial stability.
MUST-KNOW RESOURCES
SSA – Disability Overview
https://www.ssa.gov/disability
https://www.ssa.gov/disability
CFP Board – Income Protection
https://www.cfp.net
https://www.cfp.net/
KEY CONCEPTS:
Liability risk is often underestimated.
Exposure may arise from:
Auto accidents
Property ownership
Personal injury claims
Legal judgments
Notes:
Liability can exceed asset values.
Legal costs alone can be disruptive.
COMMON PITFALLS
Minimum coverage assumptions
Ignoring liability exposure
Treating insurance as static
WHEN TO PAUSE
If assets or income have grown
If life circumstances change
Understand how liability and property risks can threaten long-term stability.
MISSION MINDSET
Protect what you’re responsible for.
https://content.naic.org/consumer
https://content.naic.org/consumer
– Understanding Liability
https://www.consumerfinance.gov
https://www.consumer nance.gov/complaint/
KEY CONCEPTS:
Benefits change with service status.
Considerations include:
SGLI VGLI transitions
Coverage gaps during separation
VA-related benefits
PCS and deployment realities
Notes:
Benefits are valuable but time-sensitive.
Transitions create risk windows.
COMMON PITFALLS
Missing conversion deadlines
Assuming benefits continue unchanged
Failing to reassess after separation
WHEN TO PAUSE
During PCS, separation, or retirement
If benefit changes are pending
Understand military-specific insurance benefits and transition risks. MISSION MINDSET
Transitions require review.
https://www.va.gov/life-insurance/
https://www.militaryonesource.mil
https://www.militaryonesource.mil/ https://www.va.gov/life-insurance/
KEY CONCEPTS:
Medical costs are a leading cause of financial stress.
Health risk includes:
Unexpected illness
Injury or chronic conditions
Out-of-pocket costs
Notes:
Coverage structure matters as much as access.
Medical debt can cascade into other areas.
COMMON PITFALLS
Ignoring deductibles and limits
Assuming coverage equals affordability
Skipping reviews after life changes
WHEN TO PAUSE
During coverage changes
After major life events
MISSION MINDSET
Health risk is financial risk.
Recognize how health coverage affects financial stability and risk exposure.
MUST-KNOW RESOURCES
Healthcare.gov – Coverage Basics
https://www.healthcare.gov
https://www.healthcare.gov/
CFPB – Medical Debt Awareness
https://www.consumerfinance.gov
https://www.consumer nance.gov/complaint/
KEY CONCEPTS:
Coverage must evolve with life.
Review triggers include:
Marriage or divorce
Birth or caregiving changes
PCS or job change
Asset growth
Notes:
Static coverage creates blind spots.
Reviews prevent gaps.
COMMON PITFALLS
“Set it and forget it” mindset
Reviewing only after problems arise
WHEN TO PAUSE
Before major financial decisions
After life transitions
Goal
Identify moments when risk protection should be reassessed.
MISSION MINDSET
Review before risk changes you. MUST-KNOW RESOURCES
CFP Board – Life Events & Planning
https://www.cfp.net
https://www.cfp.net/
CFPB – Financial Transitions
https://www.consumerfinance.gov
https://www.consumer nance.gov/complaint/
COMMON INSURANCE PITFALLS & SALES RED FLAGS
KEY CONCEPTS:
Pressure and complexity are warning signs.
Red flags include:
Guaranteed outcomes
Urgency or exclusivity
Emotional manipulation
Lack of transparency
Notes:
Incentives matter.
Questions are protection.
COMMON PITFALLS
Buying without understanding
Equating trust with verification
WHEN TO PAUSE
If explanations are vague
If second opinions are discouraged
MISSION MINDSET
Pause protects you.
Goal
Recognize misleading sales practices and avoid pressure-driven decisions.
MUST-KNOW RESOURCES
FTC – Insurance Fraud
https://reportfraud.ftc.gov
https://reportfraud.ftc.gov/
FINRA – Sales Practices
https://www.finra.org
https://www. nra.org/
BOOTS2WEALTH™ RISK PROTECTION QUICK CHECK
GOAL: Provide a self-assessment to evaluate readiness and awareness.
STABILITY
I understand my biggest financial risks
Income loss would not immediately destabilize my household
COVERAGE AWARENESS
I know what protections I have I know where gaps may exist
TRANSITIONS
I review coverage after life changes
Military or employment transitions are planned for
DISCIPLINE
I avoid pressure-based decisions
I’m comfortable pausing and asking questions