BOOTS2WEALTH - INSURANCE

INSURANCE & RISK PROTECTION

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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.

Goal

Understand why protecting against loss must come before growth, investing, or optimization.

COMMON PITFALLS Treating insurance as optional or secondary Overestimating ability to “recover later” Prioritizing returns over resilience

MUST-KNOW RESOURCES CFPB – Managing Financial Risk https://www.consumerfinance.gov/consumer https://www.consumerfinance.gov/consumer -tools/managing-money/ -tools/managing-money/

WHEN TO PAUSE If protection is dismissed as pessimistic If risk is minimized or ignored

FINRA – Risk Basics https://www.finra.org/investors/investing https://www.finra.org/investors/learn-to-invest

MISSION MINDSET

You protect first so you can build second.

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

Goal

Ignoring everyday high-impact risks Assuming “it won’t happen to me”

Identify the real risks that disrupt financial stability—not hypothetical or exaggerated ones.

WHEN TO PAUSE If risk discussions rely on fear tactics If only upside is discussed

MUST-KNOW RESOURCES

MISSION MINDSET

Plan for impact, not optimism

SEC – Understanding Risk https://www.investor.gov/introduction-inv https://www.investor.gov/introductionesting/investing-basics investing/investing-basics CFP Board – Risk Management Overview https://www.cfp.net 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,

Goal

not payout.

Create a clear understanding of the role

COMMON PITFALLS Expecting insurance to “pay off”

insurance plays—and avoid confusion with investments or savings.

Comparing insurance returns to investments Buying complexity without clarity

MUST-KNOW RESOURCES

WHEN TO PAUSE If insurance is framed as an investment If benefits are unclear

NAIC – Understanding Insurance https://content.naic.org/consumer https://content.naic.org/consumer

CFPB – Insurance Basics MISSION MINDSET

https://www.consumerfinance.gov/complaint/ https://www.consumerfinance.gov

Protection is the product.

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

Goal

Ignoring coverage gaps during transitions

Understand why protecting income and

WHEN TO PAUSE

dependents is foundational to financial stability.

If coverage assumptions are unclear If dependents rely on your income

MUST-KNOW RESOURCES MISSION MINDSET

Protect the engine.

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/

PROPERTY & LIABILITY RISK (HOMES, AUTOS & UMBRELLA COVERAGE) 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

Goal

WHEN TO PAUSE If assets or income have grown If life circumstances change

MISSION MINDSET Protect what you’re responsible for.

Understand how liability and property risks can threaten long-term stability.

MUST-KNOW RESOURCES NAIC – Auto & Home Insurance https://content.naic.org/consumer https://content.naic.org/consumer

CFPB – Understanding Liability https://www.consumerfinance.gov https://www.consumerfinance.gov/complaint/

MILITARY & VETERAN INSURANCE CONSIDERATIONS 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

Goal

Understand military-specific insurance

WHEN TO PAUSE

benefits and transition risks.

During PCS, separation, or retirement If benefit changes are pending

MUST-KNOW RESOURCES MISSION MINDSET

Transitions require review.

VA – Life Insurance Programs https://www.va.gov/life-insurance/ https://www.va.gov/life-insurance/

Military OneSource – Insurance & Benefits https://www.militaryonesource.mil https://www.militaryonesource.mil/

HEALTH COVERAGE & MEDICAL RISK AWARENESS 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

Goal

Assuming coverage equals affordability Skipping reviews after life changes

Recognize how health coverage affects financial stability and risk exposure.

WHEN TO PAUSE During coverage changes After major life events

MUST-KNOW RESOURCES

MISSION MINDSET

Health risk is financial risk.

Healthcare.gov – Coverage Basics https://www.healthcare.gov https://www.healthcare.gov/

CFPB – Medical Debt Awareness https://www.consumerfinance.gov https://www.consumerfinance.gov/complaint/

RISK REVIEW CHECKPOINTS (WHEN COVERAGE SHOULD BE REVISITED) 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

Goal

WHEN TO PAUSE Before major financial decisions After life transitions

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.consumerfinance.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

Goal

WHEN TO PAUSE If explanations are vague

Recognize misleading sales practices

If second opinions are discouraged

and avoid pressure-driven decisions.

MISSION MINDSET

Pause protects you.

MUST-KNOW RESOURCES FTC – Insurance Fraud https://reportfraud.ftc.gov https://reportfraud.ftc.gov/

FINRA – Sales Practices https://www.finra.org/ https://www.finra.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