Treatment Of Risk

Once the causes of loss have been identified (e.g., death, disability, and retirement of various members of the family or firm) and the amount of the potential loss has been measured
(e.g., the size of income going to the family, probable hospital expenses, cost of college, mortgage payments remaining), the individual must inventory the resources he has available to meet such losses. The following sources of income or assets typically are available to meet the above-named contingencies. 

1. Social Security
2. Group insurance provided by an employer
3. Individual insurance policies
4. Income earned by spouse
5. Savings and investments
6. Present assets