In the risk management industry, there are five basic strategies to address a risk.

Ignoring the risk is not one of them.

Hey, welcome to the retirement answerman show. My name is Roger Whitney. I am your host and this is the show dedicated to helping you not just survive retirement. We want you to rock retirement. I am personally hoping that my voice

survives this show so we can dive into this very important topic. So in risk

management there are five strategies.

Number one is you can retain the risk,

which is self-insuring, just taking on all the consequences yourself.

There's avoiding a risk.

If you don't jump out of an airplane with a parachute you don't risk the

possibility the parachute not opening so it's easy to avoid that risk not really easy to avoid the potential of a long-term care event.

So we can't avoid all risks.

We can mitigate risks by taking intentional action to either lower the odds of the risk manifesting itself or lowering

the severity of the risk if it does.

We talked about some of those measures last week with Dr. Milstein.

The last two strategies involve bringing in a third party,

typically an insurance company which is in the business of taking on other people's risks

either by sharing the risk with them or owning all of the risk.

And that's what we're going to start to dive into, and this week we're going to focus on

traditional long-term care insurance, and the next week we'll look at the hybrid policies.

In addition, we'll get to some of your listener questions.

But before any of that, let's have a word from our sponsor.

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