Avoidance is a risk-mitigation strategy that involves refraining from engaging in proceedings that could follow in injury, disease, or death. One such action is smoking cigarettes, which can be evaded to relieve both health and financial risks.
Fremont, CA: People generally face more health hazards as they age. Handling pure risk involves identifying, evaluating, and lessening these risks—a defensive tactic to get ready for the unforeseen. The standard risk management methods—dodging, sharing, transferring, retention, and loss avoidance and deduction—can be used in all facets of a person's life and can pay off in the long term. Consider five methods and how they can be utilized to handle health risks.
Sharing
Sharing risk is often executed via employer-based advantages that let the company pay a portion of the worker's insurance premiums. The company and all workers convey the risk in the insurance benefits. The belief is that premium prices should fall equally as more people convey the risks. Individuals may find it okay to share the risk by enlisting in employer-given health care and life insurance plans whenever feasible.
Avoidance
Avoidance is a risk-mitigation technique that includes refraining from committing actions that could follow in injury, illness, or death. One such action is smoking cigarettes, which can be bypassed to reduce health and financial risks.
As accordance with the American Lung Association, smoking is the chief preventable reason for death in the US, asserting more than 480,000 lives each year.
Likewise, the Centers for Disease Control and Prevention remarks that smoking is the primary cause of lung cancer, and the risk grows the longer people smoke.
On their end, life insurance companies reduce this risk by introducing premiums for smokers versus non-smokers. Health insurers can present premiums based on age, family size, geography, and smoking status under the Affordable Care Act, also called Obamacare. The law permits premium taxation of up to 50% for smokers.
