Financial planners and advisers attempt to assess the risk level that can be tolerated by an individual and recommend investments appropriate for this risk level. Many individuals, however, serve as theirs own financial advisers. The question arises as to how well individual investors can evaluate their own level of risk tolerance and match their choice of investments to fit this risk level.

Diversification is a popular risk management technique where the assumption of risk is unavoidable. Investors can reduce the impact of a potential disaster by limiting the potential of loss. Owning a single stock magnifies the opportunity for gain and loss; owning 10 stocks in different industries dilutes the effect of one’s stock movement upon the portfolio.

f you cannot reach your investment objective by limiting your investment in only “safe” assets, you can limit the potential of loss while exposing your portfolio to higher gains by balancing your investments between safe and higher-risk investment types. For example, you might keep 80% of your portfolio in U.S. Treasury bills and only 20% in common stocks. This potentially provides a higher return than a portfolio invested solely in Treasury bills, but protects against losses that might result in a 100% equity portfolio. The proportion of safe to higher risk assets depends upon your risk tolerance.

Source:

http://www.moneycrashers.com/investment-risk-tolerance-definition-questionnaire/

Some of the considerations I have before choosing the health insurance plan are:

1. Option of choosing a low premium and high deductible or vice-versa.

2. What are the unavoidable costs like premium.

3. The other possible costs which are not primarily included in the plan.

4. The tax benefits of the plan.

Some of the emergencies covered in a health insurance plan are no pulse, severe bleeding, spinal cord or back injury, chest pain, severe eye injury, broken bone, inability to breathe.

Choosing a health plan can be complicated. There are a lot of things to take into account. There are several important things to consider when you compare Marketplace plans. Like plan category, monthly premiums, out of pocket expenses, type of insurance plan and the provider network and the benefits of the plan.