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Wealth protection

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Wealth protection and insurance

Why is wealth protection so important? Well, you’ve probably worked very hard for what you’ve achieved – making those house or car repayments, working your way up the corporate ladder to get a great paying job and even working at building that harmonious family you’re so proud of.

So imagine how devastated you would be if - for reasons beyond your control - you lose what you’ve worked so hard for…Perhaps your house is destroyed by fire or flood, or maybe you’re unable to work at that well paid job because of illness or injury, or worst still – what if you lose a loved one, or if your family loses you?

Any of these circumstances would take an emotional toll on you and your family, but you CAN minimise the financial burden caused by such events through wealth protection.

So once you have accumulated some wealth or developed an income stream, make sure you PROTECT it so you don’t lose it!

How do you protect your finances? Insurance, mostly – so it’s a case of ‘spending money to protect your money’.

Have you got these ones covered?
  • House and contents insurance – your house is probably your biggest asset, so house insurance is a MUST if you own your home [in fact it’s probably required as part of your mortgage]. It’s also useful to insure your furniture and personal belongings – it can cost a lot of money to replace them all if they are destroyed or stolen. You can even get pet insurance on some policies, to cover you for those huge pet bills when your darling cat or dog gets sick or injured.
  • Car and vehicle insurance – any vehicle you own is also a major asset, and would cost you personally to replace in the event of an accident. Insure for damage you may cause to your vehicle and also for damage that your vehicle may cause to other people or property.
  • Public liability insurance – because of the increasing cases of litigation, many people are now taking out public liability insurance [often as part of their home insurance] to cover the costs of other people suing you for negligence. Of course, you still need to do everything reasonable to ensure you don’t get sued in the first place.
  • Income protection insurance – most people live from pay packet to pay packet, regardless of how big or small that pay packet is. How would you cope if you suddenly lost your job or couldn’t work due to prolonged illness or disability? Most families can’t cope, so salary insurance is essential, particularly if your are the primary income earner.
  • Health insurance – more important in some countries than others, health insurance allows you to receive medical treatment when you need it. It saves you from outlaying huge medical costs if you aren’t covered, and allows you to get treatment when you need it so you are able to get back on with your life.
  • Life/ death insurance and policies – you obviously won’t care much about this when you’re dead, but will your family cope? If you are the primary income earner (and even if you’re not) it’s satisfying to know your family will be financially secure if you do pass on. And don’t forget having a Funeral Plan and Last Will and Testament.
And if you own your own business, then you definitely need commercial or business insurance to protect you and your business from damages. Professional indemnity and public liability insurances as a minimum should be taken out.

Of course, there are some things you just can’t insure – for example you can’t insure against a stock-market crash, poorly performing stocks or incompetent fund managers. But you can diversify your investments so you don’t have all your eggs in the one basket – if one investment doesn’t perform, hopefully the others can smooth things over.

But as long as you have something, there is always a risk of losing it – so be prepared and protect your wealth as best you can and get the most of insurance for wealth protection.
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We are not certified financial planners or advisors. The information in this website is general information only. Always consult a licensed financial planner before making any finance or investment decision.


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