Is insurance coverage an asset?

Whole life insurance and other types of life insurance with a cash value component are considered assets because you can withdraw funds from your policy while you’re alive.

What protects your assets?

Asset protection trusts offer a way to transfer a portion of your assets into a trust run by an independent trustee. The trust’s assets will be out of the reach of most creditors, and you can receive occasional distributions. These trusts may even allow you to shield the assets for your children.

Does liability insurance protect personal assets?

The personal liability portion of your homeowners insurance provides personal injury and property damage coverage. Increasing your personal liability coverage limit is typically inexpensive, therefore, we recommend purchasing enough coverage to protect your assets.

How does insurance protect your money?

Insurance helps reduce the financial impact of an economic loss. For example, if your car is damaged in a car accident, you suffer an economic loss, and auto insurance helps cover the financial impact. You probably allocated a portion of your monthly income to cover the payment for your house or auto loan.

Why you should buy insurance?

Insurance is key to you being able to focus on the important things in life, because it will ensure financial security for you and your family should anything unfortunate happen. Health insurance helps pay your bills should you develop certain illnesses or suffer from injury or disability.

Do you need to have an asset protection plan?

Asset protection planning should not be a substitute for liability and professional insurance, but rather should supplement insurance. It is a myth that asset protection plans invariably scare away plaintiffs, and an asset protection plan doesn’t pay legal fees to defend against a lawsuit.

Are there different types of asset protection insurance?

There are many different types of insurance that are effectively designed to protect your assets. The website Investopedia.com as of March 2016 describes asset protection as, “The concept of and strategies for guarding one’s wealth.”

How does insurance planning fit into a financial plan?

As you build your wealth, it’s important to protect your assets against any unforeseen events. While not as direct a way of saving as investing, insurance planning can save you significant amounts of money over the long-term. Think of insurance planning as a precautionary investment that shelters you from financial loss.

Why is it important to protect your assets?

Thankfully, there are many different types of insurance and some can be an effective tool for protecting your personal assets . Your greatest asset is your income. Therefore, it makes sense to protect it, right? The fact is, when you die, your paychecks stop.

What should be included in an asset protection plan?

Liability insurance is a good first step and should be a part of well-drawn asset protection plan. It can help protect your assets from lawsuits, but it does have its drawbacks. It fact is has several major drawbacks.

When to make an appointment for asset protection?

Asset protection is a critical part of a sound financial plan. If you’re not sure if you have the right coverage, or if you think you may not have enough, make an appointment with a qualified insurance agent, company representative, or financial advisor.

What kind of protection does a retirement account have?

Various investment accounts, such as Individual Retirement Accounts (IRA), carry a certain amount of protection in the interest of justice. Federal laws protect many retirement plans, but many types of protection are laid out by state laws—including protection for homesteads, annuities, and life insurance.