Make Sure Your Wealth Is Protected

Make Sure Your Wealth Is Protected

June 23, 2021
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When you’re wealthy, you have a lot to lose—through property damage/loss, liability lawsuits, expensive medical treatments, and income interruption. It’s important to know what types of insurance policies will cover you when things go wrong.

Protecting your wealth is an important obligation you bear to ensure the well-being and comfort of you, your family, and loved ones. Among the many precautions you can take, none is more important than developing and executing a comprehensive insurance strategy.

Protect your assets. In addition to your primary home, you might also own one or more vacation homes and other personal properties that require home insurance. The policy should cover the replacement value of your belongings, and may require additional coverage for expensive items like collectibles, jewelry, musical instruments, etc. You will also need the appropriate insurance for your cars, boats, aircraft, and other vehicles.

You may be a tempting target. We live in a litigious society, and the affluent have more to lose. You can use liability insurance to cover expensive lawsuits and judgements that can easily run into 7-digit territory. An umbrella liability policy covers claims that exceed your regular asset insurance. The policy covers you and the members of your household against costs arising from injury to others and damage to their property. Umbrella insurance can be relatively cheap, so it’s easy to buy enough high-dollar coverage to protect against virtually any contingency.

Medical expenses can dwarf insurance premiums. There is no doubt health insurance can be expensive, but the premiums you pay for a gold-plated policy are small compared to the huge costs of top-quality care. While the Affordable Care Act (ACA) policies are a good start, a “Cadillac” plan will cover you against any out-of-pocket expenses, including costly treatments and expensive prescription drugs. You should also consider a generous long-term care policy that will pay for extended care should you become seriously or chronically ill.

Protect your income from interruption. If you are injured or ill, your health insurance can cover your medical costs, but you also want insurance to compensate you for lost income. Disability insurance will pay you benefits when you can’t work. Your goal is to obtain a policy that will pay sufficient benefits for as long as necessary so that you don’t have to worry about lost income. If you run your own business, you will need extensive business insurance, including key-person policies to protect you when important employees become unavailable.

You may need an integrated insurance plan. Piecemeal insurance portfolios may leave coverage gaps, provide insufficient coverage amounts, and sacrifice package discounts. Contact me today for a comprehensive review of your insurance coverage. Together, we can create a plan to help shield your wealth against life’s unanticipated events.

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Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. LPL Financial and GENESIS Wealth Management LLC are separate entities.

This material was prepared for Sunhee Lee and does not necessarily represent the views of the presenting party or their affiliates. This information has been derived from sources believed to be accurate. Please note—investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

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