You’ve worked hard to build your wealth and obtain assets. You’ve got a decent income, you’ve got a big, beautiful house that you love to show off and a shiny, brand new car, but what happens if disaster strikes? Are you prepared for what that may mean for your finances? Most people aren’t. They have a plan to create wealth, but not a plan to protect their wealth. Protecting your wealth can be as simple as getting insurance. Homeowner’s insurance, auto insurance, health insurance, disability insurance, and life insurance can all help protect your wealth.
Homeowner’s Insurance is probably one of the first things you can do to secure your wealth. Homeowner’s insurance provides insurance in case of property damage, fire, flood, theft, and it limits your personal liability. This type of insurance also protects against falling objects, termites, earthquakes, the weight of ice, the collapse of buildings, and a host of other terrible things that could possibly happen. The premium for homeowner’s insurance are usually paid yearly or can be combined with your mortgage. Homeowner’s insurance protects your most valuable asset and therefore, your wealth.
Auto insurance exists to protect you and other drivers from damage done to your vehicle and yourself. There are different levels of insurance and various options you can add to or delete from your policy. For example, some policies cover liability: bodily injury liability and property damage liability. Others cover liability in addition to other types of coverage, including medical payments coverage, uninsured or under-insured motorist coverage, collision and comprehensive coverage, and other provisions. Having each of these types of coverage can help protect your wealth in case you have to pay out of pocket.
Healthcare can be expensive. Bottom line. Sometimes when you go to the hospital, not everything is covered under your insurance. Some routine procedures aren’t even covered by some policies. That’s why it’s important to not only get health insurance, but check to make sure that your policy covers a treatment you are planning on getting ahead of time (if you can). The right health insurance can help you protect your wealth. It’s important to browse for policies that you feel comfortable with and premiums that you’re certain you can pay because it’s your wealth at stake.
Disability insurance is a type of insurance that provides you with an income in the event that you become disabled. It’s sort of like insurance for your income. If you lose your income due to a disability, you can use your disability insurance to cover your cost of living until you get back on your feet. This is a great wealth protector because it guarantees that you won’t lose any income just because you’re not working. You won’t fall behind on payments and bills and you’ll be secure in knowing you have a safety net should anything happen to you. But be careful to read the policy because it only covers disabilities mentioned in the policy. You can get an individual disability insurance plan or you can go through your employer, Social Security, or Worker’s Compensation.
Life insurance is important, not only in the event of the death of a spouse, but also as another type of safety net. If your husband or wife suddenly dies, their income will be lost to you. However, with life insurance, you will be able to replace that lost income. Some life insurance policies even allow you to borrow money in the event of an emergency and you need cash. Usually, there’s a one year waiting period in which you must make all of your payments on time. Some policies also offer living benefits, in which policy holders can get some of the benefits under special circumstances (such as terminal illness or long-term care needs of the person insured).
Whatever the disaster, there’s no doubt that life is unpredictable. Things can be fine one day and chaos can ensue the next. It can feel like things are out of your control, but with the right types of insurance, you can protect your wealth and plan for disaster. Protecting your wealth will be the best decision you ever made.