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How Insurance Could Help Protect Your Assets
When you’re financially successful, there’s always the potential for risk. Lawsuits, accidents, or unexpected liabilities could threaten your assets and place your financial foundation in jeopardy. When these challenges do arrive, insurance can be a powerful tool in protecting your assets.
Wealth planning strategies using insurance can help you preserve assets and build a strong financial foundation for your future. See how insurance plays a role in reducing the risks you can’t always see.
Types of Insurance to Consider
Effective insurance isn’t just a backup plan. It can cover your liabilities and keep personal and professional wealth intact in unexpected scenarios. Using insurance strategically gives you valuable practice in spotting weaknesses you can’t yet see. A financial advisor works with you to build wealth preservation strategies, including ways insurance can be part of your plan.
Umbrella Insurance
You may have current home or auto policies, but they may not cover every scenario. Umbrella insurance gives you an extra layer of coverage in case you’re responsible for accidents that involve other people. Imagine your primary insurance is a brick wall between your assets and your legal costs. Umbrella insurance would be an added layer of bricks.
Business Liability Insurance
Your business can be one of your largest assets. General liability insurance can provide coverage in case of common injuries, property damage, or legal risks. Whether your business faces libel, defense lawsuits, or settlement costs, general liability insurance can be a smart choice to safeguard your business’s bottom line.
Product Liability Insurance
Many manufacturers, retailers, or distributors may face legal costs stemming from defective products. Product liability insurance protects what your business creates or sells. Under more complex circumstances, like if someone claims your business’s defective products caused them harm or injury, product liability can help protect your assets.
Professional Liability Insurance
Doctors, consultants, and specialized service providers can get liability insurance that covers costs if people claim malpractice or negligence. Some professional liability policies also extend to property damage or loss. This type of coverage gives you extra protection in safeguarding your livelihood and career.
Weighing these types of insurance policies is an important step toward protecting your long-term financial future. Each policy covers specific scenarios and risks. A financial advisor can help you choose the right ones for your goals and avoid unnecessary policies.
Tips to Talk About Insurance with Your Financial Advisor
A successful conversation with your financial advisor about asset protection and insurance planning starts with asking the right questions. See some examples:
- How does insurance fit into my bigger wealth preservation picture?
- Given my assets, lifestyle, and business ventures, what kinds of risks should I be paying attention to?
- Are there any weak spots in my current coverage that could leave me vulnerable?
- Could increasing my coverage limits give me better peace of mind?
- Would umbrella insurance make sense for me, and how much extra coverage do I need?
- How can I adjust my policy limits or deductibles to get the most effective coverage?
Asking these questions can clarify what you’re covered for now, what you may need to be covered for in the future, and the gaps you need to fill. These conversations help narrow down the choice of policies and keep you informed about the reality of your financial picture.
The Final Layer of Protection
Insurance goes beyond protecting your finances to allowing you to focus on living your life while being confident that your assets are protected. Beyond preserving your wealth, insurance can be an important part of a wealth strategy that includes making new investments, pursuing philanthropy, or supporting future generations without fear of setbacks. Start by exploring tailored wealth planning strategies, which include an asset protection plan that’s as resilient as you are.
Sources:
- va.gov/OHRM/WorklifeBenefits/pli.asp
- sba.gov/business-guide/launch-your-business/get-business-insurance
- dfr.oregon.gov/insure/business/pages/liability-insurance.aspx
- tdi.texas.gov/tips/umbrella-policies.html
- umaryland.edu/media/umb/philanthropy/planned-giving/umbestateplanwkbkwebv2.pdf
This material is provided for informational and educational purposes only. It is not intended as investment advice or a recommendation that you take a particular course of action.
Insurance products are made available by UBS Financial Services Insurance Agency Inc. and by other insurance-licensed subsidiaries of UBS Financial Services Inc. through third-party insurance companies unaffiliated with UBS Financial Services Inc.
As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways, and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the client relationship summary provided at ubs.com/relationshipsummary or ask your UBS Financial Advisor for a copy. In providing financial planning services, we may act as a broker-dealer or investment advisor. When we act as investment advisors, we charge a separate fee for the service and enter into a written agreement with you. The nature and scope of the services are detailed in the documents and reports provided to you as part of the service.
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