How Insurance Preserves and Protects Assets
Because insurance protects you from the unexpected, it plays a crucial role in your comprehensive financial plan. Marcum Financial Services provides a wide array of quality insurance alternatives that can offer an important layer of safety for you, your family and your business.
If you have not put an asset protection plan in place, your wealth maybe vulnerable to potential future creditors. Should the worst happen, you could lose everything. Lawsuits, taxes, accidents, death and other financial risks are facts of everyday life. Although you'd like to believe that you are safe, misfortune can befall even the most careful person.
What can you do? First, identify your potential loss exposure, and then implement strategies that are designed to help reduce that exposure without compromising your other estate and financial planning objectives.
Asset Protection Techniques
There are three basic asset protection techniques: insurance, statutory protection, and asset placement. None of these techniques is a complete solution by itself, but may make sense as one limited component of an asset protection plan.
The simplest way to cope with risk is to shift the risk to an insurance company. This should be your first line of defense. Before you do anything else, review your existing coverage. Then consider purchasing or increasing coverage on your insurance policies as appropriate.
You should be adequately insured against:
- Death and disability
- Medical risk, including long-term care
- Liability and property loss (both personal and business)
- Other business losses
