Building Wealth through Insurance
Building Wealth through Insurance
Armstrong Williams
October 9, 2005
As the wordsmith charm you with their thoughts and anecdotes about
Christmas and that wonderful holiday cheer. Let this serve as a reminder of
what is critical for you and your family's future as you close out one year
and enter another. How critical insurance is to creating long term wealth in your life.
Insurance is a crucial instrument for building wealth and for safeguarding
the wellbeing of your family. Unfortunately, most people give short thrift
to insurance in their financial planning. Maybe they don't want to funnel
money into a plan when they don't foresee having to make a claim in the
near future. Maybe it’s just too difficult for people in good health to
conceptualize what will happen in times of catastrophic loss. But no matter
how careful you are, tragedy can strike. It is imperative that you plan
ahead, and protect your resources, and ensure that your dependents are taken care of in times of tragedy.
A policy that will ensure that the financial goals of your family are met.
This is an essential part of estate planning. You must ask yourself, what
do you want for your family's future? Insurance is an overlooked means of
transferring wealth to future generations, and of ensuring that they are
away.
Could they make the mortgage or pay the bills or even cover funeral
family will have access to those funds when they need to pay debts or any
insurance is that it provides your loved ones with a liquid stream of funds
when they need it. If they don’t have this kind of liquidity, they may be
forced to sell stocks or other emergency savings during a down market in
order to pay bills immediately. In this sense, insurance is another way to
protect your family's long term investments.
Even if you don't have dependents, insurance is one of the best ways to
cover your assets. You've spent a lifetime accumulating major assets such
as cars, a house, and personal belongings. A disabling accident could
saddle you with astronomical medical bills, and leave you out of work. Just
that quick, your life savings can be wiped out. You need to guard your most
valuable assets against this kind of tragedy. Insurance is a way of
protecting the resources that create your wealth. In this sense, insurance
really should be an integral part of any investment strategy. It ensures
future generations.
At the very least, I urge everyone reading this to go out and buy home owner's
insurance. Most people think their automobile insurance will adequately
policies have relatively low caps. If you are in a serious accident, the
brunt of the medical expenses will fall to you. Most home owner's policies
have umbrella coverage that will provide much more comprehensive coverage.
It's a simple step to make sure your savings aren't wiped out should a
serious accident occur.
Seems foolish to roll the dice with your most important assets. Yet that’s
what most people do, leaving their homes and automobiles and even their
life savings unprotected. Do yourself a favor. Take a moment and research
what insurance policies bets suit your needs. It's a simple step to take in
order to protect your resources, and ensure that your dependents are taken
care of in times of tragedy.
If you heed this advice, not only will you have a happy new year but a
most prosperous one for decades to come.
