There are a number of ways to protect your wealth and assets. The most common form of asset and wealth protection is to take out insurance. But what do you need to take out and will you be covered for any event?
There are a variety of insurances you would need to take out to protect your wealth for almost any circumstance. The major types of insurance would include house and contents insurance, car insurance and personal insurances (life, total and permanent disablement, trauma and income insurance). You can also get other types of less common insurances, such as investment protection to protect your super from an economic downturn.
Of course you can never actually insure in case of anything. For example, you may not be able to get car insurance that covers hail damage in your area. It’s a very good idea to seek expert advice when looking at insurance as a broker (for asset insurance) or a financial planner (for personal insurance) can help you select insurance that will suit you. That means you’ll avoid paying for too much insurance and ensure your covered where you need it.
For the things you just can’t insure for it’s important to have a plan, particularly if you live in a flood plain or area prone to bushfires. Backing up hard drives and especially family photos should be an essential part of any plan. But keeping a cash reserve and knowing where you can acquire financial assistance is also important (see our article on assistance from the government).
Simon is a Financial Adviser at Insight Wealth Planning. He has an advanced diploma and masters in Financial Planning and has a strong technical background.
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.