For the affluent, protecting wealth is a key consideration – not just for yourself, but to ensure the long-term security of your family. After working so hard to build your fortune, it stands to reason that you would want to keep it safeguarded in every way possible to ensure that both you and your loved ones will be taken care of in any eventuality, which is why it’s wise to take out several robust insurance policies to cover all bases and provide a safety net should the unexpected occur.
From high-value homeowners’ insurance and life insurance to accident and injury cover and extended liability insurance, it isn’t a case of one-and-done and you’ll need to ensure that you have a range of policies in place to cover all bases. The good news is, there are some excellent options on the market today that will give you all of the peace of mind you need.
Here, we take a look at the essential insurance tools for protecting your assets and those who matter the most to you that you should consider taking out sooner, rather than later.
High-value homeowners’ insurance
Luxury high-value homes aren’t just residences, but valuable assets into which great investment goes, which means specialist insurance is essential to safeguard your abode and everything in it. From high-end furnishings to original works of art, the affluent homeowner often has far more valuables inside their properties than your average Joe, which is why a policy designed especially for high-value homes is key. In the event of loss caused by fire, theft, or a natural disaster, you will be compensated for your home and everything in it, minimising financial impact on you and your family.
A good policy should also include liability cover, which means should a lawsuit ever arise due to an injury sustained in your home from a guest or visitor, your wealth and assets will be shielded from any claims.
Life insurance and estate planning
Should the worst occur, you’ll want to know that your family will be taken care of, and life insurance is a vital tool when it comes to estate planning, providing liquidity for your estate taxes to ensure that your family and any other beneficiaries of your will receive their inheritance without having to face hefty tax liabilities.
In the event of your passing, your family will also receive a large pay out from your insurance provider to ensure that they can maintain the same quality of life even whilst waiting for the probate period to pass on your will and your assets to be distributed accordingly. It might not be a nice scenario to contemplate, but most will agree it’s necessary.
Accident and injury insurance
Accidents and injuries are unexpected and can happen to anyone, anytime, which is why it’s crucial to have the right measures in place to protect you should one occur. Should an accident leave you unable to work or to keep your company ticking over, the financial implications can be significant, but an accident and injury insurance policy will provide an extra layer of protection and will cover medical expenses and rehabilitation costs as well as any loss of income as a result of the occurrence. Private medical care can be costly even for the wealthy, and a good policy will make sure you and your family can access the very best in your hour of need and support you through the recovery process without stress. Should you need to look for legal support for suffering an injury, it will also help to cover the costs.
Excess liability insurance
The liability coverage included in your homeowner’s insurance policy will often be limited, which is why it’s wise to take out an excess liability policy, or ‘umbrella’ policy, on top. Once the limits of your other policies have been exhausted, your excess liability policy will kick in and continue to shield your wealth and assets from any legal claims that surpass the ceiling of your other policies. High-net-worth individuals may find themselves more of a target for legal proceedings due to their perceived wealth, so staying one step ahead and addressing any such potential issues before they arise is a sensible thing to do. Umbrella insurance will cover a range of different liabilities, including property damage, personal injury and defamation claims, so it is more than worth the monthly premium and offers a belt-and-braces approach to protecting your wealth.
