Financial planning is a process which involves setting and meeting your life goals through the appropriate management of your finances. Saving for your retirement is the most common goal for our clients followed by investing in an education fund. Other goals include purchasing a home or other big ticket items.
These goals are achieved by wealth creation and growth through investment, a key element of any financial plan. However, there is a second, often neglected, aspect to a sound financial plan: protecting your existing assets and financial resources to secure the future wellbeing of your family.
We spend much of our lives building up our assets and accumulating items of value such as cars, homes, savings and investments. However, just because we can afford those things now, doesn’t mean that we will always be able to do so. Life can throw us any number of curve balls from a serious illness to an unexpected redundancy, or even a premature death. That’s why wealth protection is essential. Sadly, millions find out about the importance of wealth protection when it is too late.
Your most valuable asset is not your car or your home; IT IS YOU!
Your ability to earn a living and provide for your family now and in the future is your most valuable asset. Just imagine if you lost that ability. How long could you and your family survive without a monthly salary before descending into financial chaos?
There are a number of different types of insurance which can guarantee the financial wellbeing of your loved ones in the face of certain unforeseen life events. These are important because, much as we like to believe that we are in control, we simply cannot predict the twists and turns we will experience in life.
While you can’t shield yourself against every difficulty life might have in store for you, you can take steps to protect yourself and your family from the fallout of unexpected events with solid wealth protection measures. We outline the most important of these below.
- Health insurance – if you or a family member contracts an illness which is costly to treat you will appreciate the peace of mind of knowing that the bills will be covered by the insurance company, not you.
- Life insurance – under a life insurance policy the insurer will pay a lump sum to your loved ones if you pass away. This should be sufficient for them to pay off outstanding debts and cover their living costs on an ongoing basis. You can’t protect your family from the hurt of such a loss but you can protect their lifestyle and maintain their financial stability to soften the impact.
- Critical illness cover – debilitating illnesses and injuries can very swiftly decimate your savings if you are unable to work. Protect against this possibility with critical illness cover which will pay you a lump sum to cover you while you recover from a list of specific medical conditions including the big three: stroke, heart attack and cancer.
- A will – this is essential to ensure that your assets are distributed as you wish them to be after your death. Making assumptions regarding what will happen if you don’t have a will is unwise and can lead to family disputes. Leave no room for doubt by having a watertight and professionally drafted will in place.
- Guardians for your children – If you fail to nominate guardians then this decision will be left up to a court and there is no guarantee their choice will be the same as yours. Have your wishes formalised in writing to avoid any issues.
If you feel there are some gaps in your wealth protection, we would be delighted to help you plug them with relevant insurance and estate planning measures. If you are an expat in Asia looking to put measures in place to protect you and your loved ones financially, contact us today.