Insulate and Protect your Assets

A little while back, we published a blog on asset protection. In the wake of recovery from multiple domestic and global events that have left millions of people vulnerable and impacted by heavy losses, we felt it prudent to revisit the ideas from that blog to help you with the information you need to protect your family and your finances.

Asset protection helps us to insulate and protect our assets legally. Adequate asset protection should be in place before a claim or liability occurs since it is too late to initiate any worthwhile protection after the fact. At SFP, we sometimes advise clients to explore the option of using short-term insurance to protect their assets.

Short-term insurance can be very versatile because it can be taken out over the period that you need it. These policies can generally cover anything from property and household to travel and business insurance.

The clever thing about short-term insurance is that it caters to our ever-changing needs. It typically applies to assets that have their insurance needs changing over time. This is useful because the finite nature of the policy gives us flexibility. It provides cover without locking us into one standard of living. It allows us to upgrade our car or buy a new house without paying insurance on our old assets for the rest of our lives.

The premiums that we pay are worked out according to our individual risk profiles and the value of the asset that is being insured. Let’s say we are insuring a car, for example. Our age, gender, driving record, the value of the car, the area where the car is regularly parked and whether we have an anti-theft device installed are all factors that are taken into consideration when calculating the premiums that we will pay. Our previous insurance history is also taken into account, so the sooner we can create a reputable record, the better.