Risk management is intended to shield your assets and future income from risks of lawsuit, disability, and death. Your first line of defense is to identify the area of risk and either avoid it altogether or at least minimize it. Insurance stands as the last line of defense for you.
Asset protection planning manages the risks to your wealth or accumulated assets. Lawsuits, accidents, property damage, and other financial risks are part of everyday life in America, and asset protection planning looks to transfer or deflect the risk of these situations through:
- Insurance
- Repositioning or retitling asset ownership
- Other protection available under the law (depending on your state of residence)
Life insurance planning is a relatively simple and guaranteed way to create an “instant estate” for your family to continue to rely on for their future needs, allowing the wealth that you have worked hard to accumulate not be spent down on items for costs that you did not intend for it to go to.