Building wealth is something most people can understand, as it is central to most people’s motivation daily. Even for people who are starting out in their careers, be in as a small cog in a large corporation or you are starting your journey as a self-employed contractor, you might be years away from earning a large sum of money on an annual basis. But you wake up every morning with the same goal, you work towards success and hope to earn a comfortable living one day.
Regardless of the stage of life we are at most of us are concerned about building wealth, to give us much more freedom to do what we want and buy what we want in the future. We are all aware of the fact that we need to build a strong asset base to provide security for our future and the future of the people we love.
Despite being completely focused on building wealth, too many people forget to protect this wealth, this concept all too often neglected until it too late. Everyone knows that life can be unpredictable, and as much as we would like them too, the best laid plans don’t always come to fruition.
Have you considered what will happen to your dependents if your wealth is not protected?
Not having adequate wealth protection in place to cover your life, car, home or business, can have a hugely negative impact on any previous efforts you had made to create this wealth. It is impossible to predict the future, but you can foresee the difficulties that will arise if you find a structural issue with your home or you are killed or injured in an accident. The impact that this will have on both on your stress levels as well as those of your family, never-mind the severe impact one of these incidents can have on your finances.
You and your family will be forced to tap into any savings or assets they have to try to make up for the costs of repairs or shortfalls that might occur due to loss of earnings. You may be forced to scrap all your best laid plans and start again.
Wealth protection can prevent such financial crises from occurring
So many different events can cause severe financial hardship to occur if you are either uninsured or under insured. A car accident, a natural disaster like we experienced with the Townsville floods or a fire in your home. Any event such as these can result in severe financial hardships. All these issues can be resolved by making sure you have proper insurance. While most people will have insurance, there is a common tendency to only get the most basic of cover. Low levels of life insurance and income protection, third party instead of fully comprehensive car insurance, homes not covered for damage, etc. Checking all your insurance policies to ensure you have enough cover, will prevent any of these types of incidents occurring.
Life insurance cover is one of the most neglected financial products that every person needs. While many people do have insurance policies, most have completely inadequate cover. They have policies that are years old, based on financial projections that are no longer accurate and completely inadequate. If you have an old insurance cover, consult your provider to make sure it covers your wealth, in the event of your untimely death. Remember your family and dependents have needs that will need to be met.
For more information, contact us on 07 4779 0555 to arrange a complimentary initial interview with a Best Wealth Creation Adviser.