True wealth is more than what you earn; what you retain and maintain also matters. Proper insurance coverage helps by protecting your assets from risks that can subtract value or cause costly harm. But do you have ample coverage? High net worth individuals often don’t. Many experience an insurance gap and require attention that’s above and beyond the scope of traditional mainstream products.

Umbrella Coverage for Reduced Liability
Sometimes those with significant wealth can be attractive litigation targets, even after less severe situations like a simple fender bender. Consider adding another layer of protection with an umbrella policy. This additional coverage picks up where your existing insurance leaves off to give you extra security and peace of mind.

Extensive Coverage for Real Estate
Whether you monetize them as rental homes or enjoy them as vacation getaways, having multiple properties in your portfolio can pose unique complications when it comes to homeowners insurance. Review your situation with a fine-toothed comb to properly insure personal property, and keep in mind that high-dollar items, like jewelry and art, may require additional endorsements.

Individualized Attention to Insurance Needs
Sophisticated asset protection may require different types of coverage. If you’re working directly with an agent who’s beholden to a single insurance company, you may be missing out on better, more protective alternatives from other insurers. An independent personal insurance manager can pick and choose policies from multiple insurers to get you coverage that’s customized to your needs.

Just because you’re adept at acquiring assets doesn’t mean you’re as savvy when it comes to protecting them. Choosing the right policies to insure your property will help guard your net worth against unexpected drops in value due to accident, theft and more.

The information provided in Eddleman’s Economic Insight is not intended to be used as investment advice; rather it is provided as general economic news and information for your awareness or for discussions with your investment professional. Please consult your investment professional or CPA for advice specific to your situation! Past performance is not indicative of future results.

Like estate planning, long-term care insurance is a critical component of a financially secure future, but many people tend to put it off or actively avoid it. Planning ahead helps you avoid burdening your family and loved ones with the mental and financial costs of providing care. Read on for more about adding a long-term care policy to your overall wealth portfolio and what to consider along the way.

  • Chances are high you may benefit from this coverage. Thanks to modern medicine, we’re living longer than ever. But that also means we’re more susceptible to cognitive impairment as we age, and that often makes daily activities difficult enough to require assistance. Hiring help to perform activities of daily living can be costly, particularly if conditions persist indefinitely, since Medicare payments cease if your stay in a skilled nursing facility exceeds 100 days. From Day 101 on, you will be responsible for all costs.
  • Long-term care insurance policies aren’t getting better. The unfortunate reality is that this kind of coverage is an increasing loss leader for insurance companies. When long-term care is needed, it’s usually necessary until death, which means extended payout periods for insurance companies. Fewer companies offer long-term care contracts, and many of those that do have significantly increased premiums on existing policies. If you’re interested in long-term care coverage, consider shopping sooner rather than later.
  • Buy early, or put an alternative plan in place. Those in their 30s and 40s with a few decades to spare may look into alternate ways of paying for long-term care. Having more options to address future needs, like a health savings account or long-term care annuities, can provide security and flexibility as the insurance industry continues to evolve.

Before biting the bullet on long-term care coverage, weigh your options to come up with the strategy that best fits your lifestyle and needs.

The information provided in Eddleman’s Economic Insight is not intended to be used as investment advice; rather it is provided as general economic news and information for your awareness or for discussions with your investment professional. Please consult your investment professional or CPA for advice specific to your situation! Past performance is not indicative of future results.