Why Get Life Insurance

How Can Insurance Help Protect My Assets?

You work hard for the nice things in your life and you should work hard to be sure they are protected. There are many different types of insurance that are effectively designed to protect your assets.

Protect Your Assets Using the Right Insurance

Using insurance to protect your assets

How Can Insurance Help Protect My Assets?

The website Investopedia.com as of March 2016 describes asset protection as, “The concept of and strategies for guarding one's wealth.” Simply put, asset protection is a way to plan ahead to protect what you have from creditor claims - should they arise.

While you may not be a brain surgeon who is regularly exposed to liability claims, don't think that you're excluded from everyday risks that can endanger what you've worked so hard for. Thankfully, there are many different types of insurance and some can be an effective tool for protecting your personal assets.

Life Insurance.

Your greatest asset is your income. Therefore, it makes sense to protect it, right? The fact is, when you die, your paychecks stop. Life insurance helps ensure that your loved ones will have enough money to pay the rent/mortgage, keep up with the car payments, and pay for everyday living expenses such as gas, groceries, and utilities after you're gone.

Homeowners Insurance.

Homeowners insurance isn't just about protecting what is probably your single largest investment against fire and flood, but also about protecting you against a potential lawsuit. If someone is hurt on your property and decides to sue you, any liability coverage on your policy could defend you against lawsuits that fall under the terms of your policy, and satisfy any court-ordered judgments up to the amount specified in your contract.

Auto Insurance.

Don't settle for the minimum legal liability coverage on your auto insurance policy. If you're involved in an accident that results in a lawsuit, you'll be glad that you decided to pay a higher premium for the extra coverage. How much coverage should you buy? A possible guideline could be to have coverage that is equal to your total assets.

Umbrella Liability Insurance.

If a lawsuit is brought against you and your homeowners, auto, or other type of liability coverage isn't enough to cover the total expense, an umbrella policy can pick up where your coverage leaves off. For example, if you have a $1million dollar auto liability policy and are served with a $2 million dollar judgment, your umbrella policy should pay the additional $1 million. Without it, plaintiffs could seize your assets and garnish your wages to pay for the damages.

Long-Term Care Insurance.

There are certain things that your healthcare policy won't cover - especially if you were to suffer a long-term illness or disability. Long-term care insurance pays for certain coverages that you could be left paying for out of pocket. Without it, you may have to cover these expenses by liquidating your retirement savings or even selling your home or other assets.

Asset protection is a critical part of a sound financial plan. If you're not sure if you have the right coverage, or if you think you may not have enough, make an appointment with a qualified insurance agent, company representative, or financial advisor. If you'd like to learn more, visit the Protective Learning Center.

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Asset Protection

You work hard all of your life to be able to buy a new home, support a growing family, and save for retirement. Are you willing to put all of that at risk? This article looks at the important role that insurance plays in protecting your personal assets. For more information, visit the Protective Life Learning Center.


All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

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