The All-important Role Insurance Plays in Wealth Preservation

By Steven H. Goodman, CPA, MBA – President & Chief Executive Officer of SHG Planning

As an estate planner and business succession specialist, I’ve been advising high-net-worth individuals on how to protect their assets since the early ‘90s. Some simply want life insurance along with quality long-term care and disability insurance. Others need a more comprehensive program –– one that includes estate and succession planning ––to protect their family and/or their business. What they all have in common is that they’re looking for ways to preserve their assets, as well as have a plan in place to pass them down when the time comes.   

When your time is worth thousands of dollars an hour  

What I’ve learned over the years is that no two clients want or expect the exact same service. Some like to delegate decisions to their family office; others are more hands-on. Many are compelled to understand every detail and are deeply involved in decision making. Still others jump in only when the issue is of particular interest to them.  

Wherever you fall on the involvement spectrum, I’m fairly certain you don’t think of insurance as a money-maker. That’s why you delegate those decisions to your insurance advisor, accountant, attorney or financial planner. Your thought process probably goes something like this: “My time is worth thousands of dollars an hour. So, I’m not going to spend it on something that’s not going to save me lots of money.” What you may not realize is the far-reaching role insurance plays in preserving wealth, and how it takes multiple, well-thought-out strategies to accomplish that.

Like most affluent, successful individuals, you understand the value of setting up trust and estate plans and investing in life, long-term care and disability insurance to safeguard your assets. But, do you realize the same holds true for your more conventional coverage? If you’re underinsured or have gaps in your property and casualty coverage, there may be no home or business assets left to preserve. 

Don’t let piecemeal protection ruin your legacy

Property and casualty insurance is an essential part of any wealth-preservation equation. No doubt your home and other possessions are protected by various types of property insurance, and you have casualty or liability insurance to protect you and your business from third-party lawsuits. The question is: Are these individual policies or are they part of a cohesive plan that complements your estate planning safety net?

Because I’m intimately involved with my estate and succession planning clients, they often ask if I can help them with conventional insurance coverage as well. And, while I can, I feel the best course of action is to involve a knowledgeable and experienced insurance advisor –– one who understands the role insurance plays in asset preservation –– in the process.

What to look for when choosing an insurance advisor

Just like lawyers and accountants, insurance advisors who really know their stuff become centers of influence. They’re not just policy pushers. They add value, and even when they can’t make money, they’ll advise you as to what to do. Also, when you work with insurance providers who are committed to a long-term relationship, not just a one- off sale, you know they’ll always bring their A-game. For the best results, partner with an advisor [like the ones at JAISIN Insurance Solutions] who:

  • Specialize in coverage designed for your unique mix of assets, including airplanes, art,
    collectibles, jewelry, boat(s), vehicle(s), multiple properties in different states/countries,
    household employees, kidnap and ransom, trusts, LLCs, etc., D&O, E&O, board
    memberships
  • Advise you on how to manage your risks so you remain claim-free
  • Conduct a risk assessment regularly
  • Perform an annual insurance review
  • Understand the marketplace and are experienced in consolidating policies to lower your premiums
  • Shop for competing quotes from multiple carriers
  • Take into consideration your estate and succession plans
  • Create a cost-effective, comprehensive, individualized plan specific to your needs

The insurance advisors you want on your side are those one who take the time to get to know you and learn what’s most important to you. Then, they put their experience and expertise to work developing a cohesive strategy with one goal in mind: To help you protect what’s yours.

Steven Goodman
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