Smart Money Strategy

CHAPTER 13The Wealth Protection Strategies

As a society we pay close attention to protecting our cars, homes and business property. When it comes to protection, most people think insurance.

This kind of insurance is called general insurance and is widely available. Sure, you'd be annoyed if someone broke into your house and stole your new flat-screen TV. That's one reason why you'd take out contents insurance so you could replace your home contents if they were stolen or damaged — it's a financial protection against having to find the money for replacing the things you've lost.

Although it's important to protect your material possessions, they're not the focus of the Wealth Protection Strategies I talk about in this chapter. The Wealth Protection Strategies look at protecting your biggest asset — you. Without you, who will raise the kids? Who will earn an income? Who will pay for school expenses and pay off the mortgage? Many people have a 30-year mortgage that in some situations is secured by only two weeks’ sick leave with their employer! Protecting yourself is an important part of strategy stacking, and it becomes even more important when you've got family relying on you.

When it comes to protecting yourself, there are certain situations you can insure for. The kinds of insurance I'm talking about here are personal insurances. They're less widely known and understood than home and contents insurances; in some cases, they even get forgotten about when they're needed most. ...