Leah Kelvin
Active member
Wealth management necessitates insurance to safeguard assets, manage risks and provide financial security. For instance, property and casualty insurance protects against unexpected occurrences that may result in the loss of assets such as theft or damage. Insurance promotes risk management by offering support for dependents when the breadwinner dies or becomes incapacitated. This is because some types of policies offer tax advantages such as cash value policies. Moreover, insurance can be used for estate planning purposes to create liquidity for estate taxes and help in ensuring inheritance.
Insurance is vital for business continuity and succession planning purposes. This implies that it insures key individuals in a company who are deemed crucial to its survival so that it does not suffer financial loss in case they die or become disabled. On the other hand, life insurance funded buy-sell agreements work best during ownership transfers within a company due to death of one partner. Life insurance also helps with wealth transfer and legacy planning allowing assets to be passed on tax-efficiently while equalizing inheritances. Trust-owned life insurance provides both control over policy proceeds and creditor protection. Generally, this means that wealth management involves providing protection, addressing risks, creating tax benefits as well as strategic plans that will lead towards achieving goals of finance, asset preservation and finally leaving a lasting heritage which provides peace from unforeseen risks.
Insurance is vital for business continuity and succession planning purposes. This implies that it insures key individuals in a company who are deemed crucial to its survival so that it does not suffer financial loss in case they die or become disabled. On the other hand, life insurance funded buy-sell agreements work best during ownership transfers within a company due to death of one partner. Life insurance also helps with wealth transfer and legacy planning allowing assets to be passed on tax-efficiently while equalizing inheritances. Trust-owned life insurance provides both control over policy proceeds and creditor protection. Generally, this means that wealth management involves providing protection, addressing risks, creating tax benefits as well as strategic plans that will lead towards achieving goals of finance, asset preservation and finally leaving a lasting heritage which provides peace from unforeseen risks.
