FINANCIAL PROTECTION

The truth is that you don't really "need" insurance. Trouble is, while this statement is probably correct, it is at the same time inaccurate because it isn't the ‘whole story' for this topic. You may not need it... but your family does. The fact is that until such time as your wealth is large enough for you to ‘self-insure', your family needs a contingency in place or - to be more accurate - your family needs a ‘bridge-of-protection' until you can self-insure.

We all know that the choices and types of insurance are almost endless. By its very nature, insurance is primarily a tool for solving problems of adversity, rather than building prosperity. While we are building our wealth, it surely makes sense for example, to ensure that our children will have their education funded properly in the manner we wanted, whether we survive to do that personally or not. Going to one extreme, you can insure to the point where there is little left for actually creating wealth. At the other extreme, our family can take the risk by having no financial protection. Where do we - or how should we - draw the balancing line?

At Lighthouse, we help our clients operate reasonable and appropriate levels of financial protection which aim to balance cost and effectiveness with actual need. That way, the priority for your available resources can still remain oriented toward building your wealth. Of course, changes in your circumstances along the way will inevitably impact those needs - positively or negatively - but at least the needs of your family can be better balanced with your wealth goals. Then, as your wealth grows you can begin reducing the protective solutions in place until such time as you do become self-insured.

At Lighthouse, we believe that on your financial journey, your ship shouldn't rely solely on its engine to arrive at port. If you run out of fuel or the engine breaks down, you should still have a set of sails to unfurl that can take you to safe harbour. It might not be the port you wanted, but at least it will be dry land.

Interested? Need to discuss?

We are looking forward to hearing from you