From protecting your hard-earned savings and investments to ensuring your family and loved ones are taken care of in the years to come, wealth protection planning is crucial in securing your financial future safeguarding your assets from various risks.
A wealth protection plan may include various strategies to create a more comprehensive solution according to your needs. Learn more about the importance of a future wealth plan and the ways you can protect your assets and investments below:
- Insurance. This is an essential component of wealth protection plans, providing financial security for the heirs of the policyholder. One of these is Life insurance, which can be used to cover funeral expenses, pay off debts, and provide a source of income for your heirs in the event of your death.
Another one is health insurance. This will cover your medical expenses should you encounter health issues. Having this type of coverage can help reduce the financial impact of such an event.
If you have a business, consider getting keyman insurance. This can help ensure the continued operation of the business and find a suitable replacement if a key person in the organization dies. This type of insurance may also have an investment component. You can use the gains from your investment to help further grow your business. - Estate planning. This is where you lay out how your assets will be distributed to your heirs in the most efficient manner. When done well, estate planning can help minimize the financial burden on your loved ones when your assets are eventually transferred to their name.
This process may include taking out life insurance and setting up irrevocable trusts. The right solution will depend on many factors, so it is best that you consult with an estate lawyer to discuss what works best in your situation. - Diversification. Ideally, you should diversify your investment portfolio to help secure your wealth. If you currently invest in stocks, you may want to diversify it further by investing in bonds, Unit Investment Trust Funds (UITFs), and other types of assets. Doing so spreads out your risk if one or several of your investments perform poorly.
Also, consider investing in different sectors and geographical regions, as this will allow you to minimize your risk exposure even more. For example, if you have assets in the Philippines, the US, and Japan, and the tech market in the US performs poorly, the other two markets might be able to help reduce the impact on your portfolio.
You can get started with your wealth protection planning by reaching out to any of AXA’s financial advisors. From offering flexible life insurance products and savings and investment plans to assisting you in your financial journey, AXA is ready to help you get closer to your life goals and protect your legacy.
Know you can game plan your way to protecting your wealth by availing of any of AXA’s savings and investment plans. For more information, contact an AXA financial advisor today.
