Consider your vulnerabilities
There are two areas where you are likely most vulnerable: your investments and your health.
Unless your portfolio is purely based on fixed-income investments, you have some degree of risk. There’s always a chance that market forces can reduce the value of your portfolio at any time.
When you're young with many years of investing ahead of you, you can wait out market downswings and even use the volatility to "buy low". But recovering from a bear market when you're older isn't as easy. Time now works against you, reducing the opportunity to recoup your losses.
Portfolio diversity is, of course, a critical strategy to hedge against such market losses; however, there are other insurance-based investment products, such as annuities and segregated funds, which have many advantages and may be a suitable option for your diversified investment portfolio. BlueShore’s Wealth Protection Specialists can review these options with you and recommend one that is well-aligned with your overall financial plan.
Life insurance can also be an effective means of shielding your wealth when real estate or investment markets tumble. By purchasing a policy large enough to cover the fair market value of your assets today, you can insure your estate against the risk of market losses tomorrow.
The second area you are exposed to risk is your health. It's an unfortunate fact of life that as you get older, you face a growing risk of contracting a chronic or age-related health problem. Two types of insurance can offer you some important financial protection: critical illness insurance and long-term care coverage.
Maintaining your standard of living
For most people, financial security lies in their ability to earn an income. So protecting future income should be the cornerstone of any financial plan. This is why life and disability insurance† are so important.
If your insurance coverage isn’t keeping pace with your income, your family might experience a significant drop in cash flow if you were to pass away or be unable to work for an extended period. This would have not only an immediate impact on your family's lifestyle, but could also affect your financial progress towards longer-term goals, such as retirement.
These are just a few examples of how your wealth protection needs can increase as you get older and your assets grow. Professional advice from your Financial Advisor and Wealth Protection Specialist can help you determine the protection you need for both your family and your assets.
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