An Asset Protection Primer – Part 3 of 4

Rule number 3:  Consider insurance the right kinds of insurance. Many liability claims arise out a claim of negligence against an alleged wrongdoer, such as an auto accident, or perhaps professional malpractice.  Most insurance is designed to cover losses caused by someone s negligence. A question that is sometimes asked is whether or not a particular kind of insurance is a good investment.  That is the wrong question.  Insurance is not an investment, but instead a risk management tool. One should consider insurance for activities in which they participate which could cause them to be exposed to liability or loss that they could not afford to pay.   Common examples that are familiar are auto insurance and homeowners insurance.  Many persons also have health insurance and life insurance. Often overlooked, however, are disability insurance, expecially for breadwinners and, later in life, long term care insurance. However, for those with businesses, other insurance should


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