Truth: As time passes and your family grows, there may be different needs and lifestyle changes, debts or milestone plans that you have to cover. Perhaps you have college-going children and you need to ensure that their education is not disrupted, or you may have plans to make milestone purchases such as a second (or third) home, or a yacht! Apart from maintaining control of your family’s lifestyle for the next 10-15 years, you will want to look at protecting your new assets and milestone plans.
In your forties, as your net worth increases, so does your insurance needs. You may be covered for the basics in insurance (health, car, home) as you may have acquired those policies in your twenties or thirties. However your new assets may require further protection. Beyond your largest investments, such as homes, cars, or boats, you may wish to look into a high-net worth insurance policy which will provide customised protection to recover or replace items such as paintings, jewellery, and sculptures. Beyond that, insurance can also help you protect maintenance expenses such as the cost of your household staff, drivers, landscape artist and other contractors.
If you’re a business owner, you may also wish to look into excess liability insurance to protect you from major claims and lawsuits, which, in turn, helps protect your personal assets and your future.
Finally, you may have acquired a number of insurance policies over the years (some through your credit card perhaps) which may be overlapping, meaning you may be paying too much in insurance premiums. It would be advisable to review all your policies, to see where you can optimise your coverage, yet be sure that you are well-protected. If you have ageing assets which you plan to keep, have them revalued and insure them accordingly. Insurance products have also evolved and your financial or insurance advisor should be able to highlight the policies which aren’t serving you and guide you to new plans which may allow you to consolidate your insurance needs.