Getting wealthy and staying wealthy are chalk and cheese

Throughout history, wealth has often been divided into two categories: The generational wealth of families and the “new wealth” created and built by the current generation. But this dichotomy leaves out two important sub-categories: Those who build wealth and stay wealthy and those who lose it. As it turns out, building wealth is only part of the process. It’s equally taxing to stay wealthy in the face of market volatility, the ever-changing regulatory environment, and uncertain geopolitical situations globally.

This article delves deeper into the nuances of building and maintaining wealth while touching upon how high-value offshore insurance can help.

Getting wealthy

There are a variety of ways that families and individuals build wealth. Starting a business is one of the most common paths for the so-called “new wealth”. If that business is successful, the owner and the family may find themselves with wealth that far supersedes that of previous generations. However, this road to wealth takes work, dedication, recurring investments, sizable capital, and, unfortunately, a bit of luck. So, it is easy to see why not every business will be successful financially.

But wealth can also be built at a slower, more modest rate. Making small and smart investments over time, too, can help a family grow wealth without requiring major upfront capital deployment. Parents can also make smart investments during their lifetime to create generational wealth for their heirs. For HNWIs, investing in high-value offshore life insurance is a great option.

Much like other life insurance types, offshore products from reinsurers accompany a variety of benefits and levels of coverage. This insurance can help protect your family from financial hardship in the event of your unexpected passing. It helps safeguard the wealth you have built during your lifetime. It can also be used as collateral to borrow loans and finance other income-generating ventures.

Staying wealthy

Say you have accrued some wealth — however, maintaining that wealth and growing it for your family boils down to strategy. The most advised way to protect your wealth is to keep your indulgences in check and avoid overly risky investments. But even if you stay rational in your spending and make smart decisions with your savings and investments, it may not be enough because of unforeseen events.

For example, a family member passes earlier than expected, taking with them a source of income, as well as other things that are tough to assign a financial value to — like business acumen and the networking capabilities that elude the beneficiaries and heirs. Also, an individual may suffer a debilitating injury that not only keeps them from working but also requires expensive medical care.

In either case, it’s easy for the surviving family members or the recovering individual to quickly burn any accumulated savings. High-value offshore life insurance can help by protecting the wealth you’ve built. You and your family can enjoy the comfort of a financial safety net in case a disaster strikes. Even if the circumstances of the passing are natural, your life insurance policy can provide added financial relief to your beneficiaries.

In fact, there is no dearth of stories of wealthy people who fell from grace financially following the passing of a patriarch/matriarch. As often as not, the causal factors are improper financial planning, a lack of safety net, and highly leveraged businesses. While one cannot foretell what the financial markets have in store, it is not hard to earmark a certain amount to independent investments such as high-value offshore life insurance. Regardless of corporate outcomes, rest assured the payout can help the beneficiaries sustain their lifestyles and tide themselves over till a ray of hope emerges.