Understand the importance of heritage protection and check out how life insurance can increase the security of your assets!
Heritage protection is a strategy that can increase the security of your assets, in addition to offering more peace of mind for your loved ones.
With this practice, it is possible to reduce the possibilities of damage in case of unforeseen events. In addition, it offers greater autonomy to the owner, and guarantees legal measures to conserve their possessions.
However, many people may have doubts about what heritage protection means and how to carry out this procedure. Therefore, it is worth knowing more about the concept.
See how it works and the risks of not insuring your assets in the content we’ve prepared!
What is Asset Protection?
Asset protection is a set of legal practices that increase the security of an individual’s assets and possessions against unforeseen events. In addition, they also make up strategies that can be accessed if something unforeseen happens.
In this way, the owner will be able to protect himself against any losses or indebtedness that compromise his safety or the comfort of his dependents.
There are several ways to carry out this protection, including through life insurance, which are intended to provide more peace of mind at times when your finances are at risk.
What is the importance of heritage protection?
There are several everyday situations that can compromise your assets and financial security, especially unforeseen events.
These occasions are usually associated only with people with companies or partners, but other types of events, such as death or accidents, can put your stability at risk.
For this reason, carrying out asset protection is important for your assets, ensuring that part of your possessions and capital are reserved and available to meet these unexpected moments.
What is the difference between asset protection and asset shielding?
The difference between asset protection and asset shielding are the guarantees used by the owner and the intentions behind that security.
In the first case, the holder draws up measures to preserve part of his assets for times when his financial health is at risk. All strategies are legal.
An example is property protection with life insurance, a service that aims to protect the contractor and their beneficiaries in unforeseen circumstances, avoiding a very high impact on the budget.
In addition, this practice must be certified and controlled by an agency of the Federal Government, such as the Superintendence of Private Insurance (SUSEP), as provided for in the Civil Code.
Meanwhile, the so-called “shielding” is a measure with malicious intent, which aims to circumvent the law to prevent the seizure of assets by justice through transfer to third parties.
How does asset protection work?
Asset protection works based on legal services with a preventive nature. In other words, they are strategies to ensure the security of assets before something happens.
There are several ways to carry out this protection, such as investments, for example. Many people separate their assets and capital into savings, stocks or separation of possessions in the case of companies.
In addition, property protection with life insurance has also become a popular alternative, mainly due to the possibility of receiving financial support if something happens.
What are the risks of not having asset protection?
If you choose not to protect your assets, you may be taking some risks. Check out the main ones:
In many cases, the owner’s legal heirs may enter into family disputes over the property after the owner’s death.
Not only does this delay the division of possessions, it can also compromise the safety and comfort of your loved ones.
These disputes can last for months or years, in addition to being a long, bureaucratic and tiring process for both parties. Over time, assets can be compromised, especially if they are not invested.
Not having succession planning
The lack of heritage protection can compromise your succession planning, a measure that helps in the preparation of your will and the division of your inheritance.
Unexpected moments can be delicate for the family, especially without direction or indication of who will be entitled to insurance and possessions.
In addition, this planning also contributes to offering greater comfort to your loved ones in terms of expenses, such as costs during the inventory period , for example.
Taxation and tax issues
One of the main benefits of asset protection with life insurance and other measures is the reduction in tax issues.
In other words, failing to insure your assets can bring more tax and reporting costs, such as income tax deductions.
In fact, taxation in the Brazilian system is one of the highest, and makes succession and property transfer processes more expensive for family members, in addition to compromising the acquired property.
Meanwhile, not protecting your assets can also present risks with labor lawsuits.
For entrepreneurs and contractors, there is the possibility of blocking or seizing assets to cover the costs of this type of judicial approach.
Still, for workers, failing to guarantee the safety of goods through labor measures can also pose a risk. After all, tools like the Severance Indemnity Fund (FGTS) and social security contributions are a right that can be redeemed in the future.
Thus, it is essential to monitor this protection properly, to avoid problems in this area.
Unexpected events such as personal accidents can take a significant toll on the budget, especially for managing hospital costs and treatments.
Without asset protection, the holder’s assets are exposed and may end up being liquidated to ensure that all expenses are paid.
On the other hand, alternatives such as life insurance not only increase the security of possessions, but also offer specialized financial support for this type of unforeseen event.
In this way, the owner does not risk having his assets liquidated, and can use a reserve specially dedicated for accidents.
How to carry out asset protection with life insurance?
One of the main ways to increase the security of your assets is to carry out asset protection with life insurance.
This preventive measure allows the owner not only to keep part of his capital safely, in a reliable company, but also to have cover for contingencies, with indemnities that reduce the impact on the budget.
To carry out this contract, just find an insurer of your choice and evaluate which types of policy match your profile and your needs.
There are several coverages, from basic, such as death insurance, to specialized categories, such as serious illness or disability. If the claim is in the contract, you and your dependents will receive compensation to deal with the event in the best possible way.
In addition, life insurance is not included in the Income Tax, without suffering taxation, and is not considered equity for the division in the legal will.
In this way, only its beneficiaries will receive financial support as contracted, without interfering with the legal will.
Is asset protection worth doing?
If you want to increase the security of your assets, reduce tax discounts and provide more peace of mind for your family, it is worth carrying out heritage protection.
There are several ways to protect your possessions, including life insurance, which also provide greater financial support for unforeseen situations.
In addition, it reduces the chances of blockages and reduces succession disputes, with greater autonomy for you to manage your assets and inheritances as you prefer.
For this reason, it is interesting to consider this measure, and opt for alternatives that are advantageous, such as life insurance.