Maybe you’ve heard a story similar to this one: one day Mr. Smith was backing out of his driveway just like any other day. Unbeknownst to him Mrs. Jones happened to be on her morning walk past his house. Mr. Smith was in no hurry and he was taking his time as he backed into the street. Mrs. Jones was enjoying the weather and her surrounding and didn’t quite realize that she was about to walk right into the side of Mr. Smith’s car. Obviously both parties were startled and Mr. Smith jumped out of the car to make sure everything was okay. Mrs. Jones assured him that she was fine and had simply been caught day dreaming and the both went on there way.
A couple weeks down the road Mr. Smith gets a letter from Mrs. Jones’ lawyer letting him know that he was being sued for “hitting” his client. You know how the rest of the story goes, Mrs. Jones claims the incident caused lasting damage and essentially takes everything Mr. Smith has – including garnishing some of his wages.
You may think that this is a ‘one in a million scenario’ but it’s not. The number of lawsuits in recent years is off the charts compared to what it used to be. More and more people are trying to ‘cash in’ at the expense of their peers. So the question becomes how do you protect yourself from the liquidation of your assets by some slimy money chaser?
One way is to have your money in an offshore bank account. They are not only for the rich and famous, many people use offshore bank accounts to protect their money from creditors, lawyers and bankruptcy. I would like to offer up another solution that doesn’t involve anything offshore. Did you know that in most states the cash value inside of life insurance policies is untouchable by creditors, lawyers and can’t be touched if you declare bankruptcy?
This is a little known fact that can relieve some severe headaches in the event of a pesky lawsuit, much like our fictional example of Mr. Smith and Mrs. Jones. The piece of mind that comes from knowing your money is safe and untouchable by anyone but you is just another one of the advantages of permanent or whole life insurance.
You can never be too safe in a world where a sleeping student will sue a teacher for waking them up during class, or a woman will sue her teenage neighbors for baking her cookies and bringing them to her house – both are true, look it up.
*This is not legal advice, I’m not a lawyer, and for all I know your state may handle things completely different.