So, a few weeks ago, DH and I were visiting with our insurance agent. We had to get a new life insurance policy as our current 20 year term (where does the time go)? policy is expiring. We got all of that set up and then started our annual review.
Our agent (who we really like and trust) brought up umbrella policies. Part of the reason she did, was because we have a teenager and a semi-adult (20 year old who lives with us during the summer since she is in college). She was explaining to us that if something tragic happened, obviously we could be sued. We have $250,000.00 on our homeowners right now and that an umbrella policy of 1 million might be a good idea. She said that people that tend to sue, typically will settle if someone has a 1 mi umbrella policy rather than going to court. If you only have $250K, they are much more likely to go after your other assets like your 401K ect. She also said that an attorney could argue that someone with $650K in assets, and only $250K on your homeowners policy, wasn't doing their due diligence.
So, for about $17/mo we could have this umbrella policy....we can afford this no problem.
Our agent is not pushy or dramatic.....just offering the information up.
So...my question is for all you is....does anyone have this policy? What if any is your experience? Any pro's or con's that you could think of on why we should or shouldn't do it?
Thanks much!
Umbrella policy....your thoughts and/or experiences
May 23rd, 2012 at 08:39 pm
May 23rd, 2012 at 09:20 pm 1337808040
May 23rd, 2012 at 09:33 pm 1337808796
May 23rd, 2012 at 09:36 pm 1337808984
I think your insurance agent speaks the truth.
Deciding factor was when the in-laws got in a messy lawsuit, made worse by lack of insurance. We decided to just get the insurance, at that point in time. I also learned that retirement funds are not safe from lawsuit, etc. {Depends on your state, of course}. So I suppose these were both eye openers for us. Living in a sue-happy big city, it may be a lot more important than if you live in a different kind of area.
May 23rd, 2012 at 11:42 pm 1337816542
May 25th, 2012 at 12:03 am 1337904214
May 25th, 2012 at 03:42 am 1337917375
May 28th, 2012 at 01:50 pm 1338213059
Jerry