If you are at-fault in a bad accident and there’s an injury, you’re going to wish you had personal liability umbrella coverage.
A Personal Liability Umbrella Policy “sits-over” your home and auto liability limits. Coverage limits start at $1,000,000 and provides you protection from lawsuits.
Coverage is relatively inexpensive to purchase. $1,000,000 of coverage sitting over two autos and a home would cost about $200 annually.
Umbrella Policies require underlying motor vehicle liability limits of $250,000 per person/ $500,000 per accident.
In addition to coverage limits, insurance companies provide legal defense.
So, in essence, when you purchase higher limits you are also purchasing improved legal defense.
Umbrella Insurance protects your assets. If you don’t have an umbrella policy, you should. It’s an important part of one’s financial portfolio.
In an ideal insurance world, you want your liability coverage to, at least, match the amount of your assets.
Regarding retirement plans:
“Most plans that fall under ERISA act (Employee Retirement Income Security Act) cannot be touched by a creditor if you’re sued. Most 401k plans fall under ERISA. IRA’s, on the other hand, are typically not ERISA plans, and can be lost if sued.”
So, most 401K plans cannot be touched. IRA’s can be.
Please call or click if you would like to discuss Personal Liability Umbrella Coverage.