Has your Insurance Solutions LLC agent offered you umbrella insurance? If you declined in your 20s or 30s, but they ask again when you turn 40, you might wonder why. Your Omaha, NE, agent did listen to you, but they know that financial needs change as we age. Here’s why they asked if you want to add umbrella insurance when you turn 40.
Umbrella Insurance Protects You from Paying Settlements Out of Pocket
Secondary umbrella coverage increases your liability coverage. If you incur liability for any reason, such as causing a car accident or libeling someone, it pays out after you exhaust your liability coverage in your primary policy.
A Fictional Example of How Umbrella Insurance Helps
Let’s say John Doe, 25, causes an auto accident in Omaha, NE, that injured five people. He carried auto coverage with minimum liability coverage and no umbrella coverage. The accident settlement cost $75,000. His policy covered $50,000; he paid $25,000 out of pocket by emptying his savings and retirement accounts. Doe’s young, though, and he doubles his savings and retirement deposits for a few years to pay himself back.
Consider what happens if Doe causes the accident when he’s 45 or 55, though. Now, he doesn’t have 40 years to pay himself back. He has to make up that $25,000 and the interest he’d earn on it in 10 or 20 years.
How Umbrella Insurance Helps
After a person turns 40, they have less time to recoup money paid out of pocket to cover a settlement. If they want to retire by age 65, they may not have time to pay themselves back for what they spent. With umbrella coverage, the insurance pays the settlement up to the coverage limit. Most umbrella policies start with $1 million of coverage, which provides more than enough to cover most settlements.
Contact Us Today
Don’t wait to add umbrella coverage. Call or phone Insurance Solutions LLC today to buy your policy.
