Millions of Americans are nearing retirement age. They have played by the rules, set aside a comfortable nest egg and look forward to having spare time and money to enjoy life. Unfortunately, many are more at risk for financial hardship than they realize. Here is what you need to know about protecting your financial freedom and how to solve the entire problem with just a phone call.
The cost of lawsuits, medical bills, rehabilitation and other liabilities can far surpass the average savings or retirement account of most people. That's what you have insurance for right? Well, yes and no. Many insurance policies have limits to the amount of liability coverage – for example, a common limit for auto insurance is $300,000 per accident, leaving you responsible for the rest.
In plain language, this means you and all of your hard-earned assets could be at potential risk should a major liability claim be assessed against you. Sadly, accidents do happen. Without adequate coverage the victim of the accident or injury as well as your own life can be dramatically impacted.
There is a solution!
Umbrella insurance is designed to cover liability after your auto or homeowners coverage is exhausted. It is a cost-effective method to ensure you have the coverage you need in the event of a catastrophic event; in fact, a million-dollar policy may cost as little as $300 per year.
Not sure how much umbrella insurance you need?
Experts suggest purchasing umbrella insurance equal to at least double your net worth. To calculate your net worth simply add up all of your assets then subtract all of your debt. Don't forget to include your home, collectibles, retirement accounts, cash on hand and future distributions related to trusts or inheritance.