Friday, June 22, 2018

Stay Protected this summer with an Umbrella Policy

Summer is here and millions of Americans will be hitting the road to travel and make the most of the sunny days with occasional rains. You and your family will probably be among them. You may have the safest of vehicles and be an excellent driver, but there are factors beyond your control that could affect your safety on the road.

An accident could occur at any time for no fault of your own. Fender benders are no big deal, but if it is a major accident resulting in major vehicle damage, serious injury or in the worst case, the death of someone in the car, you depend on insurance to get you through the terrible time.

Nevertheless, what happens if the driver at fault does not have auto insurance or has inadequate coverage? How will the medical and other expenses be covered? This is where an umbrella insurance policy can save you.

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This could happen to you

Peter and Martha along with their children are driving to the neighboring town for a party. The car is in good condition and Peter is a safe driver. However, the kids in the back seat soon start fighting, and this distracts Peter. He pulls over to stop the quarrel and pacify them; still distracted a bit, pulls out into the traffic without checking for other vehicles.

You are out for a Sunday drive with your family, when Peter suddenly pulls out in front of you. There is no time to avoid the imminent accident; your car is badly damaged and all of you in the car suffer major injuries.

You all need hospitalization, surgeries and long rehabilitation. If Peter is underinsured and his policy is not enough to cover your expenses, what happens? You could sue him for the money, but that will be a long battle, and he could declare himself bankrupt, in which case you are back where you started. If you have an umbrella insurance policy, that will kick in, after Peter’s policy is exhausted, to cover your medical expenses. It's as simple as that.

Obviously, this is a worst-case scenario. You hear reports of things like this always happening to others, and thank God for that. However, there is no absolute certainty that it will not happen in your case. Maybe in other contexts, what you thought the remotest possibility would have taken you by surprise by becoming a reality. Umbrella insurance is a very inexpensive way to get the extra protection you need even in a worst-case scenario.

Why an umbrella policy?

Umbrella insurance is a simple and safe way to protect yourself from situations where other insurance coverage is not enough for your medical and other expenses. An umbrella policy can also cover pain and suffering as well as emotional distress and lost wages. It is the most cost-effective way to get the extra coverage you need to remain protected.

Consult a reputed insurance broker to know more about the advantages of an umbrella policy; they will tell you what kind of coverage is right for you.

Life Insurance Questions you need to consider

Buying life insurance is a major decision that impacts not just the lives of all those who depend on you, but also your own life and the way you live your life. Life insurance is today an extremely complex subject with a vast number of companies offering a huge number of coverage options. Trying to find your way through this maze can leave you dazed to the extent that you could easily make the wrong decisions on your coverage.


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Often the flaws or nasty catches in a policy will not be realized until the holder passes away, and the dependents do not receive the benefits as the policyholder had planned. Having a life insurance policy is not enough – you must have the right and foolproof coverage.

Seeking a reputed professional insurance agent would be the best way to ensure that the policy you buy is what you actually need, and the terms and conditions of the policy have no traps. Here are a few basic questions you should consider yourself first, and later in consultation with the insurance agent.

Do you need it?

Only a person with no dependents can do without life insurance. You do need life insurance, if: you have people who depend on you; your salary is what is supporting your family (either fully or in part); you have a mortgage to pay off; you have recurring expenses. The benefits that accrue on your life insurance will meet your financial obligations after you are gone.

How much coverage do you need?

No standard formula is available to help you calculate the ideal coverage you need. It is contingent upon the number of dependents, the stages they are in life, their and your lifestyles, and the financial obligations of every one of you. There is, however, a thumb rule that the policy value should be 10 times your annual income, and here again every family is different from every other. It is important, therefore, to have professional advice when calculating the value of a tailor-made policy you should buy.

What type of policy is right for you?

Term policies that pay the insured sum promptly on the death of the policyholder are the least expensive. Whole life policies that have a death benefit, as well as cash value, are more expensive. Within these two broad categories, there are options, and so you should get again expert advice on what is right for you.

What is the right premium?

Premiums vary depending on the insurance company and the plan you opt for. Each company has its own advantages and possibly some catches. An expert insurance broker that represents different companies will be able to guide you to the right company and the right policy.

Have you covered all the bases?

It is often difficult to consider objectively all the vital factors your insurance needs to cover.  Make a detailed list of all issues that will impact your policy choice. Discuss with the insurance agent who will be able to tell you if anything is left out.

Expert guidance is essential

These basic questions show how difficult it is to make the right life insurance decisions. The guidance of an experienced insurance broker will ensure peace of mind that comes from the right coverage you have made; in case of an unwelcome eventuality, those who depend on you will not suffer financially.