One of the most certain things in life is uncertainty. Your dog could bite the neighbor’s kid. Your teen driver could hit a cyclist. A guest could fall down your stairs. A rainy morning commute on worn-out tires could result in a multi-car accident. And you could be held liable to others for the cost of damages – injuries, property destruction, emotional distress, lost wages and more. Good thing you have insurance. But, wait, your policy covers $300,000 of liability, and, in a lawsuit, you’re judged liable for $1 million. That leaves $700,000 left to pay. How will you cover it? If you have umbrella insurance and your policy covers the incident, the additional $700,000 will come from your policy. If not, it will come from the assets you have now, such as your home and savings, and from future assets, such as your wages or inheritance. The fact is, it only takes one serious accident and a resulting lawsuit to put everything you own - and will own - at risk. And it only takes one umbrella policy to help protect it all. Here are a few things you should know about umbrella insurance: Personal umbrella policies typically offer between one and five million dollars of liability coverage. Consider your net worth when choosing your coverage –you could be sued for everything you have. An umbrella policy is not a stand-alone policy. Your insurance carrier will typically require you to meet certain qualifications, such as having an auto policy with a certain level of liability coverage, in order to purchase umbrella insurance. Even when you have umbrella insurance, your car or home insurance is your first line of defense. For example, if you are liable for $2 million in a car accident and your auto insurance covers $500,000 of liability, your auto policy covers the first $500,000. Your umbrella policy covers the remaining $1.5 million, assuming your policy covers the incident and that you purchased that much coverage. If you are liable for $250,000 in an accident on your property and your homeowners insurance covers $300,000, your umbrella policy won’t be needed. If you insure a motorcycle, ATV, golf cart, snowmobile, motor-home, or watercraft, your umbrella policy may provide additional liability coverage on top of those policies as well. Be sure to check with your agent to confirm your coverage on these types of vehicles. A single umbrella policy typically covers all of your family members who are residents of your household. Essentially, an umbrella policy gives you excess liability coverage on top of what your other policies provide. If you’re at fault for a serious accident, you’ll need it. Umbrella insurance also gives you liability coverage in instances where other policies don’t. Examples include driving in a foreign country or renting a boat. If you’re curious about how umbrella insurance might play a role in protecting the life you’ve built or plan to build, talk to your agent today.

1. You can't afford it.... You would be surprised how many people dismiss the idea in their head even though it's a concern for them because they think they can't afford life insurance. In reality, each persons situation is different. Life insurance, especially when you are younger, can be extremely affordable. We recommend asking a life insurance specialist to review your needs with you. You may realize you can't afford NOT to have it. 2. My Partner/Myself are employed. They/I will be just fine. We don't need it.... It is great that you guys are employed and able to work! But would you or your partner be able to continue living the same quality of life if your income, or theirs, wasn't coming into the household anymore? We see many young couples and young families with both adults working who feel this way. Our recommendation? Look at your current situation, (mortgagee, child care, household chores, household bills, vehicles, debt, etc) See what would happen if you took one person away? Would your partner need to put the kids in daycare? Would someone need to be paid to help clean the house or meal prep? Would you still be able to pay all the bills, keep that house, save for retirement, go on vacation if that second income wasn't there? 3. We don't have any debt, they could just sell the house.... Congrats on being debt free! That is a huge accomplishment. That is great that you have an asset like a house to sell if needed. We recommend talking about what the plan would be? Would you want to HAVE to sell the house if there was a death. If you are okay with that, what would it cost for expenses to sell? How long will bills need to be paid while the house is on the market? Will you need some extra cash for moving and paying closing cost? When putting these thoughts together, it might make sense to have something small just in case. 4. We haven't gotten that far.... Trust me.... We understand procrastination. And it happens to all of us! Life insurance isn't something everyone thinks about all the time. It's morbid to think about death. And we don't like to imagine that situation. But the reality is, we do all die. There isn't a forever potion. Yet... So it is a good time to start thinking about what next? And the plus side is, when you take out life insurance at a young age it's significantly less expensive, especially if you are in good health. It's something your family will be glad you did on the worst day of their lives. 5. I am young with no dependents yet... Hey we were all there once. This is a time when it might not be 100% needed yet. We would encourage you to look at your individual situation. Do you have plans for the future? Relationships? Kids? Business Owner? Because life insurance is so much cheaper when you are young and healthy, many times it makes sense to get started on that path now. When you don't "need" it, so you are prepared for when you do !

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