I Already Have Homeowners Insurance! Why Do I need Umbrella Insurance?

If you are a family with established assets you want to protect you could stand to lose a significant amount of money in the event of a lawsuit due to injury or liability. If you are sued, you could forfeit any assets you have built, including savings and investments. While the wealthy are at risk for liability, and libel claims, so are people who have no significant assets. While you might just be starting out in your career and have no tangible assets now, you have future assets that can be targeted, and a court can award benefits to a third party if you are held liable for injuries or damages. Having basic Peoria, AZ homeowners insurance is no guarantee that you and your future assets are safe in the event of an injury or claim. 

What Does Umbrella Insurance Do? 

Umbrella insurance provides added coverage above and beyond your homeowners insurance and protects your assets or future financial gains. It kicks in when a claim is more than what your homeowners, car insurance, or personal insurance policy limits are exhausted.  

What Does Umbrella Insurance Cover? 

Umbrella liability insurance provides a variety of protection from issues that arrive from personal and professional claims. For example, umbrella insurance from Schaller & Thomas Family Insurance protects you against claims of liability and slander whether related to home or business, in addition to: 

  • Excessive medical bills 
  • Lost wages due to negligence 
  • Rehabilitative therapy 
  • Litigation costs from injury or property damage 
  • Legal defense costs

I Have No Assets! Why Do I Need Umbrella Insurance?

You may have no assets now, but a court can obligate you to pay off damages awarded against your future earnings. For example, if you are a student studying for a higher degree, or are expected to be eventually promoted to a higher-paying position, when facing a lawsuit, your future projected earnings can be targeted. 

At what age should I take life insurance?

There is a lot of debate as to whether it is right for parents to purchase life insurance for their newborns. Life insurance is typically age-banded. Therefore, you can choose to purchase life insurance in Peoria, AZ right after birth. Here is a quick look at some of the available life insurance options at Schaller & Thomas Family Insurance and the considerations you should make.

Whole life insurance

It is possible to make a prepaid lump sum payment for a minor in a whole life insurance policy. When the child turns 18, he or she can decide to continue funding the policy as the insured or cash it out if the policy holds equity.

It is important to remember that the cash value of your personal life insurance grows tax-deferred. Hence, contributing to a whole life insurance plan over a long-term time horizon will accumulate considerable value, especially if it was purchased at an early age. This is possible because the policy’s cost is fixed for its entire term. Your child can use the cash values accumulated from the whole life insurance to buy his or her first home or supplement retirement home purchase if held for long enough. The primary function of personal life insurance is based on income and debt categories.

Life Insurance and Debt

When joining the workforce, fresh from college, a college graduate can also obtain credit to fund housing costs. Since card balances are supposed to be paid upon the death of the cardholder, acquiring unsecured debts can place a huge burden to the debtor’s estate. Ideally, the graduate buys a life insurance policy to help him or her cover the assumed debt. But, most individuals at this age will prefer paying their current bills rather than acquiring new or additional one.

While the optimal age to consider buying a personal life insurance is under 35, a majority of millennials are not likely to purchase the policy. Take the initiative to protect your future and that of your loved ones by investing in a life insurance from Schaller & Thomas Family Insurance. For more information on life insurance in Peoria, AZ, contact our knowledgeable life insurance agents today.