Personal liability insurance, also known as personal insurance, is another product we use to keep assets. Since we live in a litigation society, we believe that it is a good strategy to develop a policy that can withstand financial errors caused by litigation.
What is personal liability insurance?
Your homeowner and auto insurance policy adds liability protection to the contract. If you are negligent in the event of someone being injured, your liability protection will cover personal medical expenses, rehabilitation, lost wages, etc.
However, coverage is relatively low and can be quickly exhausted depending on the severity of the other party's injury.
Once the liability protection for your other policies is no longer sufficient, the protection of the Personal Liability Insurance policy will be triggered. It serves you and your assets Increase protection.
What about the important examples of this policy?
For example, Bill hurt Annie in a car accident. Due to the severity of Anne's injury, she is now disabled and unable to return to work. Her medical expenses are $50,000.
Good news and bad news. Good news: Bill's auto insurance policy has a liability insurance of $50,000. Bad news: Do you think Anne and her lawyers will only catch up to $50,000?
not necessarily. remember…
She can no longer work and live for her family.
She can no longer fund retirement.
Due to her disability, she will have to pay for medical expenses.
With economic difficulties, emotions are in trouble.
So if you consider her 20 years of salary loss, medical expenses, retirement and personal treatment, you will see the possibility of millions of dollars. If Bill does not have personal liability insurance, then his assets will be exposed.
what is that bare meaning? They can chase your house, car, boat, bank account, 401k, etc. Any asset owned on your behalf is at risk.
But you don't even have to "harm" the "body" that hurts the scene. If someone is injured in your home and you are liable, your assets will be at risk if you do not have sufficient insurance.
This article is not meant to scare you. It does not mean causing fear. We encourage you to take precautions. We want to inspire you to take action to protect your wealth. Just like wearing a seat belt on a car, the umbrella policy is an extra layer of protection.
My wife and I have a $5 million umbrella policy that is higher than the insurance coverage provided by our family and car policies. We only pay a $531 policy per year. As you can see, the premium is relatively low.
Therefore, please consider the benefits of these policies. Use the umbrella policy to cover your assets. Remember… sometimes it will fall when it rains.