Even if you don’t have assets, you can get turbo fucked by insurance limits. Had a guy that used to work for me that was basically homeless because they garnished his checks after an accident where he fell asleep at the wheel.
Would also recommend one if you’re on the board of a nonprofit like a youth sports organization or coach for that matter.
I need to. Had an incident where our dog (lightly) bit someone at a park but it could have been ugly. Had completely forgotten I wanted to look into it until seeing this, so “Thanks TMB!”
Echoing the same as others. If you have assets, you should have one. And they are pretty cheap. Paying like 280 a year for a 5 million dollar policy.
who do you have? Just got quoted $277 by geico for a $1M policy plus I’ll have to upgrade my renters from $100,000 to $300,000.
I appreciate the reminder that I need to check on this. When I got our house + home policy 10 years ago, not enough assets etc to do umbrella (we are with Cincinnati). I sort of wonder now, though.
Is an inherited IRA shielded from liability, or should it be included in the assets added together to size an umbrella policy? My agent says they cannot offer legal advice regarding IRA exposure. Thanks.
Just realized after my grandma’s funeral I’m worth a ton of money dead. Almost a million with my wife’s policy. So if I get got you all know where to look if it seems fishy
Bruh, your wife tried to kill you multiple times when you were financially worthless. Pretty sure any untimely death will result in her getting looked at first.
I mean if you have a lot of assets you do? If you have six figures in a brokerage account and less than $1m in insurance and you kill someone on the road, someone’s going to get that $100k from you. Or you can pay like the equivalent of two supersized McNuggets meals a month and not have to worry about that
I remember back in the good old days when people wanted everyone to know they were rich they would just post a poll about annual incomes and make it where everyone could see how you voted.
Yes, it's like $14/mo. and gives me peace of mind. I think anyone with teenage kids should definitely have one.
*Edit - Some states protect IRAs from creditors. If you go into bankruptcy, federal law will protect up to a certain amount of your IRA balance. Duck Smoker
This is what is getting me. We have a 3 yr old son and I know he’s good on my wife’s company plan but I don’t have shit other than that
The insurance is technically to protect the bank from losing money. You get insurance because you don't have enough collateral to fully secure the loan, and the bank wouldn't underwrite it absent insurance.
So if I took out a loan for my kid I’d be better off than getting him insurance? Asking for real as I have no idea. Never had a loan in my life other than student loans.
Oh I don't know about that. I was referring to lender-required policies like PMI. Your example sounds like an optional policy that would payout towards a loan upon the occurrence of certain covered events (e.g., death, sickness, loss of job). I'm not an expert in this stuff at all. Depending on your son's situation, I suspect a lender wouldn't accept the policy as a substitute for your guaranty. I'd get with an insurance broker on this.
Never mind the underlying principle is you have to have an insurable risk. Shouldn't the bank be on the hook for the insurance?
You have to pay twice what your home is worth to me? Why? I'm taking on risk. Also you have to insure my risk. This seems normal
I think the fact that I had to look up what an umbrella insurance policy is answers the question of whether I have it
The insurance reduces risk to the lender and the borrower. It doesn't get rid of risk. And risk reduction does nothing to resolve that there is time value of money and inflation.
Well I hope they don't decide at some point there's even more risk they weren't previously aware of and I have to buy something else to triple dog insure their risk