How Umbrella Insurance Works And Who Needs It ☂️
HTML-код
- Опубликовано: 11 июл 2024
- Anyone aspiring to build or maintain wealth must implement safeguards to protect their assets against potential lawsuits. Given our highly litigious society, it's imperative to have robust asset protection strategies to ensure you don't lose your hard-earned money.
Many affluent individuals consider obtaining an umbrella insurance policy at some point. However, a common misconception is that merely having such a policy guarantees comprehensive coverage.
There are many misunderstandings about umbrella insurance-what it is, how it functions, and who truly needs it. In this video, I clarify these points and help you determine whether you need a policy or if your existing coverage is adequate.
Additionally, I offer insights on working with your insurance agent to ensure you secure the best policy with sufficient coverage.
Video Contents:
00:00 - Intro
01:00 - What is Umbrella Insurance?
03:15 - Who Needs Umbrella Insurance?
10:00 - Tips for Securing the Right Policy
💡 I do not work with clients or offer any consulting services. If you want to learn more about the best tax and investment strategies, subscribe to my channel and check out these courses ▶️ sharonwinsmith.com/courses/
The information provided in this video is owned by Winsmith Tax LLC and is solely for informational and educational purposes. It is not intended as investment, legal, or financial advice. Always consult with a professional familiar with your unique situation, or conduct your own research before making any decisions. We might receive commissions for recommending certain products or services.
I would never notice you said those two words funny (????). Sounds quite normal to me.
Great content on your channel. Very valuable. Since we're on the topic of wealth preservation and protection. I think a video series on divorce would helpful to those that don't understand that divorce proceedings are a lawsuit and marriage is the ultimate busines contract. A contract that most get nto without a attorney, but need one or more to get out of. The ones that haven't been destroyed by it don't realize how family law operates in it's own realm with no oversight and court orders are only as good as the judge, with judicial immunity, tjat will or will not enforce it. A common misunderstanding is that prenuptial agreements provide protection. The road is littered with so many individuals who toiled to protect their generational wealth only to end up broke, broken, and indentured while attorneys and other parties extracted their wealth from them and their children. So many have ideas on what they think should happen, what's "just" and that they know how to protect their family only to learn it operates by a separate set of rules. Your take on how to prepare for what has a 50 percent chance of happening to married couples by the 15th year would be really helpful.
Thanks for doing what you do!
I’m an agent, and it’s always a pleasure to listen to explanations 👍
Thanks for watching!
Very well done I will share this with a number of people that need the umbrella😊
I neglected to mention that the cost of my umbrella policy I am able to deduct from my taxes before I pay taxes every year😊
Thank you! 😁
This answered my questions, thank you so much for the detailed information!
Thanks for watching!
What happens if you are in a car accident and your car insurance refuses to pay anything for whatever reason?...
The only part I don't understand is the correlation between your net worth and how much insurance you should carry. Isn't the idea to carry enough insurance so the plaintiff can't get to any of your money? Whether you're worth $500k or $2M, why not just carry a $2M umbrella, they're not very expensive. Thanks
I think on your facts, you would always carry at least a $2M umbrella. There are two issues that come up with deciding about how much coverage to carry - 1. you can be sued for future earnings sometimes too. So even if you have $2M today, the judgment could exceed that. Stated otherwise, the judgment could exceed your current net worth and you be required to pay that out of future earnings. 2. What to do when you have net worth of $5M+. Say someone has net worth of $20M, how much coverage do they need? That's a hotly debated issue. Cost and availability of coverage at higher amounts isn't the same as when you're just talking about a $2M policy.
I recently asked my broker about specific types of scenarios and if I would be covered (for business) and it felt like I was talking to a 7year old…he had very little concept about the simple scenarios I was explaining. Do you have any advice on how to search for brokers or is it possible to work directly with an insurance company?
I have never found an insurance broker who was able to even come close to understanding my business and the risks I face. I have tried working directly with the insurance company in the past but they won't answer any questions about the policy and usually just try to refer you back to a broker. I don't have a great solution on this topic - it is probably the biggest issue I face with my business. I've spent countless hours reading books, studying the insurance industry, and just tried to figure this out myself. I've been exploring doing a captive insurance company but haven't set this up for myself yet.
@@sharonwinsmith thanks for the response, thanks for bringing this back to my attention as it’s something I need to look into. Why is it that “broker” can be described as “unnecessary middle man”?!
Because they add costs to the system without adding any value