If You Are Rich, You Need Umbrella Insurance

umbrella

One of the most underrated ways that an individual can protect himself is by purchasing umbrella insurance. It is possibly the biggest no-brainer kind of insurance you can buy, simply because it allows you to avoid wipeout risk in exchange for a very modest sum.

For those of you unfamiliar, umbrella insurance is an insurance policy in excess of home insurance, auto insurance, boat insurance, etc., and it guards against freak accidents that would drive you into bankruptcy.

For instance, let’s say you’re on your honeymoon in Switzerland, and you crash your rental car into the CEO of Nestle, putting him on permanent disability. That would cost you millions of dollars. Most likely, that’s game over. You’re gonna lose your house, you’re gonna lose your assets, and you will be paying out a percentage of your assets to the Nestle man for the rest of your life. It’s not a … Read the rest of this article!