Remember Your Umbrella
Having an umbrella insurance policy could be like a four-leaf clover to those with assets tied to retirement plans and IRAs. This type of insurance might help you if a creditor wants to seize your retirement account.
Also, personal umbrella insurance can be added on top of your pre-existing homeowners insurance and auto insurance covering the excess cost in case of an unfortunate event.
Another great thing about having an umbrella insurance policy during a lawsuit is that the insurance company is required to give you legal defense on top of the coverage you already receive. It is crucial to remember that umbrella policies do not cover business activities, intentional acts, or punitive damages.
So, in the case of a lawsuit, if you need to pay out a claim, having an umbrella insurance will definitely help you while your standard liability insurance will run out.
Umbrella insurance policies and professional malpractice insurance are two smart ways to protect your IRAs. If you find yourself in this situation, you can still receive the benefits of IRAs, which are more effective due to the lower associated fees and investment flexibility than other employer-sponsored plans and 401(k)s.