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 insin 
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Joined: Feb 2006  USA
 Posts: 411 Feedback: 100% (13) |
Posted: 7/11/2012 2:37:59 PM
THE IMAGE ABOVE IS A PAID ADVERTISEMENT Also, are there any other tips that a young couple (32 and 33 years old) should consider when buying life insurance? We are looking at 30 year term for what ever our needs are dollor amount wise. We have no house yet, but we do have a 2 yo child. We are both medical professionals and both work full time. It seems to me that term insurance is the way to go, but perhaps I don't know something. Thanks insin |
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P08
WAIT FOR IT!
Team Member
Joined: Apr 2001  AND
Posts: 13590 Feedback: 100% (14) Link To This Post |
Posted: 7/11/2012 2:48:10 PM
General umbrella insurance covers you beyond what your other insurance limits are. I carry 3 mil on mine as I lease vehicles to my business. If one of my employees get in a wreck and damage to property or people exceeds the auto policy then the umbrella kicks in and covers the rest. This way they don't get to try for my house! The other I'll leave to someone ho knows more.
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eastonj
Heh, heh. You said member
Team Member
Joined: Mar 2006 UT, USA
Posts: 1225 Feedback: 0% (0) Link To This Post |
Posted: 7/12/2012 1:14:57 AM
Umbrella coverage is different than life insurance.
If you're young and healthy, definitely get term life insurance. Don't dick around with whole life/universal life/variable life, or any other policy that combines insurance and investing. Straight term life is very cheap and does exactly what life insurance is supposed to do. If you die during the policy coverage period, it pays out to your beneficiary. The end.
With an umbrella, you can purchase additional coverage that works in conjunction with your homeowners and/or car insurance. For example, you might have $15K of personal injury coverage on your car policy. It's really easy to blow through 15 grand if a person gets hospitalized, surgery, CT scans, etc. Anything above the $15K is now your responsibility, and that's where attorneys start working you over for an expensive case, plus pain and suffering claims.
I have all my homeowners and car insurance through State Farm, but most of the major insurers offer it. If there is a claim and I'm liable, my homeowners or car insurance pays up to the policy maximum. For anything above those limits, and up to my umbrella coverage limit, the umbrella policy pays. It works as an "umbrella" to provide overall coverage for the gaps that might exist in your individual coverages.
It's really cheap too. I think my State Farm umbrella is something like $350/year per million coverage. Bear in mind that this is in addition to my homeowners and car insurance.
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Posted: 7/12/2012 11:14:23 AM
Originally Posted By P08:
General umbrella insurance covers you beyond what your other insurance limits are. I carry 3 mil on mine as I lease vehicles to my business. If one of my employees get in a wreck and damage to property or people exceeds the auto policy then the umbrella kicks in and covers the rest. This way they don't get to try for my house! The other I'll leave to someone ho knows more. This. I have 1 mil in umbrella because I four houses that could be free game if I were to get sued. Umbrella insurance is a no brainer in my opinion if you have decent assets. |
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Posted: 7/12/2012 1:54:49 PM
I have researched this extensively not too long ago.
The genera consensus on savvy investor/ financial forums was for life insurance to go with Term. The idea is that it is cheap and does exactly what it is supposed to do. The other policies build cash values, but if you stop and think about it, if you are saving for retirement the whole time then by the end of the "term" period, do you really need that cash value? For the price difference between the policies (term is much cheaper) you could put the difference in to an index fund and let it ride and out perform the cash value of any of these insurance policies. As for Umbrella - this is all about your liabilities. The insurer will insist on certain minimums being set on your auto and home policies (usually either at least $100,00 or 300,000), after that is used up the Umbrella policy kicks in. They usually start at $1M in coverage and go up from there. It is typical that this type of policy will cost under $1/ day. |
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BushBoar
Hated Divorce Lawyer
Team Member
Joined: Mar 2004 NY, USA
Posts: 20980 Feedback: 100% (24) Link To This Post |
Posted: 7/12/2012 1:56:31 PM
Umbrella insurance is generally cheap and is a very good idea.
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Posted: 7/12/2012 3:12:49 PM
Originally Posted By BushBoar:
Umbrella insurance is generally cheap and is a very good idea. This. A lot recommend to double the coverage at every "major" life change; new house, new baby, new teenage driver, etc. It is *very* cheap for the protection it provides. |
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Meta4
L33t Hax0r
Life Member
Joined: Sep 2004 MI, USA
Posts: 4178 Feedback: 0% (0) Link To This Post |
Posted: 7/26/2012 4:32:49 PM
It protects you from zombies.
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