By Anna Helhoski, December 27, 2014
A retirement nest egg may make you feel like you’ve locked down your financial future, but don’t get too comfortable. Getting hit with a liability lawsuit in your retirement years could turn your life upside down.
While your insurance may cover some damages or legal fees, an umbrella insurance plan goes further. It protects you and your assets if you are held liable for a claim exceeding the coverage of your other insurance policies. Without such coverage, your assets could be in trouble.
Say, for example, you’re five years into retirement and you get into an auto accident. Your car is just a little banged up, but the other driver and his passengers are seriously injured. You’re hit with a claim of $1.5 million, but your liability auto insurance only covers $100,000.