Umbrella Insurance – Lottery Winners’ Liability – Best Defense Against Frivolous Lawsuits is an Umbrella Insurance Policy


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  One of the most important types of insurance that a person should have is income protection. Any person whose standard of living depends on them earning an income should protect this most important asset – their ability to produce an income.

When purchasing an income protection policy there are a number of key points that a purchaser should keep in mind:
– Is the contract a cancellable or a non-cancellable contract?
– Guaranteed or indemnity contract?
– What is the maximum % of income that a person can insure?
– What is a waiting period and how does it work?
– What is the benefit period and how does it operate?
– Indexation – Yes or No!
– Are stepped premiums more suitable than level premiums?
– Will I be covered if I am retrenched or become unemployed?

Non cancellable or cancellable contracts. One of the key features when purchasing an income protection policy is to ensure that the policy is a non cancellable contract -i.e. once accepted by the insurer the policy is automatically renewable irrespective of your claims history. With a cancellable policy however the insurer reserves the right to cancel the contract prior to renewal. This may occur in the event of an individual’s claim history or the potential claims from a group or particular occupation that the particular insurer now deems to be an unacceptable risk.

Guaranteed or Indemnity contract. With a guaranteed contract the sum insured (monthly benefit) is underwritten up front based on supporting financial evidence – e.g. payslips, and other forms such as your tax return. Once accepted by the insurer the monthly benefit is guaranteed to be paid at claim time. With an indemnity contract however the benefit paid is based on the individuals earnings at claim time – this can be a problem if that person has suffered an illness but continued to work albeit in a reduced capacity hence lower earnings.

Consider this, someone slips on the snow on the front property of your new house. Or someone falls off of your boat. Or you hit a bicyclist while driving your car. Or somebody that knows you just won the lottery launches a frivolous lawsuit. First of all, you need to have an auto, home, and boat insurance policy to cover the liability in these types of situations.

Before you opt for an insurance cover, find out what are the limits of the policy. Every policy will have a certain limitation up to which they pay you. If you are aware of up to what extent your loan will be covered in times of redundancy, you will be able to make a right decision.

An umbrella insurance policy is designed to give you liability protection above what your usual home, auto, and boat insurance policies cover you. The usual coverage is between $1 million and $5 million above your usual liability coverage, but you could even go as high as $10 million or more with an insurance company that specializes in high net-worth people. As a lottery winner, this is probably the best protection you could have for your assets You can be published without charge. You can to republish this article in your website or blog. Please provide links Active. , credit, credit card, credit union, credit check, federal credit union, tax credit, credit reporting, free credit, credit loans, credit scoring, credit score, free credit report, bad credit loans, loans for bad credit,

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