Let’s throw out an all too common scenario for you to consider throughout your day. Your son or daughter turns 16 and wants to get a driver’s license. You being the good parent want to say yes (and are excited about letting them drive themselves to soccer practice) but you’re nervous about them getting into an accident. You’ve done your due diligence and realize that the statistics are not in your child’s favor and you don’t want to see them get hurt or hurt anyone else. Begrudgingly, you say yes and start teaching them to drive, so that you’re absolutely sure they’re going to have the best possible chance.
Fast-forward about 6 months and the child has his or her license and is feeling pretty confident about their new skills. Maybe they start showing off, or perhaps the very important text “hi” distracts them and they just can’t resist answering. God forbid they do something completely irresponsible like having a drink and getting behind the wheel. It could also be that it’s not negligence but mere inexperience that causes the accident. Either way, your child is injured and seriously injures others in the car as well as the people in the car he or she hit.
Now once you get over the terror of knowing that your child could’ve been killed, you start to realize the implications that this accident will have on you and your family. This is a very serious and probably devastating financial situation. There will certainly be medical bills, lawsuits and legal fees. You also realize that since your child has no immediate assets, yours are in play and you have no real protection other than standard car and family medical insurance. This is when the other kind of fear creeps in. The kind of fear that makes you blame yourself for not being better protected and putting at risk everything your family has.
I’m sorry to paint such a grim picture, but I really want to get across the point that the financial disaster portion of this story could’ve been easily avoided. There is an insurance policy called an umbrella policy that is very inexpensive that adds a blanket of protection covering any situation you can dream up. The key to being completely covered is knowing how much to get. Umbrella policies are sold in increments of 1 million dollars and a good insurance broker can guide you to the proper amount to buy as well as the best company to buy from.
Please, do yourself a favor and find a really great broker that will sit down with you and explain all of your options. You don’t need to live in fear and you don’t need to have your life ruined by one mistake.
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Leading the industry through his innovative approach, Dino Katsiametis has over 17 years of extensive experience within mortgage, banking and real estate industries. His passion for the collective financial and investment services sector combined with his distinct insight, has catapulted Money Matters with Dino onto the forefront of financial news.
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