When my firm begins working with business owners, we often have to correct, fix, improve, or shore up their life insurance policies. Many times, the client won’t have the right insurances, or they’re paying too much for coverage. And sometimes, the client won’t even have a life insurance policy. So right off the bat, when my personal planning process begins, the team helps place the clients into the correct life insurance policies. I want you to have a baseline understanding of how we make life insurance financially simple, so let’s cover the basics of Life Insurance for business owners.

Today, I want to talk about one of the most significant holes I see in the personal insurance side of risk management. Often, business owners will have this coverage for their business but not realize they need it for their own lives, too. It’s so important that I recommend (in writing) that all of my clients purchase this type of policy. What am I talking about? I’m talking about an umbrella policy. Specifically, I want to answer: What is an umbrella insurance policy, and why do you need one?

After helping hundreds of business owners with their personal and business finances over the years, I’ve learned a few things. One of the most interesting things I’ve learned is that people rarely review their homeowner’s insurance policy once they purchase it. However, property values tend to rise. The coverage you had on your house ten years ago is probably not the amount of coverage you need on it today. Therefore, you should probably review your homeowner’s insurance coverage yearly to make sure you are adequately covered. Here’s what you need to know.