TXINS October E-News: Umbrella Insurance Provides Extra Protection, Ask the Agent, Agency Happenings, Texas Trivia Contest, and More!

Umbrella Insurance Provides Extra Protection

A rain umbrella protects you from getting wet, but doesn’t stop the raindrops from falling. Umbrella liability insurance is similar in that it cannot prevent accidents or mishaps, but can make those things less devastating financially.

Your primary insurance coverage, like your homeowners and auto policies, includes liability coverage up to a certain limit. Liability is your legal responsibility to pay for damage to a person or to a person’s property. An umbrella policy increases your liability coverage substantially—more types of claims are covered and at a higher limit.

Who Can Benefit from Umbrella Insurance?

  • Anyone with assets to protect
  • Everyone who drives a vehicle, including a car, motorcycle, boat or ATV
  • Everyone who owns or rents a home

In our litigious society, we must protect our assets from lawsuits. The primary reason for carrying umbrella insurance is that you never know what you may be responsible for. Accidents happen, and when they do, you may be held legally responsible for resulting bodily injury and property damage as well as legal fees, all of which can quickly escalate to hundreds of thousands of dollars.

If you cause an accident, the legal system makes a judgment that, between you and the injured person, you should be the one to shoulder the financial repercussions. The person who suffered damage is then entitled to collect what is owed by claiming insurance proceeds. If the money provided by the insurance company is inadequate, a claim may be made on your income, assets and savings.

Adequate liability insurance protects you from these financial consequences. Pain and suffering, lost wages, medical bills and property damage are some of the items you may be sued for that are covered by umbrella liability insurance.

What Does Umbrella Insurance Cover?
A personal umbrella insurance policy provides additional protection by increasing coverage for liability in two ways:

  • Increases the dollar limit of liability coverage for primary policies
    Example: Assume the coverage limit on the liability portion of your auto insurance totals $300,000. If you purchase an umbrella policy of $1 million, and you cause an accident that exceeds the $300,000 limit on your auto policy, your umbrella insurance can cover the remainder, up to $1 million dollars (a total of $1.3 million total liability coverage, in this case)
  • Covers claims excluded by primary policies
    Example: Typical liability policies may not cover damage claims resulting from false arrest, libel, slander, or defamation of character. If you are held liable for damages caused by these types of claims, the umbrella policy can help you cover costs.

How Much Umbrella Insurance Do You Need?
The right amount of liability insurance for any individual, family or business depends upon a number of factors. These include the risks you face and the assets you want to protect. For example, if you have a passion for speed boating, you have an increased risk over someone who only takes a dinghy out on the occasional fishing excursion. And if you have a high income, you are more likely to be sued in the event that you are at fault for injury to others.
Some professionals recommend that you add up all of your assets and then double that figure to determine the amount of liability coverage needed. Others look to the costs of medical payments and legal fees, which can vary considerably by region.
To figure out the right amount of liability insurance for you, talk to your TXINS agent.

Umbrella Liability Claim Examples:

  • Accident: Despite your careful driving and best intentions, you cause a serious accident. Your umbrella policy kicks in when the property damage exceeds the $300,000 liability coverage limit on your auto policy.
  • Dog Bites: Your dog escapes the yard and attacks a neighbor, resulting in extensive medical costs. The umbrella policy covers the excess costs of hospitalization, care and rehabilitation after your homeowners liability coverage is used up.
  • Trampoline: Your son’s school buddies are playing on the trampoline in your yard and one of the boys flies off, suffering a spinal cord injury. Your umbrella liability manages the excess costs after you exceed the limits on your homeowners or renters liability policy.

You hope these situations never occur, but statistically they sometimes do. You can limit the consequences with an umbrella insurance policy.

Do You Need More Liability Coverage?
You may want to give special consideration to an investment in umbrella insurance in the following circumstances:

  • You are at greater risk for liability if you own a pool or trampoline or ride a powerful motorcycle. Statistics indicate that these activities and others are more likely to lead to expensive liability claims.
  • If you have assets at risk, including retirement savings, business income, college funds, and other assets with total values that exceed the liability maximum on your home or auto policy.
  • One of the best reasons to own an umbrella policy is the attractive price for peace of mind. The premium you pay for the maximum claim payout tends to be low. In other words, relative to the protection afforded, umbrella insurance can be a great deal.


 We Are Here for You 

Texas Insurance & Financial Services, Inc. is your trusted advocate. As an independent insurance agency, TXINS represents a wide network of A-rated insurance companies, which allows us to find the best insurance policy to fit your needs and budget. We don’t believe in cookie cutter policies and will customize a plan specifically for you. Your overall satisfaction is our top priority. That’s a promise.

TXINS offers complimentary insurance reviews to ensure you are getting the right coverage for yourself, your family, or your business. To schedule your review, contact us today at 800-541-9849 or via email. Together, we will ensure you are protecting what matters most.

The employees of TXINS are active members in our communities. Here’s a quick list of what we’ve been up to as well as what we have planned for the month.

  • Nancy, Celeste, Lindsey, Kim, Hector, Kara, and Mr. Sorrel will be heading to the 2016 Hochheim Prairie Insurance Agent Conference in San Antonio on October 9-10. This conference allows our team to interact and share ideas with other agencies as well as learn newest company information from Hochheim for the upcoming year.
  • Amber McDonald and Allison Silvas will be attending the Central Fort Bend Chamber Business Expo on Oct. 18 from 10 a.m. to 2 p.m. The Expo will be held at the Rosenberg Civic Center and Amber and Allison will be in Booth #100. Make sure to stop by and say hello. For more info on the Expo, click here.
  • The Georgetown office has grown out of their current space and will be moving to a new location at the end of the month. The new office is located at 1911 N. Austin Ave, Ste. 401 (behind The Jeweler). Stay tuned for more info!
  • Happy October Birthday goes out to  Marilynn Sorrel and Nancy Novosad Pfeil. We wish them all the very best as they celebrate their special days!
  • Congratulations to the following TXINS staffers on their October work anniversaries: Sharon Martinez-18 years; Yvette Smith-2 years; and Kim Cole-1 year. We are proud to have you on the team!
  • Congratulations to our Personal Lines CSR Celeste Clark, who is getting married on October 15. We wish her a lifetime of love and happiness!
  • Congratulations to our September Texas Trivia Contest winners Connie Wood of College Station, Wanda Crow of Victoria, and Clint Wishert of Nada. Don’t forget to check out our new Texas Trivia contest question! Be one of the first people to email us the correct answer and win your very own Texas flag!

Kara Wood and Celeste Clark enjoyed a delicious Butterbeer at the “Wizarding World of Harry Potter” at Universal Studios in Orlando, FL. The ladies attended the 2016 AppliedNet conference in  September and visited the park courtesy of Applied Management Systems. 

Does Your Insurance Agent Work for You?

TrustedChoice.com helps you choose the right insurance company and insurance agent. We help you find an agent right in your neighborhood. You want an agent who is part of your community—who will be there for you personally if you need them, and isn’t just a voice in a call center somewhere.

 Meet the TXINS Team
Lindsey Malek

Lindsey Malek is affectionately described by her teammates as being hilarious and having the liveliest personality. She’s always making people laugh. Her team loves hearing her stories about her latest rescued animal or what’s going on with her husband’s crops…she truly is a country girl! Lindsey is a team player and jumps in to assist wherever needed. The customer service she provides is outstanding and she really enjoys getting to know her clients and doing what she can to answer their questions and help each one meet their goals. We are so fortunate to have Lindsey a part of the TXINS family!    

To learn more about Lindsey, click here.

I currently have a term life insurance policy but would like to look into how a whole life policy could better protect my family. Can you give me more information on what exactly a whole life policy is and how it could help me?  – Tracy J., Austin, TX

Dear Tracy:

Whole life insurance can help to keep you and your family financially secure. If want to protect your loved ones and build a savings plan for their future, then a whole life policy may be right for you. This type of policy has a number of benefits as a life insurance solution, and can be used as a savings and investment tool in addition to providing death benefits to your beneficiaries.
Whole life insurance is one of the types of permanent life insurance available. It covers you for your entire life. In addition to paying death benefits, it also has a cash value accumulation feature which grows over the life of the policy.
Whole life insurance might be right for someone who:

  • Wants both life insurance and a savings plan
  • Wants to use life insurance as a financial planning tool
  • Wants to protect family members from a loss of income as a result of the policyholder’s unexpected death
  • Wants to pay off a mortgage, outstanding debts, loans or future debts, such as children’s college tuition
  • Wants to pay for death and funeral costs
  • Wishes to create an estate or trust

 Features of Whole Life Insurance

  • Guaranteed interest rate: A guaranteed rate of return for your cash value accumulation that does not change.
  • Guaranteed insurance premium: Your premium amount, which you pay monthly or annually to keep the policy in force, is guaranteed to remain the same during the life of the policy.
  • Guaranteed death benefit: The face value death benefit amount you choose is guaranteed.
  • Cash value accumulation: The tax-deferred cash value which you build in the cash value accumulation portion of the policy is guaranteed.

 Whole Life Insurance Premium Options
Some life insurance companies offer options for payment of your whole life insurance premiums. These options include:

  • Level premium: A regular monthly or annual premium which you pay your entire life.
  • Limited premium: A premium you only pay for a specific period of time.
  • Single premium: A single premium is a one-time lump sum payment.

 Whole life insurance is an all-inclusive insurance and savings plan that can offer long-term financial protection for you and your family. It is important to weigh the pros and cons of this coverage against other insurance vehicles and choose the plan that best meets your needs.

Do you have a question for our agents? Email it to us! If we choose your question, we’ll send you a thank you gift! Be sure to include your mailing address and phone number in your email.

Learn Something New Every Day
– Rubbing a banana peel on mosquito bites can alleviate itching.

– You don’t sneeze when you are asleep because the nerves in the sneeze reflex are also resting.

– For every human on Earth there are 1.6 million ants.

– October 17 is National Pasta Day. Pasta is super easy to make and with more than 600 known pasta shapes it’s a crowd pleasure for almost all taste buds. Celebrate with one of these easy and delicious recipes.

Don’t Wait – Check the Date!

National Fire Prevention Week is October 9-15. Be sure to check your smoke alarms to make sure they haven’t expired. Smoke alarms should be replaced 10 years from the date of manufacture. Manufacture dates can be found on the back of the unit.

For more information on National Fire Prevention Week and tips on how to keep your home and your family safe from fire, visit the National Fire Protection Association’s website.

We LOVE Referrals!

Congrats to Jillene Overby of Tioga, TX, our September Referral Program drawing winner! Thanks for your referrals, Jillene!

If you love Texas Insurance & Financial Services, Inc., tell a relative, friend, or co-worker about us. When they call to receive a quote make sure they let us know that you referred them.

As a thank you, you’ll receive a surprise gift and will be entered into our monthly $50 gift card drawing and our annual Grand Prize drawing for a $1,500 gift card!!!

(Grand Prize drawing will be held on December 1, 2016.)

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