Written By David Watson
Last updated 10 months ago
Built into the Risk Profile and AgencyProposals is an Estimated Liability Risk to help your clients decide how much Umbrella Insurance they should carry.
Each individual and each state is different but this was the broadest way of determining this that we could find.
Here is the calculation:
Estimated Retirement Age (65) minus the Primary Applicant's current Age (ex: 25) = 40 years until retirement
Gross Annual Income ($175,000) multiplied by Years Until Retirement (40 years) = $7,000,000 multiplied again by 25% = $1,750,000 Estimated Wages Garnished
Estimated Wages Garnished ($1,750,000) plus Estimated Net Worth (ex: $500,000) = $2,250,000 Estimated Liability Risk