An umbrella policy is a liability-only policy that "floats" on top of a person's existing insurance policies. (Photo: Shutterstock)

We, humans, are risk-averse creatures.

For decades, psychologists have known that we recall negative events in greater detail than positive ones. (Quick test: Where were you when you heard about the 9-11 attacks? Now try this: What's your all-time favorite birthday present? The 9-11 question was easier, right?)

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