Kathryn Smith

Did you know that life insurance can be used as a tool in estate planning?  By purchasing a permanent life insurance policy, you can provide immediate, tax-free money to your beneficiaries – and ensure that they have the funds necessary to cover your estate taxes.

Here are some reasons life insurance should be a part of your estate planning:

Settling the Estate:  Funds from a life insurance policy can provide your family with the money necessary to settle an estate.  Otherwise your family may not be able to find the funds necessary to pay the costs that go along with the estate-settling process.

Leaving a Legacy:  Life insurance allows you to leave your family a legacy that is paid quickly and free of tax.  This helps prevent money from being held up in probate and the costs that go along with it.

Inheritance Taxes:  Life insurance proceeds can also help your family pay inheritance taxes that the state may impose on property your family inherits.

Reducing the Size of Your Estate:  Using a gifted whole life insurance policy that is paid in fully with a single premium will immediately reduce the size of your estate and avoid taxes on your premium dollars paid.

With life insurance, you can be certain that your family will be taken care of after you are gone.  Contact our office to discuss setting up a Single Pay  Whole Life insurance policy as part of your estate plan.

NOTE:  Consult your legal or tax adviser for specific tax advice.

SOURCE:  Auto-Owners Insurance Update, Volume 8, Issue 3, July – September 2014

If you’re a boater; there’s nothing better than a day on the water.  We know your boat is a significant investment of time and money.  Routine maintenance can extend the life of your boat and reduce the need for costly repairs.

Sometimes it’s hard to remember what to look for.  Here are some tips to help you:

• Wash your boat regularly.  Periodically wax your boat and apply anti-fouling paint to reduce environmental wear and tear.
• Make sure mooring lines are securely fastened in place, neatly coiled with no signs of breakage or wear to prevent damage that occurs while boats are docked .
• Be sure your battery is properly charged and clean, and that fluid levels are suitable.  Routinely inspect the hull for blistering, cracking, or distortions.
• Check through-hu8ll fittings for brittleness or cracking and replace them as necessary.
• Check fuel systems for leaks as well as hoses and belts for brittleness, cracks, holes, connections and fit.
• Check your electrical systems and wiring; apply water-repellant, non-conductive grease or corrosion inhibitor.
• Flush engines after each outing and check your fuel tanks, clamps, and fuel lines for rust, damage or corrosion.
• Check the bilge pump frequently to be sure it is functioning properly.
• Inspect the condition of life jackets and ensure fire extinguishers are properly charged.
• Take advantage of safety inspections offered by the U.S. Coast Guard, the Coast Guard Auxiliary or U.S. Power Squadrons in your area.

Remember to review your insurance coverage for boat and watercraft liability with our office.

SOURCE:  Auto-Owners Insurance Update, Volume 8, Issue 3, July-September 2014

When you’re no longer able to provide for your family, they will still have to find a way to cover their finances.  These can include bills, final expenses, college funds and more.

Life insurance is a reliable way to help offset these costs and make living more comfortable when a family member, particularly one with the primary income, passes away.

Buying a life insurance policy isn’t for your own benefit; it’s for your family’s.  You purchase a policy to secure their financial stability.

The best way to determine how much and what kind of coverage you should buy is to consider your family’s  needs in terms of money.  Included in these calculations should be expenses at time of death, debts, medical bills, daily expenses and future expenses.

Since the point of buying a policy is to benefit your loved ones, you’ll also need to consider whom you’re going to name your beneficiary.  When naming a beneficiary, specific wording is key.  For instance, if you designate your children by name, you may unintentionally exclude those born later.  Also, a contingent (secondary) beneficiary should be named in case you outlive your primary beneficiary.

Additionally, electing a beneficiary rather than paying the proceeds to your estate allows your family immediate access to the funds.  Paying it to your estate requires that the benefit go through probate court along with your other assets at the time of death.

Life insurance is a great way to secure your family’s  future and express your love for them for year to come.  Talk to us today about how we can meet your life insurance needs!

SOURCE:  Auto-Owners Insurance, Insurance Update, Volume 7, Issue 2, April-June 2013

Many of us are always working on improvements to our homes.  You should consider contacting your agency when you’ve completed a project.  These improvements most often add value, and the amount of insurance you carry on your home may need to be re-evaluated.

For instance, if you have recently undergone a remodeling project, whether major or minor, this may have an impact on the amount of insurance you want to carry on your home.  A bathroom or kitchen update, deck addition or finishing a basement all add up.

It is important that these updates and upgrades are taken into consideration regarding the total amount of insurance you carry on the dwelling portion of your homeowners insurance (the Coverage A amount).  That ensures these will be accounted for in the event of a loss.  Your home will remain insured to its proper value and we will have had time to discuss any additional coverage needs you might have as a result.

Another update you should contact us for is when you have replaced your roof.  this common update affects the rating of your home insurance policy and may make your policy eligible for a discount.

These are only a few examples, so take the opportunity to consider any updates you have made to your home and please contact us today to discuss them.  We are happy to help you will all of your insurance needs and make any necessary policy updates for you.

SOURCE:  Auto-Owners Insurance, Insurance Update, Volume 7, Issue 2, April – June 2013

Umbrella Insurance?  What is it?

Umbrella insurance is extra liability insurance.  It is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future.  It does this in two ways:

1. Provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies.  This protection is designed to kick in when the liability on these other policies has been exhausted.
2. Provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander, and liability coverage on rental units you own.

What does umbrella insurance cover?

Still a bit hazy on what an umbrella policy covers?  Well, let’s dig into the details a bit.  Umbrella insurance provides coverage for:

• Injuries
• Damage to property
• Certain lawsuits
• Personal liability situations listed below

You’re thinking, “I have auto and homeowners insurance that covers some of these situations.” True!  But, umbrella insurance insures you above and beyond the limits of those policies and covers some situations that aren’t covered by other types of policies.  And rates are less than you think!

Here are examples of the types of coverages provided by an umbrella policy and how they protect you:

Bodily Injury Liability – covers the cost of damages to another person’s body.  Examples include the cost of medical bills and/or liability claims as a result of:

• Injuries to other parties  due to a serious auto accident where you are at fault
• Harm caused to others as a result of your dog (yeah, you probably should have taken him to obedience school)
• Injuries sustained by a guest in your home due to a fall
• Injuries sustained by a neighbor’s child who falls while playing in your yard

Property Damage Liability – covers the cost of damage or loss to another person’s  tangible property.

Examples include the cost associated with:

• Damage to vehicles and other property as a result of an auto accident where you are at fault
• Damage claims incurred when your pet rips a friend’s priceless oriental rug to shreds
• Accidental damage to school property caused by your child (hey, you can’t disown them)

Owners of Rental Units – helps protect against liability that you may face as a landlord.  Examples include the cost of liability claims as a result of:

• Someone tripping over a crack in the sidewalk of your rental property and suing you for damages
• Your tenant’s dog biting someone and you being held responsible for the injuries

Coverage is also provided should you be sued for:

• Slander – injurious spoken statement
• Libel – injurious written statement
• False arrest, detention, or imprisonment
• Malicious prosecution
• Shock/mental anguish
• Other personal liability situations

Need an Example?

So, let’s look at an example to help you better understand how an umbrella policy would work to protect you.  Let’s say you cause an auto accident and the cost of the injuries you cause to others is $500,000.  Let’s further say that the Bodily Injury limit on your auto insurance is $300,000.  Your auto policy will cover $300,000 of the injuries.  But who will cover the remaining $200,000?  Your umbrella policy will.  It will cover the amount above the limit set in your auto policy, up to the limit you choose for your umbrella policy.  Now isn’t that peace of mind?

Please note:  The above is meant as general information and as a general policy descriptions to help you understand the different types of coverages.  These descriptions do not refer to any specific contract of insurance and they do not modify any definitions expressly stated in any contracts of insurance.  We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.

SOURCE:  https://www.geico.com/information/aboutinsurance/umbrella/

4 COMMON SCENARIOS YOU MAY FACE

Insurance exists so you can tackle the unexpected without shelling out all of your hard-earned savings (and then some).  Umbrella insurance goes a step beyond that – it extends the limits of your primary policies, rendering your coverage that much more valuable.

Though your home and auto policies offer extensive protection, there’s always the possibility that an unfortunate incident could wind up costing you hundreds of thousands or even millions of dollars in legal fees or property damage.  And then what do you do?  That’s where umbrella insurance come to your aid.

An umbrella insurance policy kicks in after you have a costly accident once you’ve exceeded the limits of your home and auto policies.  Here are 4 scenarios in which it could come to your aid.

1.  If you get into an accident involving multiple cars

You’re a responsible driver, so you have car insurance.  Seems simple enough, right?  But if you’re ever found at-fault for a major accident involving several cars carrying multiple passengers, your auto coverage may not cover enough to keep you from digging deep into your savings (or going deep into debt).  Even if everyone involved walks away unscathed, the damage to the cars alone could cost far more than traditional auto insurance covers.

2.  If a visitor is injured

Got a swimming pool, trampoline, or playground equipment in the back yard of your home?  If you child has a friend over after school and they suffer a serious injury while playing, you could be responsible for some hefty medical bills and an expensive lawsuit.  While a homeowners insurance policy offers liability protection, you’re stuck paying for anything over your coverage limit.  That’s where umbrella insurance comes in handy.

3.  If you’re a landlord

Whenever you rent to a tenant, you’re opening yourself up to greater risk.  If someone renting a place from you is injured on your rental property, for instance, they could possibly bring a lawsuit against you.  And though you probably have landlord insurance (or at least you should!), it’s smart to secure your savings with some additional coverage.  Aside from requesting or requiring that tenants purchase renters insurance to protect their belongings and liability, your best bet for protecting your own liability is umbrella insurance.  It’s great just-in-case coverage – especially if you own more than one property.

4.  If your dog bites someone

Let’s say you’re taking your beloved pup for a stroll around the block.  If your dog nips and injures a stranger, it could potentially cost you thousands of dollars in medical treatment and maybe even bring about a nasty lawsuit.  Dog-bite liability claims can be incredibly costly, depending on the damage done by your 4-legged friend.  And if you max out any protection you may have on your homeowners policy, that gap in coverage could easily be thousands more than you’ve got in the bank.  An umbrella policy could help save you and your pooch from financial ruin.

Added protection with umbrella insurance

Umbrella insurance is a valuable resource for anyone who could be liable for an accident worth more than they’ve got in the bank.  Plus, protection even extends to other people in your household.  Contact us for a quote today!

SOURCE:  http://www.esurance.com/info/umbrella/do-i-really-need-umbrella-insurance