Who Needs Life Insurance?

Most people think that only people with children need life insurance but that just isn’t the case. It is important that anyone who depends on you has the financial means to carry on without you. What is known as a death benefit can cover your funeral costs, living expenses and even college funding. No one wants to think about what happens to their family after they die, but it is important to think about protecting their futures even if you are not around. This means setting down some time when you can imagine a worst case scenario. Consider how your family will pay for medical bills, taxes, debts, lawyer fees and any other expense you can imagine. It doesn’t matter if you are old or young, single or married, have children or do not, life insurance may figure into your plans no matter where you are in your life. Anyone can be left with end of life costs that someone will be responsible for. As a breadwinner for your family (whether that is your parents, kids, spouse, or any one that depends on you) you need to consider life insurance. What would happen to your family if they could no longer pay for financial obligations? Even if your spouse is working, there might not be enough money to pay off car loans, credit card debt or a mortgage. Children compound the reasons to purchase health insurance because it is expensive to raise a child. If you are a stay at home parent, it is still integral to have a life insurance policy even if your financial contribution is not in the form of a check every two weeks. Costs that would exist without your contribution would be childcare, transportation, cooking, cleaning all of which are severely underestimated. If you were unable to assist your family with these duties, would they be able to pay for them? Besides taking care of your family, life insurance can also protect your business. A life insurance policy can be structured to fund a “buy-sell” agreement, which provides an exit strategy for your family’s interest in your company. Your family will be able to sell your share of any business for the proceeds of the life insurance bought for you by your business. If you are considering purchasing a life insurance policy or need someone to talk to about what payouts you will need to protect the people you love, contact a dedicated insurance specialist at Wise Insurance Agency in San Rafael.

Parents of Youthful drivers.

So I get this question often. “Mike, we are thinking of giving our son/daughter the car and let them get their own insurance, what you think”

Well since I am not speaking direct to anyone I will tell you what I really think. It is a cop out; it is socially irresponsible and the lawyer who suggested that there is no chance of liability coming back to you could be very wrong.

I would be glad to elaborate on this subject but I think I can sum it up by asking this: How much liability insurance would you like the youthful driver that injures you to have? 15,000 or 500,000?

Non Profit Volunteering

Unfortunately the number of lawsuits against non-profit workers, board members and volunteers are on the increase. Before you volunteer or join a non-profit board please confirm liability insurance protection has been purchased and directors and officers coverage is in place.

Diminished Value:

Please see the list of items a rental car company can charge you for damage to the rental car. Some of these expenses may not be covered by your insurance. This is why I always take the rental car companies insurance.

Damages to the car: (covered by your insurance)
Appraisal fee: (covered by your insurance)
Towing and Storage: (limited coverage)
Administration Fee: (undefined)
Loss of Use: (if you have it)
Diminished Value: (undefined and can be substantial)

hiring the right contractor

As of October 1, 2001 all California Contractors are legally required to disclose to homeowners, in writing, whether or not they carry General Liability Insurance. If the contractor does carry General Liability Coverage he is then required to provide the name and phone number of his insurance company to the homeowner. Any time you, the contractor, do a job for someone there is a chance that you could be sued, whether you are legally liable or not. A General Liability Policy typically obligates the insurance company to defend the insured against all allegations that, if true, would be covered by the policy. The policy also obligates the insurance company to pay damages, up to the policy limit, for which the insured is legally liable

Seasons Greetings-Be Careful

I would like to offer and our clients and blog readers the best this holiday season. The past year has been difficult for many in our insurance community and we all hope the recovery of our economy happens sooner than later for all our sake.

A couple things to be aware of always, but especially this time of year are car breakins, credit theft and holiday lights or candles.

A few year ago someone took a store credit card out in a our names and did their Christmas shopping on us. We got a bill $11,000.00 from a Sears Credit Card. We never had a Sears credit card. The charges were removed but it was a real pain.

We now have identity shield coverage on our homeowners policy.

Valuables left in cars is just asking for trouble. You would not believe the number of calls we get year round, but especially around the holidays about cars getting broken into. Goods bought are one thing but when you wallet or purse is stolen it is another. I never leave my wallet in the car. They can have my cell phone, camera and that wad of napkins I keep in the door pocket, but a thief is not getting my drivers license and credit cards.

Christmas tree lights and holiday candles: Just use common sense. Don't overload electrical outlets and be careful where you put candles.

Enjoy the Holidays!

Water Water Water

Did you know that water is the number one loss paid on a home policy in terms of frequency and dollars? The amazing thing about this is water losses have been restricted to sudden and accidental loss only. As and example, the pipe that suddenly breaks under the sink or the ice maker hose that bursts.

Water that backs up on a roof deck, water that hits the ground first and runs into the home, surface water (floods), that drip that has caused dry rot, the floor under the toilet that has been deteriorating for years and water that has been lapping over the tub under the tile are excluded from your home policy (see your policy for full details).

I will be happy to review the water and other exclusions in your home owners policy.