Do You Have Umbrella Insurance?

Umbrella Insurance, the Most Important and Least Expensive Liability Insurance

The chances are you have the average vehicle policy coverage limits of liability - $100,000/$300,000.

Those figures represent the limits of your insurance protection for damages as a result of injuries you cause to others in an accident. However, if the damages exceed $100,000 per person or $300,000 per accident for all persons injured in the accident, you must pay the excess.

Umbrella Insurance Coverage

A standard umbrella policy covers all vehicles on your policy and your home for injuries caused to guests or visitors on your property. An umbrella policy also may cover libel or slander claims. For instance, posting a bad review or social media comment. You may also have coverage for malicious prosecution claims and overseas travels. Importantly, the policy limits begin at $1,000,000,00 and average only $230 per year.

Consequences of Inadequate Insurance Converage

A few years ago, someone I represented in my law practice neighbor's child tripped on a Play Station cord while visiting his home and struck her head on a table. Tragically, the child suffered brain damage. However, my client had only $100,000 liability coverage on his home. Consequently, nearly everything my client earned over 20 years on the job was lost.

Another client came to my office to discuss an accident. She was stopped at a stop sign in Park Ridge, Illinois, at dusk. This suburb has few street lights and short concrete posts for street signs. Moreover, while inching forward to see the street name, she did not notice an older woman who stepped off the curb simultaneously. As a result, my client bumped the woman who fell and struck her head on the sidewalk. The woman died that evening. My client had a 100/300 policy and approximately $600,000 in net worth. There was nothing we could do to protect her savings or the equity in her family home.

The Other Drivers

Consider the flip side of you not having adequate coverage - the thousands of uninsured or underinsured drivers you drive alongside every single day. You must protect yourself from damages another driver with too little or no insurance might cause to you or someone in your household.

Whether it is your home or vehicle, the time to ensure that you are adequately protected is now - before you drive again or invite a guest into your home.

Learn More

Contact CBA today for help finding the right Umbrella Insurance coverage.

Learn more about Umbrella Insurance by viewing this short video or reading this brief article.

Comprehensive Benefits of America

For an expanded presentation of asset protection and financial wellness strategies and to receive regular updates on strategies to protect what you have earned, visit and register with CBAPlan on the link below. Registration is free.

Visit www.cbaplan.com or call 1-312-559-8444 for assistance with registering.

Tom Tuohy is the founder and CEO of Comprehensive Benefits of America, LLC, and Tuohy Law Offices.

Are Your Assets Protected?

Asset protection is more important than ever before. Today, you have risks at every turn. Lawsuits, high cost of long-term care, auto and home accidents, or years of Probate. All too often, we settle and fail to consider the importance of comprehensive protection. In other cases, all we need is the best legal document to protect what we own. It is not worth rolling the dice and sacrificing your savings or your hard-earned assets. And it is next to impossible to keep up with what you need for protection. Many changes you need come without warning.

Homestead Real Estate

Suppose you are married and currently working as the police. In that case, your principal place of residence should be titled in Tenants by Entirety. This form of legal title protects your marital property from the creditors of one spouse.

Firearms

With the growing availability of concealed carry laws, more citizens are choosing to carry firearms and to keep them accessible for defense in their homes.

However, even for justifiable acts of self-defense, a claim for monetary damages can be made against you by your assailant or innocent bystanders. You can also be held liable for gun-related incidents while hunting, in gun clubs, or while shooting at commercial or private ranges.

Check out the Benefits Plan website for more information.

Asset Protection with Automobile Insurance

The most common auto policy written today is the same as it was 25 years ago – $100,000/$300,000.  It means you have $100,000 in individual protection for damages caused by you or a covered driver on your policy. Similarly, you have $300,000 total coverage for all injured parties. 

Consequently, you are personally responsible for damages that exceed these amounts. Even a minor accident can result in hospitalization, extended medical care, or death. However, Umbrella Insurance only costs an average of $250 per year. The policy provides an additional $1 million in liability protection for each covered vehicle and your residence.

Investment Real Estate

If you own commercial property, your renters can sue you for various reasons. For example, claims made for injuries resulting from property defects inside and outside of the residence. First, be sure you have the right coverage and are not overpaying. Secondly, eliminate any personal liability concern for excess claims by holding title to any investment property in either a Corporation or an LLC.  Moreover, a Series LLC allows you to separate liabilities from each property if you own more than one investment property.

Long Term Health Care

Will you need it?  For those who live longer than age 65, 70% will need some long-term health care. To clarify, only 40% of people will require inpatient nursing care. However, all long-term health care is expensive. Fortunately, there is a hybrid insurance policy that is offered exclusively to Benefits Plan members. This policy provides long-term care insurance and, if not accessed, it can be converted to life insurance at your death.

Living Trusts and Asset Protection

At the end of your life, or if you become incapacitated, property or bank accounts in your name, are at risk of Probate.

  • A Will must be probated. The rule is no one can legally sign your name. Therefore, all assets in your name are subject to the complete probate process at your death or incapacity. This court process averages 18 months and is costly.
  • A Living Trust completely avoids Probate.
  • A Living Trust estate plan includes both Health Care and Financial Power of Attorney documents and a Last Will and Testament for guardianship of minor children and to “pour over”  any assets still in your name at your death, out of Probate.

A Revocable Living Trust is a written, legal document that allows you to privately pass your assets to your family, friends, or charities after your death. Assets in a properly funded Trust are not subject to Probate. These include real estate, bank accounts, stocks, and minor beneficiary policies and accounts. Your life insurance policies and deferred compensation accounts can name your Living Trust as beneficiary, subject to essential tax considerations. However, often it is recommended that adult beneficiaries, without legal or other restrictions, be named as beneficiaries.

Comprehensive Benefits of America

For an expanded presentation of asset protection and financial wellness strategies and to receive regular updates on strategies to protect what you have earned, visit and register with CBAPlan on the link below. Registration is free.

Visit www.cbaplan.com or call 1-312-559-8444 for assistance with registering.

Tom Tuohy is the founder and CEO of Comprehensive Benefits of America, LLC, and Tuohy Law Offices.

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