Short Term Disability Insurance

Long term disability insurance is often provided by your employer as part of your benefits package. If you purchase it on your own, the benefits are tax free.

Short term disability insurance on an individual basis makes great sense as if involved in an accident you are more likely to be disabled than die. Therefore it can be argued that it makes more sense to buy long term disability insurance than life insurance.

Disability insurance policies differ from one provider to the next. It is important that you do your research and find the disability insurance policy that best meets your needs with the insurance company that you trust the most. Insurance companies, through an independent insurance broker, will gladly offer you disability insurance quotes free of charge. You can get quotes online now which is the easiest way as you are not being pushed by an agent.

It is important to purchase your short term disability insurance from a company that you trust, because you need the company to be there if you need them. When you get your quotes, be sure to ask questions about the company and the specifics of the policy. Disability insurance needs to be tailored to meet your needs and complement any existing insurance policies that you may already have. Again, be certain that you are buying the plan that meets your needs completely.

Probably the most important thing for you to do, is to read all the provisions of the policy before you buy it.

Ivon T. Hughes, The Hughes Trustco Group Ltd.

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Does a trust make sense?

These tools aren\’t just for Rockefellers. The notion of a legal trust may conjure up images of country clubbers cradling gin-and-tonics. The truth is a trust may be a useful estate-planning tool for your family if you have a net worth of at least $100,000 and meet one of the following conditions, says Mike Janko, executive director of the National Association of Financial and Estate Planning (NAFEP):

  • A sizable amount of your assets is in real estate, a business or an art collection;
  • You want to leave your estate to your heirs in a way that is not directly and immediately payable to them upon your death. For example, you may want to stipulate that they receive their inheritance in three parts, or upon certain conditions being met, such as graduating from college;
  • You want to support your surviving spouse, but also want to ensure that the principal or remainder of your estate goes to your chosen heirs (e.g., your children from a first marriage) after your spouse dies;
  • You and your spouse want to maximize your estate-tax exemptions;
  • You have a disabled relative whom you would like to provide for without disqualifying him or her from Medicaid or other government assistance.
  • Among the chief advantages of trusts, they let you:
  • Put conditions on how and when your assets are distributed after you die;
  • Reduce estate and gift taxes;
  • Distribute assets to heirs efficiently without the cost, delay and publicity of probate court. Probate can cost between 5 percent to 7 percent of your estate;
  • Better protect your assets from creditors and lawsuits;
  • Name a successor trustee, who not only manages your trust after you die, but is empowered to manage the trust assets if you become unable to do so.

Trusts are flexible, varied and complex. Each type has advantages and disadvantages, which you should discuss thoroughly with your estate-planning attorney before setting one up.

When it comes to cost, a basic trust plan may run anywhere from $1,600 to $5,000, or possibly more depending on the complexity of the trust. Such a plan should include the trust setup, a will, a living will and a health-care proxy. You will also pay fees to amend the trust if it\’s revocable and to administer the trust after you die.

For a trust in which you want to put the majority of your assets – known as a revocable living trust – you also have to have a \”pour-over will\” to cover any of your holdings that might be outside of your trust if you die unexpectedly. A pour-over will essentially directs that any assets outside of the trust at the time of your death be put into it so they can go to the heirs you choose. If you\’d like to learn about different kinds of trusts, read on.

5 standard forms of trusts

Credit shelter trust: With a credit-shelter trust (also called a bypass or family trust), you write a will bequeathing an amount to the trust up to but not exceeding the estate-tax exemption. Then you pass the rest of your estate to your spouse tax-free. You also specify how you want the trust to be used – for example, you may stipulate that income from the trust after you die goes to your spouse and that when he or she dies, the principal will be distributed tax-free among your children.

Generation-skipping trust: A generation-skipping trust (also called a dynasty trust) allows you to transfer a substantial amount of money tax-free to beneficiaries who are at least two generations your junior – typically your grandchildren.

The generation-skipping exemption has been increasing gradually and is $3.5 million in 2009. You may specify that your children may receive income from the trust and even use its principal for almost anything that would benefit your grand kids, including health care, housing or tuition bills.

Qualified personal residence trust: A qualified personal residence trust (QPRT) can remove the value of your home or vacation dwelling from your estate and is particularly useful if your home is likely to appreciate in value.

A QPRT lets you give your home as a gift – most commonly to your children – while you keep control of it for a period that you stipulate, say 10 years. You may continue to live in the home and maintain full control of it during that time. In valuing the gift, the IRS assumes your home is worth less than its present-day value since your kids won\’t take possession of it for several years. (The longer the term of the trust, the less the value of the gift.)

Irrevocable life insurance trust: An irrevocable life insurance trust (ILIT) can remove your life insurance from your taxable estate, help pay estate costs, and provide your heirs with cash for a variety of purposes. To remove the policy from your estate, you surrender ownership rights, which means you may no longer borrow against it or change beneficiaries. In return, the proceeds from the policy may be used to pay any estate costs after you die and provide your beneficiaries with tax-free income.

Qualified terminable interest property trust: If you\’re part of a family where there have been divorces, remarriages and stepchildren, you may want to direct your assets to particular relatives through a qualified terminable interest property (QTIP) trust.

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Car Insurance : Family Cars Have Low Insurance Premiums in the UK

Many things affect the insurance of your car. The model of your car influences the premiums it would attract. An expensive model can get you to shell out more on your car insurance policy premiums in the UK. Certain cars have a low insurance premium by default.

Certain cars fall under the category of what has come to be associated with \”family cars\” and these naturally attract less premiums because of the sparing and casual use that they are put to. The kind of vehicles that you may include here can be minivans and family sedans and other cars that fit herein this description. Such family cars are least involved in accidents. And they are usually used by average-salaried-class families. As family people tend to drive carefully and within speed limits. And so such families are naturally the favourites of insurance companies.

When you are asked to fill in the details such as your age, your credit history, years of driving experience, the car you have and the use of your vehicle, it gives any UK car insurance company an idea to assess you on the risk of insuring you. Various factors count toward the calculation of premium rates as what can be offered to you. The lesser the chances that you would ever claim insurance, the more the chances that you would be offered an insurance policy and that too, at good rates.

With the new age and the changing times, the option of Internet has given more speed and convenience to the customers. Apart from the usual insurance agents in the UK, car insurance can be applied for through the online application forms. The market is competitive and you have good chances of getting good quotes. Get the quotes from as many sources as possible and compare them at leisure. This is a fundamental principle of deciding upon insurance policies that might suit you best.

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Bonded Life Settlement: the Secondary Market for Unwanted Life Insurance Policies

Since everyone dreams to live a prosperous and financially free life, financial services that are helpful in making this dream true, are getting high heed by consumers. Purchase of life insurance policy is one of those financial activities that are helping people in securing their future financial requirements. These life insurance policies are helping people in making their old age hassle free to some extent but when it comes to arranging urgent finance for any emergency requirement, these policies fail to provide premature financial benefits to the policyholder. However, these policies carry supreme financial benefits but, as these benefits can be availed only after a cretin time period, a senior citizen may find his or her existing policy burdensome. To solve this problem, insurance companies offer life settlement facility, so that the senior policy holders may get an opportunity to sell their immature policy to arrange money for meeting their requirements. As far as profitability of life settlement procedure is concerned, the policyholder gets maximum amount from the sale of his or her policy. Life settlement procedures that are protected by bonding company are known as bonded life settlement procedures. This kind of life settlement procedure is safe and highly beneficial for both the parties.

Bonded life settlement is opening a secondary market for unwanted life insurance policies, as this procedure allows the investor to become new owner of the entrusted policy. This not only circulates a policy for a long time but also generates more profit for insurance companies. In fact, bonded life settlement is highly beneficial for every party that is involved in this policy circulation process. There are people, who think that selling an existing life insurance policy may decrease their financial benefits but in reality, it provides the policyholder with instant and reasonable financial benefits.

Basically, bonded life insurance policies are those insurance polices that have been underwritten as per the standards of the bonding company. This kind of sale and purchase of policy carries lower return on investments, as the investor pays the remaining premium amount after settlement. However, it is for sure that the policyholder gets maximum amount on the basis of face value of his or her policy. The insurance company plays a vital role in Bonded life settlement therefore, the policyholder can be rest assured about authenticity and security of that procedure.

Bonded life settlement is an unbeatable tool for seniors to sell off an existing policy that is no more needed. This kind of life settlement procedure offers maximum financial benefit on the investment of the policyholder. For all senior policy holders, who possess a bonded life insurance policy, this life settlement procedure is a considerable option, as it can sell off their unwanted life insurance policy in an highly profitable manner. An investor can purchase bonded life insurance polices through a bonded life settlement company, as only such companies are authorized to conduct life settlement procedures. In fact, this is a highly beneficial scheme for both the policy holder and investor, as it provides them with supreme financial benefits.

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Liability Coverage under Your Personal Auto Insurance Policy

Potential liability claims are probably a big concern for you as a car owner. Consider the claims that might be brought against you for bodily injury or property damage (or both) resulting from a car accident. Adequate liability insurance coverage can protect you from the financial burdens associated with such claims.

Why buy liability insurance?

All states have financial responsibility laws that require owners of vehicles to prove they can pay for bodily injury and property damage caused by the use of their automobile. By far, the most common way to comply with financial responsibility laws is to buy an auto insurance policy. The liability limits of the policy must at least equal the minimum limits specified by your state. Even if you can prove financial responsibility in another way (e.g., by posting a bond), you still might have reasons to purchase liability coverage. If you have any valuable assets (e.g., home, car, stock portfolio), you\’ll want to protect them. If you\’re sued, and you don\’t have enough insurance, a large judgment could wipe you out financially. Also, keep in mind that if you\’re interested in buying excess coverage (an umbrella policy), you\’ll need a certain amount of primary insurance first under your auto insurance and/or homeowners insurance policies (typically in the $250,000 to $500,000 range).

Who is an insured?

The way in which your policy defines an insured is very important. Anyone who is an insured has some protection under that policy. If you bought the policy and you own the car, you\’re the named insured. But you\’re not the only person who may be covered by the policy. There are probably more people insured under your policy than you think (e.g., household/family members). Check out your policy for the complete list.

Is there a limit to liability?

The liability limit is the maximum amount that the insurance company will pay for an insured loss, apart from any supplemental payments. Insurers may use one of two different methods to determine liability policy limits:

  • Single limit: Your policy states a single dollar amount (e.g., $100,000), and your insurer will pay all covered damages, regardless of damage type or number of parties injured, up to that limit. You\’ll bear the burden of any amount over that limit.
  • Split limit: Here, you\’ll see numbers like 100/300/50. This means that you have $100,000 coverage per injured person, up to a maximum of $300,000 per accident, and $50,000 for any property damaged in that accident. Again, you\’ll bear the burden of any excess damage.

The method that your insurer uses may depend on state law requirements.

When your insurer won\’t pay

The exclusions section of your insurance policy specifically sets out the limitations and restrictions on the coverage provided in the policy. Under the liability portion of your policy, coverage is generally excluded in the following situations:

  • Damage or injury is intentional
  • There is duplicate coverage (e.g., claims covered by workers\’ compensation)
  • Your vehicle is being used as a taxi or in a limousine service (car pool arrangements in which expenses are shared are not excluded)
  • The car is being used to participate in racing or speed contests on a track

The liability coverage of personal auto policies is quite broad, subject to certain exclusions.

Keep in mind that insurers can only calculate risks on your known vehicles. So, if you own a vehicle that is not listed on your policy, your insurer may deny coverage if you\’re in an accident while driving it.

Supplementary payments

Your auto insurer will make certain payments above and beyond the policy limits for specific expenses that you incur in connection with an accident. They may include:

  • Costs of defending lawsuits, including legal fees
  • Bail bonds
  • Appeal bonds
  • Attachment bonds
  • Interest on any judgments
  • Expenses incurred by the insured in defending claims, including lost wages

It\’s important to note that there is supplemental coverage for bonds only if they are required as a result of an accident that caused bodily injury or property damage–not just for tickets or arrests for traffic violations.

Out-of-state coverage

The out-of-state coverage provision indicates how your chosen liability limits will apply if you are involved in an accident that occurs outside of your home state. If the other state has a higher minimum liability limit for nonresidents than the amount you are insured for, your policy may be interpreted as providing that higher minimum limit. However, a conflict between the laws of your state and the state where the accident occurred may ultimately have to be resolved by the courts.

Other insurance

The purpose of the other-insurance provision is to establish the company\’s responsibilities if the insured has more than one applicable policy or is driving someone else\’s car. In the first case, each insurance company will pay its proportionate share. In the second case, insurance on the car being driven is tapped before the driver\’s insurance. The driver\’s insurance is excess over the policy purchased by the owner of the car.


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People thought I Was Crazy to Buy a Mexican Home and Mexican Home Insurance


When you first mention to your friends and family your intentions of purchasing a home in Mexico, they may think you have gone looney or that the process is impossible, they think you are even more crazy when you start looking into the different documents you need and the Mexican home insurance you will have to get. Most of your family will think you have gone crazy and other more adventurous souls will think you are doing just the right thing.

Let me explain something that many people believe wrongly in the U.S. and Canada. It is not impossible nor difficult to buy a home in Mexico, and it doesnt take a lot of work, effort or money. You wont be ripped off unless you really have no idea of what you are doing. In my years of selling Mexican home insurance to foreigners I can\’t remember the number of times people have told me: \” we were actually told that we couldn\’t buy a home here, that we had to lease it.\” This is absolutely not true. In some cases when you decide to purchase beach front property then you have to buy through a bank trust called a FIDEICOMISO. Here you own the property for the term of the trust and then your survivors renew the trust for another 50 years, but this only relates to beach front property.

You will also need to find a good Notario Publico otherwise known as a Mexican real estate attorney. This is a certified attorney whose specialty is real estate law, and he is appointed by the Mexican government to ensure that all real estate transactions are legal. Are there crafty ones? Of course there are, just as there are scam artist, or mortgage brokers that charge an arm and a leg in your own country. To avoid this ask your realtor to suggest or recommend a good notario for you.

The following steps will help you find the right home purchase in Mexico.
1. Look for a realtor you feel comfortable working with.
2. Look for a house that meets your needs. Find the home in the right neighborhood.
3. When you have done all of the above steps the realtor will make a contract to purchase, but it must be in Spanish. Not to worry though you can always have it translated for you by an official translator.
4. Wait for 60 to 90 days for the paperwork to be finished.
5. Don\’t forget to get that mexican home insurance

Frequently when foreigners buy a home in Mexico they need the right Mexican home insurance, especially when the home is not lived in full time.You dont ever think of buying a home without getting insurance in your own country so why should you not think of buying Mexican home insurance, and other insurance needs like Mexican car insurance and Mexican life insurance too. For more information on mexican home insurance or mexican life insurance come to

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