How To Use Life Insurance To Protect Child Support

Posted by Tim Blankenship on

How To Use Life Insurance To Protect Child Support

Jon: Well, one of the other places where this goes, this is some actually, creating need for additional life insurance where people may have not thought about it before.

Let me give you an example. Let’s say a husband and wife Divorced.

And as a result the husband has to pay some support to the wife on a monthly basis for X number of years whatever that maybe.

Maybe until the child is 18 or something like that. Well, what happens if something were to happen to that primary wager, the father the male in that scenario?

Well, same what happened in the not many would stop coming. So a lot of times what people would do and they do this to benefit their children too, is to go ahead and take a life policy.

So for example, the husband or the ex-husband would take a life policy out and the wife would be the owner, excuse me, the owner of that life policy.

She would own it. By all the means that means she has all the rights to it.

She can decide who the beneficiary is. She can make changes to the policy.

Meanwhile the husband or the ex-husband is the payor. He is the one that pays the policy.

So he might pay the premium on each month for the policy. And then the beneficiary is either the wife or the children.

So that way if something were to happen to the husband, some unfortunate accident, the wife would still continue to have proceeds being able to be paid to her without even him being there.

So it’s not a double tragedy.

Tim: Yes, and I’ll set this stage for you on this, just in details. So we’re talking about, let’s say a wife in this case, we’ll use the same scenario.

Stay at home mom, 20 years never work and that’s in our town that happens quite a bit.

Jon: Yes.

Tim: A husband working full time job maybe close to retirement or what have you, you get Divorce.

Now there’s going to be spousal support well same child support as well unto the next…

Jon: Right.

Tim: And if he were to die, the payments would literally stop.

Void any retirements or anything like that where the beneficiaries been for purposes of alimony, spousal support and child support.

Those things they will just stop. There’s no more income. There’s no other place to get this.

Jon: And where would you go?

Tim: Right.

Jon: There’s nowhere to turn to. And the courts can’t help you at that point.

Tim: Right. That’s it! The risk is spouse if the payor spouse dies, the spousal support stops instantly.

 

 

How To Calculate Life Insurance To Protect Spousal & Child Support

Posted by Tim Blankenship on

How To Calculate Life Insurance To Protect Spousal & Child Support

Tim: So how would you suggest someone calculate the amounts of coverage in those types of scenarios. Does there any way to factor that at all?

Jon: If that’s this whole purpose of this specific policies, I mean the other life insurance need might be taken place, then it’s a fairly simple calculation which is looking at how many years that there would be and how much per month in doing the Math and saying, ‘Okay, if it’s $500 a month for X number of years in calculating that out that would be a starting point.’

Tim: Okay.

Jon: Now that’s just to say that’s the alimony of the child support. That doesn’t mean that there is an opportunities especially when children are involved to say ‘You know what? I want to make sure that my children also have funding for their college education.’

Tim: Yes, I didn’t think about that but, yes.

Jon: And anything else or I want them to be able to have money to buy their first car, whatever it may be, regardless what happened between you and your spouse you don’t want the children to suffer at least financially and this is one way to ensure that, that doesn’t happen.

So the starting point is really, what is that monthly support, going to be times the number of months. But looking at some of these other issues are also important considerations.

Tim: So that’s just the very minimum, is the income portion? Let’s do a little bit of a Math.

Jon: Okay. I can do some Math.

Tim: Oh, I’ll make it easy.

Jon: Alright.

Tim: Let’s say your spouse is paying a $1000 a month.

Jon: Okay.

Tim: …for ten years.

Jon: Okay. So it’s a $120,000.

Tim: Okay. So if we took the very minimum, would you say $120,000 policy?

Jon: That would be the very minimum a $120,000 policy.

Tim:  Now just to be covering that part of —

Jon: Well cover that part now recognizing your five years into it, and if you’ve already paid $60,000 of it…

Tim: Yes.

Jon: So there’s a little bit of extra. But when you purchase a policy like this the assumption you have to make is what happens if something happened tomorrow?

Because that’s the worst case scenario and that’s what you have to plan for. So you can always make the decision later on to reduce coverage.

So if you’re getting close to the end and you don’t want to pay the full $120,000 you and your spouse can come to an agreement because remember your spouse is the owner of the policy.

So they have to agree to this.

Tim: Agree to this.

Jon: You may come to some other financial arrangement at that point to lower the coverage. It will only cover the remaining months.

Tim: Got you! So for purposes of the term of the policy in this scenario where we have some payment of $1000 a month for 10 years…

Jon: Right.

Tim: …would you say get a 10 year term policy? We’re talking term insurance.

Jon: Right, we’re talking term insurance. And again, if it’s only this issue, yes, because you’re my guest is that the ex-spouse isn’t necessarily looking to fund the life insurance beyond that.

So there might be some sort of one maybe when the children turn 18…

Tim: Yes.

Jon: Maybe when the one child turns 18 at that point. Well even with that, again, what’s best for your children, what’s best for your financial situation.

I know it’s not an easy conversation to have it at that point in time.

Tim: Right.

Jon: …with the ex-spouse, so, yet this is the very minimum but you will get things like how easy will it be for the spouse to go back to work which he’ll be able to go back to work if something happened.

Tim: Right.

Jon: What is her living arrangement? Is she some sort of situation where she’s getting the extra money beyond that 10 years?

So all these things should be factor on both sides and when these decisions had been made, how long to purchase this policy for and for how much the whole situation should be looked at on both sides?

Tim: And just in general life insurance regardless of Divorce these are things you need to look at regardless…

Jon: Right.

Tim: …I mean spousal support or keeping things going for your wife for you kids college and…

Jon: Yes, I mean the hardest things you hear stories are and I’m sure you’ve heard these stories too where something happens is somebody you know and they’re going around to people where just to get money to borrow them.

Tim: Yes.

Jon: I mean it’s just a really sad situation especially in most cases when life insurance isn’t all that expensive relatively speaking.

And it doesn’t benefit you or me if we’re the ones having ‘we-go’ but to known that my family is taken care of, is pretty important to me to know that my kids will still be able to do the things they wanted to do so even outside of the Divorce.

Life insurance is one of those it’s such a small investment for such a big potential benefit down the road.

Tim: Right.

Jon: And the worst case scenario, if you don’t use it? You don’t use it.

Tim: Yes. And you’re alive.

Jon: Yes, what a great scenario. We actually have policies that do return on premiums.

So if it’s out with it, they’ll actually give your money back.

Tim: Really?

Jon: There are policies like that now too.

Tim: Wow!

Jon: So there’s —

Tim: No reason not to have it.

Jon: no reason at least not to talk to somebody about it.

Tim: Right.

 

How To Agree On Realtor During California Divorce

Posted by Tim Blankenship on

How To Agree On Realtor During California Divorce

Tim: Right! So we have people that come to us not usually disagreeing. They know they have to get rid of the property one way or another.

It’s either to sell it, refinance it, or even someone staying in the home and keeping the current mortgage if they can’t refinance.

At least our clients, we’re doing more amicable style cases here as opposed to litigated cases. And they’re trying to work on it.

But sometimes they have questions like what are my options?

So I brought up some other slides here that I wanted to kind of just go over, see if this is going to cooperate. Go down and up, okay.

Connor: One of the things that we find and I know we’ll probably get through this further in the conversation but when somebody is looking for a Real Estate Agent to handle their Divorce, there has to be a clearly laid out plan.

And it has to involve rules, rules that cannot be broken or sacrifice by either party including a Real Estate Agent.

So these are actually written out rules. How are all the parties going to communicate?

How are they going to express themselves throughout the transaction? How are they going to come to an agreement?

Because it could be for example you put a property on the market and at a pre-agreed to price from both parties, let’s say $500,000. And then one of the party changes their mind and says, ‘We want more.’

Tim: Right.

Connor: So now we’re kind of stucked. So all of these things professional agents that know Divorce is going to have them written out.

And there’s going to be rules. And all parties have to sign it.

Tim: So you have specific agreement kind of between them?

Connor: Absolutely!

Tim: This is not a Real Estate form? This is something that you have them kind of –

Connor: Correct.

Tim: Which actually say, ‘This is what we agree to do.’

Connor: Absolutely!

Tim: Smart.

Connor: And even with the form, I mean ultimately, is going to hold up in court? Who knows? But at least it’s going to keep us out of harms way because on that form itself there are other methods that hold me accountable and my staff accountable too.

Tim: Right.

Connor: For example, in the attorney world and you were a cop for a long time and so on so as I, that Ex-Parte Communication, the party is going and speaking with one another outside of everybody else’s ears when they shouldn’t be not speaking with those other parties, we establish that on this form that we have that our client signed that that’s not to take place.

If we’re all in agreement, I can’t accept the phone call from one of the sellers because it’ll takes two to get Divorced, right?

Tim: Right.

Connor: You can’t accept the phone call without having the other party involved. Even if it’s to ask me something that seems very innocent.

Tim: It’ll take one thing for them to say, ‘Oh, you’re talking to my spouse!’ and that’s it.

Connor: Done, yes. ‘Oh, I thought we had this agreement.’ and without the agreement all that stuff is null and void.

Tim: Yes.

Connor: So that’s why we have it all established that on papers. So when we get to that point of process and it’s happened.

When somebody call, ‘Hey Connor, it’s Mr. Smith. I know you’re taking care of our Real Estate with regards to our house and our Divorce and such. But I just had a quick question.’

Well, Mrs. Smith now finds out that Mr. Smith talked to me. And I actually gave him an answer even something innocent that doesn’t have to do with anything, now that’s a violation of trust.

Tim: Right.

Connor: So it has to be put down

Divorce Paralegal In Fullerton CA – Fullerton Divorce Service

Posted by Tim Blankenship on

Divorce Paralegal In Fullerton CA – Fullerton Divorce Service

Today we’re talking to the folks in Fullerton, California who maybe thinking about going through a Divorce or maybe you’re amidst of Divorce and you need some help with your Divorce case in Fullerton.

Licensed and bonded Legal Document Preparation Firm. We specialize only in Divorce. So we help clients all throughout California.

So I wanted to let you know a little bit about our business and perhaps we would be the best choice for you to help you with your Divorce case.

We are that attorney alternative service. We’re here to help you with your Divorce. We are a full service Divorce Paralegal Firm.

So what that means is we will do everything from A-Z just like a law firm would. The only that we don’t do is to give a legal advice.

So we’re not looking for folks who are going through an Amicable Divorce or trying to work towards getting their Divorce case finished without having to go to court.

And if you use our service and you are working towards an Amicable Divorce, you won’t even have to go to court.

So the courts don’t want to work and see you in their court rooms. They want you to work things out on your own.

And we can help facilitate that. We are a neutral third party, so, we can work with both spouses at no extra cost.

Now being that we are a full service, we’ll do everything from filling out the forms, going down to your local court house and file them for you, so, you don’t have to deal with that.

We’ll serve the documents, do all the financial disclosures, all the processes and procedures as the court requires. We will take care of.

And we’ll complete your final judgment. That means the agreements.

And we’re talking about who’s getting what property? How are you going to divide things up? What are you going to do with the kids? Who’s going to keep them?

If you’re going to share them, custody visitation, child support, spousal support, all of that.

We have all the forms and all the software that the courts and attorneys have. We have access to all of that.

So there’s no need for any other outside services. We can get you through your entire Divorce case without any additional fees.

Now if you did any additional services like mediation or things of that nature, we can point you on the right direction by either way using our services is going to be the most affordable, streamline way in getting your Divorce completed here in California.

So make sure right give us a call. Free consultation, we want to make sure that you’re a good fit for our company and you have a case that we can help you with.

So give us a call. We’ll run through the process and procedures, what’s going to take to get you done.

And then when you’re ready to move forward you just let us know and we’ll be ready to move forward for you.

One more thing, you won’t have to come to our office. I’m not sure if I mention that.

We do have clients all throughout California. So you won’t have to travel to our office.

We’ll do it right over the phone or via email or whatever is easiest for you.

 

Divorce Paralegal In Brea California |Brea Divorce Service

Posted by Tim Blankenship on

Divorce Paralegal In Brea California |Brea Divorce Service

Today we’re talking to the folks in Brea, California. I want to let you know a little bit about my company and how we can help you with your Divorce in Brea, California.

I’m a licensed and bonded Legal Document Preparation Firm. It’s the company that I own. We specialize only in Divorce.

So we are that attorney alternative. We are that affordable option to get you your Divorce completed in Brea.

Now we are a full service Divorce Paralegal Firm. So what that means is we do everything from A-Z for you.

We will take care of prepping the documents, filling out the forms. We don’t leave that for you to do.

We’ll fill out the forms. We’ll go down to the court. We’ll file them. We will serve them.

Handle all the financial disclosures, all the processes and procedures that the court requires so we will take care of that.

And we’ll also complete your final agreements. So when you get Divorce, you have to distribute your property, your assets and debts.

That’ll have to be divided. You have to deal with your children as far as custody, visitation, child support, spousal support, all of that is dealt with in your Divorce.

And we can take care of that for you. We have become the go-to firm in California for affordable Divorce services.

So make sure you check out our website at Divorce661.com. We do handle all of California.

And there’s no worry, you don’t have to come to our office unless you want to. We do help clients all throughout California.

And we have a streamline method of filling Divorce cases with all the courts throughout California.

Feel free to give us a call. We’ll be happy to provide our free over the phone consultation, talk to you about you and your specific circumstances that you’ve got going on with your situation.

And make sure you’re a good fit for our company, explain to you exactly the steps and processes it’s going to take to get your Divorce completed in Brea.

And wrap things up for you. I’ll be happy to do that for free. Free phone call consultation. Make sure you’re a good fit.

You can go to our website at Divorce661.com. We have our pricing right on our webpage, right on our pricing page.

It’s upfront. It’s flat fee, there’s no hourly rates. And it’s a good way to get your Divorce done if you’re looking to hire a professional firm to complete it for you or you won’t have to worry about the steps, the process and the procedures and you won’t have to go to court.

We work with clients that are going through what we call uncontested Divorce cases. So these are folks that are trying to work towards an agreement.

They’re trying to come up with the agreements for their Divorce. They’re not trying to go to court to fight over things.

They’re going to work things out as best as they can on their own. We can assist you with mediation services if you need help coming to agreements.

That’s not a problem. We just don’t help folks who are going to court and fighting over things.

So we’re looking for those amicable style cases which we do so many cases now in California that’s a lot of them go that route.

So give us a call. We’ll let you know if your circumstances will work with our company and it’s something that we can get done for you.

So just give us a call, that’d be the easiest way to figure things out. And again, we’ll help you anywhere in California.

But for the folks in Brea, we look forward in helping you when you need us. Thank you.

Homeowners Insurance Issues During Divorce

Posted by Tim Blankenship on

Homeowners Insurance Issues During Divorce

Tim: Let’s talk about Homeowners Insurance.

Jon: Okay.

Tim: What do you have for us is there. And I was looking for some notes that I found online really just changing policies or Renter Insurance if you’re going to sell the family home, you’re going to be renting and you’re talking about maybe something combining Renters Insurance with your other insurance and you’ll get some discounts.

Jon: Right. So I’ll start by saying this, when we say Homeowners Insurance we’re only talking about people who own homes and people who might own condos or who might actually rent an apartment or home or any house.

So it kind of encompasses all that. The big difference is from an insurance standpoint you’ve been paying most likely for one home or one residence where you live.

Well and all like we said, as you split up you’re going to need to pay for two. So again there’s a cost issue here which brings up the idea of ‘it’s time to take a look.’

You might have been in a home before. And now you’re going to rent a location.

What that impacts insurance as well, is companies almost all companies gives discounts when you have your home, car with or your home and rental with them.

So again it’s another opportunity that if you’re going to go ahead and split things apart to take a look and take advantage really of any discounts that may be available.

Most companies give a little bit bigger discounts if it’s a home or a renter but that doesn’t mean that there isn’t opportunity for you that if you’re going to split apart and you’re now renting an apartment to look for what company gives you the best discounts and overall it’s a package.

Tim: Okay.

Jon: So that’s one thing that we certainly would want to encourage people to do.

Tim: To look at not only add over to get your Renters Insurance and maybe combining packages.

One thing I tell people is, when they get Divorce like were talking about separate households, separate incomes, you now have the same income the two parties were making, now handling two households it’s never going to be the same…

Jon: Right.

Tim: …scenario financially. It’s not going to be the same scenario to live in some cases.

Jon: And it’s unfortunate because that’s the time when the insurance piece which nobody likes to talk about is actually probably going up as well because you’re now ensuring more things and you have to ensure before.

So it just drives to the point of looking at it and making some good decisions and working with somebody who can walk you through that process.

Tim: And bringing up the things they don’t need and they don’t know to bring up. That’s one of the biggest things in my line of work is they don’t know the questions they should be asking.

Jon: Right.

Tim: Right? So they probably won’t even be thinking that maybe they thought ‘Hey, Tim told me that I should talk to John about my Auto Insurance.’

And then you’re going to bring up, ‘Okay, so where are you moving? Are you going be renting?’

Jon: Right.

Tim: Let’s talk about Renters Insurance.

Jon: Well and I think the other piece that goes in there too is as you separate your belongings, most policies have special coverages for special blinds like of the wedding ring for example or your mothers jewelries, all those things.

Well, you might be taking those out of the Homeowners policy and you’re moving you’re taking them with you when you do the Renter Policy. Well those things need special coverage too.

So there are maybe things you hadn’t thought about before and again driving home at the point of reviewing it.

And if you have anything that’s a value maybe you were able to take that out of the relationship, then you want to make sure you have the coverage for it as worth it as to take it out the relationship…

Small Business Video Marketing Success

Posted by Tim Blankenship on

Small Business Video Marketing Success

Tim: So Connor MacIvor, Santa Clarita Real Estate expert. I’d be surprised if you’re not able to watch this. I’ve already watched one of your thousands of videos.

Connor: Oh yes! Most of my crappy videos I have two views, one is to me and one’s mom. So that’s pretty clear.

Tim: My kids joked at me because they say, ‘Dad you only got five views on that video.’ And I said, ‘Yes! But I have 500 videos times five and some get more five some get several hundreds or thousands but yes they’re not like viral videos.

It’s an information based that are out there for people who are researching for this information.

Connor: Right!

Tim: …to find it.

Connor: And we don’t have the cute kitten.

Tim: No!

Connor: That’s fur is particularly near the baby in the bath tub.

Tim: Yes.

Connor: That was a funny video.

Tim: So you have I mean you have, I kind of copied everything you’ve done just so you know.

You have podcast. You have video you do daily. You do slideshows. You do blog post too.

I mean you have so much content out there no matter what mode you like to digest it, it’s there, it’s available.

Connor: You know what this is good for and you embraced it. And I’m so impressed!

People want to see you. They don’t want to see an actor. They don’t want to see somebody that’s trying to post himself through another person as trying to be the best of the best.

They want to see transparency.

Tim: Yes.

Connor: This is an off the cuff interview basically between you and I. And this is what people want to see.

Tim: Exactly!

Connor: We’re not going win wars. We’re not going to go viral.

I’ve had some videos that have gotten a lot of views that I don’t know why. I can’t pull it apart and figure out why that one.

But maybe the key words were right, maybe the story was right, maybe the day was right, who knows? But this is how people learn.

And I know when I’m watching videos on YouTube especially if it’s this interview format, I’ll just let it playing go on—

Tim: With the background, yes?

Connor: Yes.

Tim: Yes.

Connor: Because it’s such educational.

Tim: That’s the whole point education. We get all videos and podcasts. We have this live broadcast on Thursdays –

Connor: Got your radio show?

Tim: Actually, well I had it open. People can actually go on and chat real now. This is only our fifth one.

So as soon as we start marketing this, I think this is going to catch on three or four months. People are going to start coming in and I hope asking questions.

And we won’t even have to have a topic. It’ll just be ‘Okay, what’s the question? Call me now.’

Connor: Absolutely!

Tim: And do it that way. So that’s really what I’m hoping for that route. So how can people get a hold of you?

I mean they should call you if they’re thinking of Divorce and needs some information?

Connor: Yes, we have everything primary displayed on our website Paris911.com.

Tim: I did that. Are you impressed?

Connor: [the Codec 38:22].

Tim: Yes.

Connor: Yes, it’s good. I love that player [the Codec 38:25].

But yes, just go there in any contact on that site you’re going to get me. So you’re going to talk to yours truly. Usually my voice is an S sexy…

Tim: Very raspy.

Connor: Yes, now. But it’s like a bedroom voice. Some mic I do pretty well. But anyway, yes, so that’s the best way to reach out and I’ll answer your questions.

One of the things that’s important, interview multiple agents. The thing is to whenever you’re looking to get information, don’t sign anything right away.

If they’re bringing you to their office to talk to you and they hand you a piece of paper they say, ‘Well, I need you to’ – ‘Come on, really?’

You just want information. So understand that going in, not all agents are crazy. You will know but not everybody is the same.

So interview those most you find to be the most comfortable because you’re about to go on a journey that could get really ugly.

It’s already probably ugly because now here you are getting Divorce. Find somebody that sympathetic to that.

Tim: Yes. And you have an AP?

Connor: Oh!

Tim: I love that AP. I have it on my phone. What do they need in iTunes? What do they search for to find your AP?

Connor: Yes, as far as searching for housings.

Tim: Yes.

Connor: There are couples. You can look for California Homes. That’s our AP in the AP store. It’s also in the Android market place.

You can also text the letters SCV to 87778. So if you have your cell phone right now or iPod just text the letters SCV for Santa Clarita Valley to 87778.

So that’s pretty easy. So yes on our website Paris911.com and get there you’ll see the Mac Box at the top part.

It’s like a search thing, you can also punch the word AP in there and you’ll get all the downloadable stuff.

Tim: Very cool.

Connor: Yes, you’ve done a fantastic job with Divorce661.

Tim: Can you tell I copied you?

Connor: Oh, don’t say that.

Tim: I copied you.

Connor: I didn’t think of that.

Tim: Yes, I did. I see your blogs and it works, let’s do that. The videos do videos and—

Connor: You’re just—I like the informational approach. And I think people like that. People don’t like to be sold.

You’re not asking for anything.

Tim: No!

Connor: You’re not saying 70 50 Bucks and I’ll do this. You’re showing people how to save. What was that thing you had coming out that came out this morning?

Saving $492—

Tim: For filing fees, yes.

Connor: Yes, that’s awesome!

Tim: Yes.

Connor: I mean really? Who’s doing that?

Tim: Yes.

Connor: Who’s even mentioning that?

Tim: Right.

Connor: It’s—

Tim: It’s funny in that sequence that was the most opened email.

Connor: Yes.

Tim: So people have money on their minds when—

Connor: Absolutely!

Tim: …when going through this. But going back to what he said about just being real people and not actors and giving out information, people watch this and they see who we are. And they’re going to make their decision.

Do I like that person or not? So it helps people make that decision so they’re not going call if they watched us and getting in to something that we don’t like that guy and –

Connor: Yes, he’s got no hair.

Tim: Well good then that saves me time. People that call us they usually say, ‘Tim, I saw you. I watched several of your videos.’ They already know you.

Connor: Yes.

Tim: When they come in to for services we go out there and they’re already getting up the couch, I don’t know who they are. But they already know me.

Just so the video, my voice and all that now in town people are starting ‘Oh, I saw you on Facebook.’

Connor: Buy you drinks and offer—

Tim: Yes. Well, I appreciate you coming out here Connor. This was great.

Connor: You’re welcome.

Tim: Yes.

Connor: Absolutely.

Tim: I really like this whole interview set-up we got here.

Connor: Yes, it’s really nice and you’re doing a great job.

Tim: Cool! Alright, let me see if I can figure out how to shut this down. I tell you this is a three man operation and I’m doing it all by myself.

Every Thursday, live broadcast at 1pm. We have a chat room if you go to Live Cast tab on the Divorce661.com website and it’ll take you right through the most recent broadcast coming up.

And the chat room is just below the video. And we’ll know if you’re online and watching otherwise you can ask question.

We are monitoring it. So hopefully this will catch on.

Connor, Paris911.com thanks so much for coming. I appreciate it.

Connor: Pleasure.

Tim: And well hopefully to have you back on again soon.

 

 

Divorce A Good Time To Revisit Auto Insurance

Posted by Tim Blankenship on

Divorce A Good Time To Revisit Auto Insurance

Tim: The liability extends for instance if they have low policy coverage of maybe $15,000 and then the injuries perhaps exceed…

Jon: Right.

Tim: …that they could go after. They reach out some other liability there?

Jon: Right, so, you bring up a good point which is the coverages. And when you go through a Divorce, most likely, you haven’t looked at your coverage for a few years.

And the coverage really should match the assets you have.

So if you know you have a million dollars with your assets, you should probably have the million dollars with the liability to protect that.

So as you separate and then your assets makes many change in a certain area. So there were many changes.

So it’s a good time to revisit. But to answer your question, about having lower limits like that you’re absolutely right.

So what happens is in my scenario where I have the accident, if I have little limits just because if someone sues me for a $100,000 and I’m carrying a State minimum like about $15000. I’m not personally liable for that extra $85,000.

If my wife is still registered on my car now, she just became liable for that, my ex-wife she just because liable for that as well.

Tim: Right.

Jon: So really it’s a good time especially if somebody else has been no one taking care of your insurance or you haven’t looked at your insurance in awhile, it’s really a good time to revisit those coverages and make sure you have the liability that you need.

Another piece of that is the uninsured mother’s support. So if for example, if you hit me and you don’t have enough insurance or you don’t have any insurance, my policy if I have the proper protection will still protect me as if you would have that insurance.

So that’s important too. So if you’re going to the review, that’s really good to go with it with a broker or agent and goes through all your policy coverages.

Make sure you understand what they need. And pick the levels that are right for you.

Tim: So if you had a million dollar that worth combined within you and your spouse and you’re going to have the assets, let’s say now $500,000 you’re not going to want that lower potentially?

Jon: You could. It’s one thing to consider especially in your time of saving cost and they will tell you that the cost different is very minimal.

In those kinds of situations and the other thing is it’s not all your assets, it’s what your future income is.

So you may not have a lot of assets but you’re making a hundred grand a year, then in California they can come after a portion of that.

They can garnish your wages. So one way or another it’s still a good idea to just kind of assess how much you have, how much you might be making and then swap the proper coverages.

And let’s say going through Divorce is a perfect time to think about those kinds of situations.

 

 

Life Insurance – What’s The Best Age To Lock In Long Term Life Insurance?

Posted by Tim Blankenship on

Life Insurance – What’s The Best Age To Lock In Long Term Life Insurance?

Tim: Now that makes me think something not really related to Divorce per se you’ve had mentioned you’re getting out the workforce in maybe in time.

What about folks kind of later in life 50, 60’s or 70’s retirement age retired? And I’m talking about my folks, specifically.

Jon: Okay.

Tim: My dad work for Union. He had some pensions with Union. Thank God! But he died of cancer.

My mom never worked. And is that a scenario where life insurance would have been beneficial or at that age is it more difficult to get that those types of insurance policies?

Or they cost prohibitive because it caught up my mom in a bad position because she has Social Security and a small pension.

Thankfully, there was at least that small pension that passed on to her. But —

Jon: Had there been insurance?

Tim: But had there been insurance policy to boot?

Jon: Right.

Tim: You know that’s something would get older to help protect their spouses. Is that–

Jon: At that point, it’s great if you can do it. And that’s what people at that age intended by life insurance for it for a State planning issues and all the cost associated with the State taxes.

And that’s other conversation for different expert here.

Tim: Sure.

Jon: So that’s what where we tend to see it. It is difficult for somebody as you start to get passed 55 or 60 it does starts to get fairly expensive because you can’t pay just $30 or $40 a month for a policy.

And they expect a million dollar path because when you’re that old, you’re getting closer to or like where the life companies expect you to not make anymore.

So it’s great if you can do it like maybe around 45 or so. And do something like maybe a 30 year policy.

Tim: Okay.

Jon: Then that way that will take you out into retirement. Then you can make the choice.

So let’s say now you’re 60 or 65 and when you look at your retirement fund and you look at your pension and you say, ‘If I did go is there enough?’

Because then you could stop. You don’t have to continue paying the life policy. But it gives you that choice.

And having that choice when you hit retirement is important because once you hit retirement you don’t really have a choice anymore.

So that’s how we tell people to get it and then we can re-evaluate. If you don’t need it anymore we either reduce it or pull it off.

It depends on the situation.

Tim: That’s good. Now kind of around 45 and try to lock in—

Jon: We should talk the terms.

Tim: Yes, I know we haven’t talked yet. I’ll just tell him I need a little weight to get the premium down a little bit.

Jon: There you go!

Tim: That’s my goal. And I can gain all the way back. That’s the plan. No!

Jon: I didn’t hear that.

California Divorce | Importance Of Changing Beneficiaries After Divorce

Posted by Tim Blankenship on

California Divorce | Importance Of Changing Beneficiaries After Divorce

Tim: Good. The beneficiaries and then we talked about a little bit on health or life specifically.

I don’t know if we touched on the importance of changing beneficiaries after the Divorce has finalized because we’ve all heard the whole stories not only with health life insurance but with…

Jon: Financial services and 401K’s and all those.

Tim: Yes, and investments where they are not changed. And is it going to your spouse?

And I’m sure that if you’re Divorce that wasn’t the intention. Because the important thing to know is, when it comes to you and let me know if this is correct or not.

When it comes to your Divorce judgment your Divorce Decree if you will, if you said, you’re keeping your life insurance policy or these investments, and you die and you haven’t changed your beneficiaries, that beneficiaries will over-way the ruling of the court.

Jon: That’s correct. So once the Divorce is final, that is the time when you are allowed to make the changes and it does makes sense to make the changes.

And then part of that though, one of the natural things to do is to go ahead and make changes on, when I’m going to make my kids as the beneficiary.

The problem with that is you have to be careful is no one is going to give a $100,000 policy to a six year old.

So you only have to worry about that. But the question is who handles that money during that time between until they become age 18?

And even once they become age 18, do you really want your child inheriting the $100,000 not inhering but getting a $100,000.

So this is where even when you separate, it’s the time to look at things like a state planning and things of that nature, so, that you can make sure that the policy benefits really are doled out way you want them to be doled out.

So it’s really a good time to kind of look at all your financial picture. Not just the insurance but the state planning. Look at things like 401K’s, look at things like your own retirement.

Tim: Yes.

Jon: What you’re going to do now? You can’t rely perhaps on your ex-husband’s pension.

Tim: Right.

Jon: What you’re going to do?

Tim: So it’s a really good time to take a step back and kind of put all your financial pieces in order.