Why You Need an Umbrella Insurance Policy
An umbrella policy typically covers the same things as your home and auto policies, plus a few more, including lawsuits that arise when you’re driving abroad or operating rented watercraft, or from alleged libel, slander or defamation of character. Umbrella coverage picks up where the liability limits of your homeowners and auto policies leave off. It’s usually sold in increments of $1 million . A policy typically costs $300to $500 a year for the first $1 million of coverage, and about $100 for every million after that.
Before most insurers will sell you an umbrella policy, you usually must buy your homeowners or auto policy from them and carry a minimum amount of liability coverage—typically $300,000 on your homeowners policy and, on your auto insurance, $250,000 for bodily injury to one person and $500,000 per accident.
Umbrella policies provide another layer of protection for your assets and are especially important if you own a business, have teenage drivers, or have a swimming pool or trampoline on your property.
In 2019, the IRS will allow you to save more for retirement than in prior years.
The IRS announced that the limit on elective deferral for contributions to 401(k) plans, 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan will increase from $18,500 in 2018 to $19,000 for 2019. However, the catch-up contribution limit for those 50 and older remains $6,000 (Notice 2018-83).
In addition, the limits for individual retirement accounts have also been bumped up for the first time since 2013.
In 2019, you will be able to save up to $6,000 in your IRA, up from $5,500 in 2018.
If you are 50 and over and looking to make up for lost time, catch-up contribution limits will remain the same for 2019. For IRAs, you can put in an additional $1,000.
Source: IRS COLA Increases for Dollar Limitations on Benefits and Contributions