Life Insurance and Creditors New Mexico NM
Reader’s Question:
I am a businessman here in New Mexico, and I recently filed for Chapter 11. I am wondering if my paid-up whole life insurance, which has accumulated cash value and dividends, will be subject to priority claims by my creditors?
Rodney
Rio Rancho, NM
Rodney, a brief thing about Chapter 11– it is there to be filed to give people in financial trouble like you a fresh start. You may be given complete or partial relief for most of your debts. Even though you filed for Chapter 11, it doesn’t mean that you don’t have to pay for your debts and other financial obligations anymore. Rodney, the good news is, your business will still be in control, and it’s still viable to run your business, but from then on, you will be subject to look-ins by the court. So, if it turns out that you have more debts than assets, then your creditors will try to squeeze out any asset or cash they can from you. Remember, you are not absolved from your debts, and that Chapter 11 simply allows you to reorganize, so you can pay everyone whenever you are able to in the future.
For your life insurance policy, well, I don’t think the creditors will be interested in that because your policy has an intended beneficiary. So, if anything happens to you, death benefits go to the beneficiary, who doesn’t owe anything to your creditors.
Rodney, I hope you can straighten this out. Should you want a good lawyer in New Mexico, send me your e-mail and I will send you some contact numbers.
Tags: life insurance, life insurance beneficiary, life insurance claims
Basic Types of Car Insurance New Mexico NM
Reader’s Question:
I just bought my first car, and I want to have it insured. I am quite uninformed about car insurance. What do I need to consider when insuring a car here in New Mexico?
Chrissie
Albuquerque, NM
Although New Mexico is located in a dessert, it has been witness to a growing population and a thriving economy. This steady increase in population means an increase in cars on the roads and makes it more important than ever to purchase a car insurance policy for your vehicle. It is a very good move then that you want to have your new car insured.
As in all states in America, New Mexico obligates its motorists to have financial responsibility over accidents they may cause from operating a motor vehicle. New Mexico requires its drivers to obtain at least the minimum liability insurance, which covers for damaged property and medical care following an accident where the insured was declared to be at fault. Minimum level of liability coverage in New Mexico is $25 thousand for medical costs for a single passenger in the car, and up to a total of $50 thousand for all passengers in the vehicle. Meanwhile, $10 thousand maximum is allotted to pay for damaged property, including the other driver’s car or any other public property.
Though not required, it is highly suggested to acquire the collision and comprehensive insurance. This will assist the insured financially if there are necessary repairs and/or medical care after a mishap.
Although New Mexico requires its drivers to have insurance, 24% of the total driver population in this state is actually uninsured. That is why it is wise to purchase the uninsured motorist insurance. This coverage gives you the right to obtain necessary financial assistance from your insurance company following an accident where an uninsured driver is found to be responsible.
Know all your options by calling different car insurance companies. Most give you quotes right over the phone. You can also check out the websites of car insurance providers in New Mexico.
Tags: auto insurance coverage, collision insurance coverage, comprehensive insurance coverage, First-Time Buyer, liability insurance
Pre-Need Life Insurance Policies New Mexico NM
Reader’s Question:
My grand father is looking into getting a life insurance policy here in New Mexico, are Pre-need life insurance products any good?
Anna
Rio Rancho, NM
First there is a need to differentiate between a life insurance policy and a Pre-need policy to avoid confusion. Life insurance generally takes care of an insured person’s debts, financial obligations or grants monetary benefits to beneficiaries should this person die within the policy’s coverage period. Pre-need life insurance, on the other hand, mostly deals with (but may not be limited to) funeral arrangements and expenses upon a person’s death.
Pre-need life insurance policies are good investments since it will save the surviving family members or relatives the burden of having to pay the dead person’s burial requirements, and may even grant the remaining amount of money left to designated beneficiaries if the Pre-need policy’s amount exceeds the costs incurred for the insured person’s funeral needs.
But is this what your grand-father in New Mexico wants? You or your grand-father would have to make sure that you pick a life insurance product that is based on his long-term financial goals or needs. If he is looking into getting long-term life insurance coverage that also increases the value of his money in the long run, or wanting family members to get a large sum of money when he passes away, then he may be more interested to get a Whole Life Insurance Policy. If he just wants to save other people the trouble of burying him then a Pre-need insurance package is the way to go.
Tags: life insurance for elderly, life insurance for seniors, life insurance advise, life insurance
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