Tag Archives: Umbrella Policy

PLUP – The Personal Liability Umbrella Policy – A Savior if you need it, especially for the cost

Insurance can be a costly word to many, but in this post we discuss in an abbreviated form from our coming Newsletter, the  PLUP – You may not want to leave home without it!

Personal Liability Umbrella Policy – AKA PLUPinsurance -slip-up-709045__340

This coverage is an add-on to your auto or homeowners policy. This coverage kicks in as a pseudo major medical similar upper limit coverage for liability should you need the extra protection. Given the cost, it is easy to see this coverage is not utilized frequently, but had the personal experience above been slightly different, maximum limits could have easily been met, needing the Umbrella for continued asset protection.


In a world of sometimes seemingly ever higher costs, the PLUP is very affordable. Experiences have shown annually, cost of usually between $200 – $500 for $1 Million – $2 Million in coverage. (Yes that is correct, two to five hundred dollars annually.)

Insures your base Coverage are correct

Another neat and settling feature of the PLUP is that it mandates that your standard or base coverage are correct. The reason for this is that the Umbrella Policy actually sits on top of your standard coverage, again similar to a major medical policy sitting on top of your standard health coverage, to only kick in when the base coverage are maxed out. 

What you are protecting Coverage

The most obvious assets at risk are after tax dollars such as checking, savings and investments including Revocable Trusts. In a bad situation, without the PLOP policy these assets may be at risk in the event of a liability judgement is made on you.

Accident Examples

The crazy accident at your home, where an acquaintance falls down unexpectedly and injures themselves badly and you later find out that this acquaintance is not so friendly and has a desire to hold you accountable for their incident.

Those with kids that may have kid friends over and a similar occurrence from above happens.

Anyone who drives the streets today has some possible liability. As mentioned in our personal opener, the outcome of the personal situation could have been much different.

Watch for a more detailed article in our coming Newsletter, meanwhile, if you do not have a PLUP, you may want to call your insurance agent and check into it!

Have a Great “PLUP” Covered Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


January 2014 Financial and Economic Review Plus an all New Monthly Financial Planning Tip (Video)

Confidence left the capital markets with one possibly outlier economic report this month. While many have pointed to the Emerging Market Economies, looking closer we can see cross currents beginning at a different point and time.

January 2014 Video By John A. Kvale


Click here if all else fails

Vimeo Link

Break In — An All New monthly Financial planning Tip

After reviewing the HEAVY material from our most recent Q 1 2014 Newsletter and our recent monthly review video’s we have decided to insert a Financial Planning tip of the month. This tip will come from the trenches of recent questions and we hope to break up the monotony of the heavy material, we financial Nerds get so excited about. So here is our first hot tip.

The Personal Umbrella Policy

If you have any liabilities that may expose assets to bad people, you need a Personal Umbrella Policy.

An Umbrella Policy has the following characteristic:

  • Most commonly added to your homeowners policy
  • Inexpensive (Hundreds of dollars annually, not thousands)
  • Implementing an Umbrella policy confirms other policies are appropriate (Underlying liability coverage must be in place prior to adding an Umbrella policy)
  • Kicks in when trouble arises (Once other coverage is exhausted, the Umbrella begins)

For the annual price tag, the peace of mind this policy will give makes it well worth it most cases.  Ok … On to our regular monthly review.

the Non-Farm Payroll Bomb

With a consensus expectation of 200,000 new hires for the month of December, a print of 74,000 was where it all started.

Non Farm Payroll 1-10-14 Econoday

Recall the polar vortex we have all experienced. While the numbers are not SUPPOSED to reflect this, actions speak louder than words. This may be a one time event. Next Friday, February 7, 2014 we will get the January report, which will be very important. We will be watching closely.


There are many sayings on Wall Street, often comparing Bond guys (can see their thoughts through interest rates) to Equity guys (can see their beliefs via Dow, S&P) most of which make fun of each other.

Interest rates are saying there is a problem. The FOMC is reeling in stimulus which should allow rates to rise, however they are falling. Bonds (bond investors) are saying we are heading into a serious slowdown. Equity markets ignored much of this until lately and then the many headlines blamed Emerging Market Currency fluctuations.

The peak in rates from this chart, directly co-insides to the above mentioned Non- Farm Payroll report. Right or wrong, it is pretty easy to see now in hindsight what started making equity markets nervous.

10 Year Treasury 1-31-14

There is a tug – of – war going on between Bond guys (feeling scared/negative) and Equity guys (feeling a slight slow) which only time will tell who is correct.

John Kvale CFA, CFP

8222 Douglas Ave # 590
Dallas, TX 75225

Q 3 2011 J.K. Financial, Inc. Newsletter Available

Q3 2011 Newsletter

The Electronic Version or our Q 3 2011 Newsletter is now posted in the Newsletter Section of our Website.

For Clients and requested readers, the paper copy is coming soon to your mailbox.

A few highlights in this Quarter’s Newsletter:

Our Lead Article, the Put Option, our continued Multipart Option Series, discusses in great detail the put option and it’s Fire Insurance Similarities.

An interesting research article on large market movements as they relate to mature markets article. (Due to space limitations of the Newsletter this article is slightly abbreviated, see the Research Section of our Website for the full version of the article, including graphs.)

A foundation of basic Financial Planning article on the important yet Under-Utilized Umbrella Policy.

A short closing story of a dead cell phone, and updates and enhancements to our Quarterly Performance Report.

Have a Great Day!