By financen | September 24, 2019 - 6:21 pm - Posted in Insurance, Key Person Insurance

In 2017, the USA had nearly 6,000 insurance companies throughout the states, which makes it one of the largest markets alongside China and Japan. Albeit being one of the biggest insurance providers in the world, the discussion on life insurance policies in the USA is still met with a great divide. Some Americans think it is essential and there are still so many who think otherwise.

However, insurance policies not only cover a person’s health, but even businesses use insurance policies to protect the interest of the company and its employees. Such is the function of what is known as Key Person Life Insurance Policy.

What Is Key Person Insurance, and how does the Policy Work?

This insurance policy mainly focuses on the company’s interest by protecting vital employees. Most of the time, business owners are covered under this insurance policy. These key employees are given insurance for the time when they are unable to work for the company. This includes cases of death alongside other factors, and the necessary funds are shelled out by the policy to avoid loss.

The crucial step in this policy is the determination and selection of who should be the “key person.” Companies usually elect the owners, but there are also instances where high-level employees are selected. 

The company then pays the insurance of what is commonly known as “premium.” This premium serves as coverage for liabilities that may be incurred by the company in case of the key person’s death.

Unlike standard insurance policies, with a Key Person Life Insurance Policy, the company is the beneficiary which will receive the necessary funds. 

How a Key Person Insurance Helps Businesses

There is a reason why many companies opt to employ this type of insurance policy. While a business does good when the team functions well, employees who play a huge factor in keeping the company afloat are usually regarded as highly-valued.

As such, by protecting these employees, the company has a safety net to fall on, in case there are losses and liabilities incurred from an untimely death. 

For example, a high-level employee is a top-performing salesman who can close huge accounts. When he is covered under this policy, upon his death, the company’s loss in profit can be compensated through the plan. This will cushion the company’s loss caused by the early demise of a top salesman. 

Selecting the Key Person to Put under This Insurance Coverage

There are many factors to consider in selecting a key person. The following criteria should be considered.

  • If the work that they do is directly equivalent to the profit earned by the company.
  • If finding a replacement would be difficult or nearly impossible.
  • If the work provided by the employee is highly in-demand.

It is in every business’ interest to reduce loss and earn revenue as much as possible. That is why individual employees should be covered under this policy to protect the company’s benefit. Insurance policies are certainly one of the best ways to make business management less taxing and complicated. 

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By financen | September 3, 2019 - 4:47 am - Posted in Insurance, Life Insurance

Contrary to popular belief, you don’t need to start thinking about life insurance only when you are old. In fact, you should start thinking about life insurance much early on in your life. There are various types of policies available today that can you choose from. Life insurance is a financial product that is based on the consideration that no one knows what the future holds, and thus, being financially insured ensures the financial well-being of your dependents.

You wouldn’t want your family members and dependents to be in any kind of financial constraints in case something happens to you. If you are the only earning member in your family, then it only becomes more important for you to have an insurance policy with sufficient coverage for your dependents. Here are the few reasons why you need to buy a life insurance policy today:

Providing for your family

If your family is dependent on you financially, it is vital for you to be insured. It would mean that in case of your demise, your family would get sufficient finances to move on in their daily lives without any immediate financial constraints. Starting from paying for mortgages to children’s education to other living expenses, everything can be covered through life insurance.

Debt

If you buy the right insurance policy for yourself, it will become much easier for your family to pay off any outstanding loans and debt in your name. It includes home loans, auto loans, personal loans, and more. When you have the right kind of insurance policy that offers sufficient coverage, your family will be in a better position to pay off certain debts without any issues.

Achieve Long-Term Goals

Some insurance policies come with investment benefits, and it means that they would get you lump sum cash on maturity. If you have invested in such life insurance policies that come with maturity and investment benefits, it will help you achieve your long-term goals, like going on a world tour or buying a new home or a car.

Peace of Mind

One of the biggest reasons why so many people buy life insurance policies is for the peace of mind that it offers. When they know that their family wouldn’t be in any immediate financial danger in case something happens to them, they can rest assured. It also can help in reducing stress in your daily life, enabling you to focus on your job more efficiently.

Tax-Saving Purposes

Life insurance policies come with tax benefits, and the premium you pay towards the policies are tax-exempt. So, you need not worry about the liability because the proceeds of the insurance policy are also tax-free.

In businesses, there is a key person life insurance policy available which helps in ensuring the top management tier of the company or the leader, depending on the value of the person in the company. In case something happens to the person covered with the key person life insurance policy, the business gets the sum assured that helps them stay afloat and find a replacement.

Overall, it can be said that there are various types of life insurance policies available out there, starting from term life insurance policies to investment-linked life insurance plans and much more. You need to choose the one based on your lifestyle, income, number of dependents, and other factors in order to ensure that your family is financially covered in your absence.

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By financen | March 8, 2019 - 5:15 pm - Posted in Insurance

Insurance covers a number of situations. If you do not have homeowners or automobile insurance, it could be difficult to repair or replace your property if it becomes damaged. Insurance can also pay for expenses incurred due to accident or injury. Since there are so many different types of insurance and insurance companies, getting several quotes can help you make the right choice.

Quotes are Free

There are a variety of places that you can go to get insurance quotes. Some online sites even offer comparisons of policies from different insurance companies. Most conventional insurance companies offer quotes and explanations of what each policy covers. You may find that you are paying more for the exact coverage that you could have purchased elsewhere. One example of a company that offers insurance quotes lodi ca is Eugene C. Yates Insurance Agency.

If there is a particular company that you are considering, check to see if they have a website. Many insurance companies today have one, because there are so many that want your business. Their website may also have a live agent that you can chat with if you have any questions. Getting a quote for any type of insurance you need is easier than it was in the past when you had to drive from one location to another.

Already Have Insurance?

Even if you already have insurance, quotes can help. You may find a company that offers coverage equal to or better than what you have for less. Obtain quotes from at least three different companies so you can be certain you are getting a range of prices. More is better when it comes to savings. Just be sure to put the same information in every time so the quote you get is for the type of insurance you are seeking.

Shopping for policies is a good way to get an idea of what you will pay for homeowner’s, renters, vehicle, and health insurance as well as other types of insurance. It is particularly helpful for young people who may be buying their first home or vehicle.

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There are countless types of insurance coverage policies. For example, insurance companies have policies to protect individuals in the event that they lose a limb as a result of someone else assaulting them. The aforementioned coverage is highly specific. Since insurers are even willing to craft customized insurance coverage policies for clients, there are literally a number of insurance policy possibilities in the millions or billions. Further, most types of insurance coverage don’t cost very much and are well worth the money spent on them. After all, small businesses are better off spreading the weight of being forced to give away $100,000, for example, over several months or years than paying the entire amount in a lump sum.

Most Small Businesses Faced No Costly Incidents In The Past Year

According to a survey conducted by Insureon, roughly 65 percent of United States small businesses – roughly two-thirds of them – polled experienced zero major incidents at their places of work or that were linked to their entities’ operations or performance in the past year. However, since one-third of small businesses that were polled did, in fact, experience a costly incident in the previous 12 months, getting insurance coverage against major accidents is a good idea.

Clients Complain Too Often, Especially About Contracts

To be fair, the majority of clients only take businesses to court about contract disputes if they genuinely feel they were done wrong. Nearly one-fourth of businesses polled by Insureon were hit with contract disputes that went legal in the past year.

One In 10 Businesses’ Workers Got Injured

Workers’ compensation claims are far from cheap. Small businesses sometimes go out of business trying to pay them. As such, workers’ comp insurance is a great idea for small businesses, especially considering the fact that 10 percent of businesses polled had experienced such an issue in the previous year. Understanding what types of business insurance in Peoria AZ your business needs is difficult. You should always consult with professionals like our team members at Henderson Anderson Insurance to figure out the best ways to cover your entity in case something serious and seriously expensive happens.

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By financen | January 18, 2019 - 2:22 pm - Posted in Insurance, Life Insurance
Life Insurance

When you buy life insurance, it’s hard to determine how much you’ll need later on in life. Each year our lives can drastically change, causing us to review and rethink some of our expenses and insurances. Life insurance is one coverage that should evolve as you evolve.

Depending on your coverage, you may want to consider either increasing or decreasing your coverage according to where you’re at in life. There are certain signs to pay attention to that may tell you to reconsider what your life insurance policy is.

You Have Children

If you bought life insurance before you had kids, it might have been suitable for that moment in life. However, if later down the road you started to have children, your insurance may be outdated.

When we buy life insurance, it’s more for your family’s protection than anything. They would be the ones who utilize the death benefit if you passed away. If you have children, they’ll likely need more money to help cover costs and continue with life.

Your Health and Lifestyle Changes

Your lifestyle and health could be a sign that you need to either increase or decrease your insurance. The downfall, however, is that if your health declines, it will cost you more in monthly premiums. Americanterm.com has more information on how your health, like weight, affects your life insurance.

You Purchased a Home

If you recently moved into a new home, that is a good time to review your life insurance policy and consider increasing the death benefit. Moving into a new home can be expensive for quite some time. If you suddenly passed away, would your family be able to afford the mortgage and continue living there? Would they have to move out and look for something smaller?

The death benefit can help your family cover costs that your income used to help with. By increasing your coverage when you purchase a new home, you’re helping to guarantee that your family will continue to live in the family home.

Increase in Income

Have you gotten a raise recently? That is a good sign that you should look at increasing your life insurance policy.

Ask yourself this – would your family be able to live without your income? If the answer is no, you know that you need life insurance to cover the loss of the primary income. So, if you got a raise, you’ll want to increase the death benefit so that it matches you and your family’s lifestyle.

Fell Into Debt

Debt is one of the main reason why some families get life insurance. The death benefit could help cover the debt left behind a family member that passed away. Even though that family member is gone, the debt still has to get paid.

If you fell into debt recently, you may want to consider increasing your coverage for the time being. The more debt you have, the more that will fall on a family member if you suddenly passed away.

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Few homeowners understand the need for flood insurance. There are two reasons for this. The first is that they don’t live in an area that has floods, and the second reason is that they believe their current homeowners policy will cover flood damage. Let’s take a look at both of these thoughts.

My homeowners policy covers flooding:

Although your policy will likely cover water damage from a fire when the flames are put out, this is about as far as it goes. Any type of flooding from a natural disaster is not going to be covered with your policy. There is simply too much risk associated with flooding, so insurance companies will not pay out claims for this type of damage. You can look at your policy carefully, and you will find this to be true. In fact, even if you wanted to add it to your policy, your insurance provider will not do it. You need to buy a separate policy from a company that works with the National Flood Insurance Program. It is the government the runs this program because the private sector insurance companies will not provide it on their own.

I don’t live in a flood area:

Although certain areas of the country are more prone to flooding than others, flooding can occur anywhere. Flooding is unpredictable, and this is the main reason insurance companies will not touch this type of insurance. Deserts have flash flooding, hurricanes produce flooding, and storms can be found everywhere that cause flooding. Never assume that you live in a flood-free zone. It is true that certain areas are less likely to have flooding, and your premiums will reflect this, but you need to have a flood insurance policy. Do not wait to buy insurance. The longer you put it off, the better the odds are that you will regret it. Damage from flooding can be costly, and you may not have the money for cleanup and repairs when it occurs.

Again, it is the government that runs the flood insurance program, but you purchase this insurance through government approved insurance agents. There are several flood insurance orlando fl agents that can provide you with a quote.

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By financen | December 4, 2017 - 5:17 pm - Posted in Insurance

Part of being an adult is getting insurance. Many adults have health insurance, life insurance, and car insurance. Insurance is expensive, especially when you’re paying for multiple policies, but homeowners should really consider getting even more.

Homeowners insurance may be required of you if you buy a house (usually unless you pay for the house with cash). This will keep you from being destitute if you house is damaged or destroyed in the most common ways. But this is not the only insurance type that you could benefit from. In fact, there are some forms of insurance which you may notice the benefit of even more than your homeowners insurance policy. Here are three.

Home Warranty – Not often thought of as an insurance type per se, home warranties have all the basic earmarks of insurance: coverage of certain things in your home, specific term limits, and a deductible to be paid every time you use it. Home warranties are often made available to people when they buy their home. The warranty will cover things like appliances. If one breaks, you can just call up the home warranty company, and they’ll send someone over to repair or replace it, usually for a deductible of around $100. If you use your home warranty even once or twice a year, the policy will probably pay for itself. What’s more, you can renew the warranty indefinitely, which is a major boon to people who own aging houses in the long term.

Life Insurance – There’s nothing that makes you feel like an adult more than buying life insurance. The best life insurance companies offer peace of mind for you and security for the people in life that mean the most to you. Life insurance is very handy if there is a mortgage that depends on your income. If you were to unfortunately pass away unexpectedly, then the mortgage might go unpaid and your family might lose the house. If for no other reason, get life insurance because you are a homeowner, but also consider the other many benefits life insurance offers to an individual with loved ones and/or dependents.

Interior and Exterior Line Coverage – If you live in a municipality, chances are you are responsible for the underground water pipes that extend from your home’s exterior to the street. In many cities, these water pipes are old and brittle. Trees roots can go through them. Erosion can expose them. Rust can wear them away. If such a pipe breaks, it can be thousands of dollars to have the thing dug up and replaced. Don’t risk thousands of dollars on a simple catastrophe that is almost certain to happen at some time in the future. At only a few dollars a month, this could save you big down the road. Interior line coverage is also available, but your home warranty may cover this if you have one.

Being a homeowner brings many responsibilities into your life. Consider these three forms of insurance so that you can handle your responsibilities in the best way possible no matter what happens.

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