Archives for July 2018
You name a beneficiary when you purchase a life insurance policy. This designation lets the insurance company know who should receive the proceeds of the policy. Keeping your beneficiary designation current is key to ensuring your life insurance benefits are paid as you desire. By not updating your beneficiary designation, your benefits may go to your estate instead of to those who need it the most.
When life circumstances change, be sure to review and verify your life insurance beneficiary designation. When should you review beneficiary designations? Here are a few situations to consider:
Summer is officially here, and if you’re like me, you can’t wait to get on the road and go on some adventures! There’s nothing more enjoyable than good company, good food and an open road with endless possibilities.
If you’re traveling in an RV, you have the benefit of more convenience! You now have a kitchen, shower, bathrooms and bedrooms. It definitely saves money on hotels, and may save you time on stops along the way too. But, just like any trip, your RV vacation can go sour very quickly if you ignore certain safety precautions and regular maintenance. According to the National Fire Protection Association (NFPA), an estimated 20,000 RV fires happen every year.⚹ That’s a scary number to consider. The good news is, most RV fires are preventable!
Before you hit the road, read these fire prevention safety tips so you can have a worry-free trip with your family and friends!
Before sending your children out to play, be mindful of the liability they can present.
In many cases, your homeowner insurance covers damage to your neighbor’s property if your son or daughter is legally liable, and your liability coverage – whether through your homeowner insurance or a personal umbrella policy – may respond if someone is injured on your property.
It’s always a good idea to keep track of where your children are playing and who is playing in your yard. If an injury occurs on your property, you could be liable for the medical expenses and other damages. You will want to make sure you have taken all the measures necessary to prevent injuries and to protect yourself financially with insurance.
Don’t overlook the liability that scooters and battery-powered toy vehicles can present. If your child injures someone or causes property damage while operating a toy vehicle, not all homeowner policies provide coverage. Reviewing your policies with a professional independent agent will help ensure you are adequately covered.
Most business owners know they need one; however, I still meet with business owners weekly who do not have a formal business continuation plan in place. Owners can be most prepared for the futures of their firms by consulting with attorneys to draft buy-sell agreements.
The next step is to consider ways to fund the agreement and avoid unintentional tax consequences. When set up correctly, life insurance is an economical way of funding buy-sell agreements. At pennies on the dollar of coverage, it’s usually affordable and practical, but there are pitfalls on the way to a successful continuation plan.
Let’s explore six topics business owners need to understand to help them avoid the mistakes commonly made related to using life insurance to fund business continuity:
You made it! You turned your passion into a going concern. Maybe you turned your sewing hobby into an alterations business. Or perhaps you left corporate bookkeeping to strike out on your own. Congratulations on your successful, home-based business.
Now are you willing to bet your house on it?
That’s what you might be doing if you aren’t properly insured. Standard homeowner policies generally don’t cover business-related losses. According to the U.S. Small Business Administration, more than half of all U.S. businesses are based out of an owner’s home.
If you’re one of these business owners, a review of your situation may reveal that you need coverage for:
Sometimes sewer backups happen. We look for someone to blame, but often there just isn’t blame to be found. How do we prevent it from happening? And if it does, how do we protect ourselves from the financial storm that follows?
Suppose for a minute that you just spent $10,000 converting an unfinished basement into your awesome new recreation room. Somehow, the sewage backup that occurred three weeks later, ruining your new carpet, furniture and recently installed drywall didn’t factor into your vision of awesomeness. What a horrible, stench-filled mess. You’re disgusted, angry and someone’s going to have to pay for this affront. Wait until you find out that someone is you.
Good benefits can increase employee satisfaction. If you are an employer, providing valuable benefits that can be paid via payroll deduction can give you an edge when trying to attract and retain workers. Life insurance is one benefit you can offer in the workplace at a reasonable cost.
But as you consider offering life insurance, you may ask: How much coverage is needed? What about protection for family members?
According to LIMRA, a leading insurance and financial services trade organization, millions of Americans have no life insurance coverage other than the employee group term life insurance offered by their employers. Group life insurance plans usually include a cost to the employer, offer limited coverage options for the employees, and are not portable if an employee leaves the company. And, since these plans cover employees only, an even greater number of people have no coverage for their spouses or dependent children.
The Fourth of July has become a day full of family, friends and celebrating the land of the free. Whether you are hosting a gathering or are a guest, make sure everyone’s safety is your No. 1 priority. Remember these tips from the Consumer Product Safety Commission as July 4 approaches, or any time you are dealing with fireworks.