Archives: 2020

Beginner’s Guide To Choosing A Beneficiary

If you have a life insurance policy, your beneficiary is the person who will receive the benefits in the event of your death. For obvious reasons, choosing a beneficiary is an important step in the process of obtaining life insurance. If you are new to the process, the following tips can help.

Consider the Purpose of the Policy

You are buying life insurance for a reason. It may be to provide for your family in the event of your death. In that case, the most likely beneficiary is your spouse. You may have poured your heart and soul into a business and want it to continue after you’re gone, in which case your business partner may be the best beneficiary. The proper person to name as your life insurance beneficiary will depend on your purpose for buying the policy.

Look at All Your Options

You are not limited to your spouse or children as beneficiaries on your life insurance policy. You could name a friend, a significant other, a godchild, a charitable organization, a trust, your estate, or more than one person to split the benefits as you decide. However, if you are married and live in a community property state, your spouse will have to waive his or her rights before you can designate another life insurance beneficiary. This is because the nine community property states require equal distribution of assets acquired during a marriage. Our experienced agent will be happy to advise you on your options.

Choose a Secondary Beneficiary

You are buying life insurance to benefit someone else in case something happens to you. But something could happen to your beneficiary as well. For example, husbands and wives sometimes die in the same accident. You name one or more primary beneficiaries of your life insurance policy.

This person or persons will receive death benefits when the insurance company pays out. You should also name one or more secondary beneficiaries in case the primary beneficiaries are deceased, cannot be located, or refuse the insurance proceeds for some reason. Naming secondary beneficiaries give you a backup plan and greater control of where your death benefits go.

Do Not Designate a Minor as Beneficiary

Legally, minor children cannot receive life insurance proceeds directly. If you named a minor child as beneficiary on your life insurance policy, in the event of your death, the court would appoint a legal guardian who would determine how the death benefits would be managed and spent. This may not be in accordance with your wishes. A much better option is to set up a trust for your child, name the trust as the beneficiary, and choose someone you can count on to serve as trustee and manage the funds for your child.

Keep Beneficiaries Up to Date

If you marry or divorce, or if your child reaches adulthood, you may want to change the beneficiaries on your life insurance policy. Most people would not want their life insurance proceeds to go to an ex-spouse simply because of an oversight.

Do I Need More Than Just General Liability Insurance?

General liability insurance is essential for many types of businesses. This coverage is particularly critical if your business is open to the public, rents or owns commercial property, works closely with clients or customers, or handles client property. Most new business owners buy a general liability insurance policy right away. However, it is not the only business insurance you are likely to need.

What Is Covered by General Liability Insurance?

Most business enterprises have some exposure to liability. General liability insurance can help protect your business from third-party lawsuits for bodily injury, property damage, or advertising injuries, such as libel or slander. It can also protect against product liability lawsuits, in which a consumer claims to have been injured by a product. A general liability policy can cover the cost of your legal defense and any settlements or judgments if a third party sues you.

What Additional Coverages May Be Needed?

Other types of insurance coverage may also be vital to the future of your business. Our knowledgeable agent can work with you to design an affordable business insurance package that provides the protection you need. New business owners commonly purchase the following types of insurance.

Workers’ Compensation

General liability insurance covers claims made by third parties, not employees. Employers in most states are required to carry workers’ compensation insurance. This coverage pays for medical expenses and lost wages if an employee is injured on the job. It also helps protect business owners from employee lawsuits based on work-related illnesses or injuries.

Errors & Omissions (E&O)

Any business that provides a service or offers advice needs E&O insurance. This includes, but is not limited to:

• Lawyers
• Architects
• Engineers
• Accountants
• Insurance agents
• Real estate agents
• Financial advisors
• Consultants
• IT companies

Also known as malpractice insurance, Errors & Omissions coverage helps protect your business against liability for injury a third party alleges was caused by something you said or did, or failed to say or do.

Commercial Property

General liability insurance will not cover damage to your business property caused by fire, explosions, theft, vandalism, or natural disasters such as hail storms or hurricanes. For these risks, you need commercial property insurance. This type of policy typically covers your building and everything in it, including computers, furniture, equipment, documents, and inventory, in addition to exterior signs, fences, and landscaping. It may also pay for damage to someone else’s property caused by a covered peril.

Employment Practices Liability Insurance (EPLI)

If your business has employees, you probably need Employment Practices Liability Insurance. Employee discrimination lawsuits are more common than ever today. This insurance can help cover your legal defense and any settlements or judgments if you are sued by an applicant, employee, or former employee who is accusing your company of discrimination or harassment.

Commercial Auto

Generally, personal car insurance policies will not cover accidents that occur while a vehicle is being used for business purposes. If your business has company-owned vehicles, or if it uses personally-owned vehicles to conduct business, you need a commercial auto insurance policy.

Avoid Common Home Accidents During The Holiday Season

From late November to mid-January, the holidays bring good cheer and gatherings with friends and family. They are also a season when home accidents frequently occur. The following are some common holiday-related accidents, along with tips to help keep your family safe at home over the holiday season.

Decorating Fall Accidents

You may be surprised to learn how many people are injured while decorating their homes for the holidays. The Centers for Disease Control and Prevention (CDC) reports that, over three winter holiday seasons, an estimated 17,465 people were treated in emergency rooms for fall injuries related to holiday decorating.

Approximate 43% of these falls were from ladders, many of which occurred while stringing or removing outdoor lights. People decorating for the holidays have also fallen from furniture, stairs, porches, and roofs, or have tripped and fallen on tree skirts, extension cords, or other holiday decorating gear.

To help prevent holiday decorating fall accidents:

• Use a sturdy, dependable ladder on a level surface.
• Make sure step ladders are fully opened and locked.
• Move the ladder instead of overreaching.
• Place the bottom of the ladder one foot from the wall for every four feet in height.
• Have another person standing by to assist you while stringing lights and exterior ornaments.

Fires During the Holiday Season

According to the Consumer Product Safety Commission (CPSC), there were 100 fires started by Christmas trees and 1200 fires started by candles in a recent two-year period in the U.S., to say nothing of common cooking-related fires. To help reduce the risk of fire over the holidays:

• Make sure to follow all proper safety precautions if you choose to deep-fry your Thanksgiving turkey.
• Check for freshness when buying a live Christmas tree. The tree should be green, and the bottom should be sticky with resin. When tapped on the ground, the tree should not lose many needles. The needles should be difficult to pull from the branches and should not break when you bend them between your fingers.
• Place your Christmas tree away from heat sources.
• Make sure the tree is supplied with water at all times.
• Look for the “Fire Resistant” label when buying an artificial tree.
• Keep candles on a stable, heat-resistant surface, well away from flammable items.
• Keep all burning candles in sight. If you are leaving the room, extinguish candles first. Flameless LED candles are far safer. If you enjoy candle scent, you have alternatives to candles.
• Use only lights that have been safety tested by a nationally-recognized lab.
• Check each set of lights for frayed wires, loose connections, and cracked or broken sockets. Discard any damaged sets.

Slip and Fall Accidents

A white holiday season may be beautiful, but snow and ice on walkways can be treacherous. Depending on the circumstances and state laws, it could also leave you open to liability. Slip and fall accidents can cause serious injuries, including head trauma, fractured bones, strains, sprains, and dislocations. To help keep family and visitors safe on your property, shovel snow from walkways and use ice melt to reduce the risk of slip and falls.

Make sure you have the right home insurance to protect you from loss in case of a fire and from liability in the chance that another person could be injured on your property. Our friendly agent can help you get the best quote on a homeowners insurance policy to match your needs and budget.

Is It Better To Get Life Insurance Through My Workplace Or Independently?

Life insurance is part of the benefits package many employers offer their employees. This coverage can also be purchased independently. Buying life insurance through an employer can have both advantages and disadvantages for the policyholder.

Pros and Cons of Getting Life Insurance Through the Workplace

Pros

Many employers offer a small amount of life insurance, known as basic group life, as a benefit to their employees. This coverage is free and guaranteed. You only need to sign up for it, or enrollment may be automatic. Typically, coverage under a basic group life insurance policy only amounts to $25,000, $50,000, or the employee’s annual salary rounded to the nearest $1,000. In many cases, employees have the option to purchase supplemental group life insurance, with coverage that could amount to three to four times their annual salary. There are several advantages to buying this type of life insurance:

• Convenience: Many people would like to purchase life insurance to protect their families, but haven’t yet gone through the process. Buying supplemental coverage through the workplace is an easy way to get this done.
• Affordability: Supplemental group life insurance may be available at lower rates than you could find if you shopped around independently.
  Acceptance: If you have a medical condition, it could significantly affect your life insurance rates. You may qualify for much better rates through a group policy. You may have to fill out a questionnaire, but typically, a medical exam is not required.

Cons

Along with the advantages, there are certain disadvantages to tying your life insurance to your employer:

• Career changes: Most people do not stay with one employer for their entire career. If you leave your job, your group life insurance policy does not travel with you. You may be able to convert it to individual life insurance, but the cost could be significantly higher. Group life insurance may not be a benefit your next employer offers. In that case, you have the option to shop for an individual policy, but the older you get, the more the rates go up, and you could develop a medical condition in the meantime.
• Limited coverage: You may need more life insurance than you can purchase through the workplace. If that is the case, you can buy regular term life insurance in addition to or instead of supplemental group life insurance.
• Limited policy options: You will not have the full range of policy options if you buy life insurance through your employer. However, most employers offer term life insurance, which is more affordable and the best choice for many people. If you want whole life insurance, our agent can help you find a policy that suits your needs.

Which Way to Go?

If you can buy life insurance independently at comparable or slightly higher rates than the supplemental coverage available through work, that is probably the better option because of its portability. On the other hand, if you have a medical condition and may not qualify for affordable rates individually, supplemental group life insurance may be the best way to go. Consult with our friendly agent for guidance on this crucial issue.

Is My Event Big Enough For Special Event Insurance?

Special event insurance is not only for large events. This coverage is designed to protect you, the event holder, from liability, whether you are hosting a small wedding or a large company retreat. Coverage applies to third-party claims for bodily injury or property damage sustained during the event. Some special event insurance policies also provide cancellation coverage to reimburse you for lost deposits or other expenses that could be incurred if the event was canceled or postponed.

What Are the Reasons to Buy Special Event Insurance?

Liability

It is always a good policy to plan for the best outcome and prepare for the worst. Despite your careful planning, things can go wrong at an event of any size. Employees you hire to work your event or guests may accidentally cause injury or property damage to others. If alcohol is served at your event, a guest may become intoxicated and cause problems, such as exhibiting aggressive behavior. Special event insurance can cover medical expenses resulting from an injury that occurs during the event or damage to property caused by someone you hired. Some of the possible hazards at a special event include:

• Slip and fall accidents
• Fights between attendees
• Collapsing structures that cause injury
• Auto accidents caused by intoxicated guests
• Fires or damage to property caused by employees

Venue Requirement

Many venue owners will not rent to you without proof of liability insurance. You will need to show your Certificate of Insurance to the facility. Depending on the venue, you may also be asked to add the facility as an additional insured to your policy. This is a common requirement for many venues.

Cancellation Protection

Most special events proceed as planned, but in some cases, they have to be canceled or postponed due to circumstances beyond your control. The cancellation could be due to severe weather, such as a hurricane or tornado, a fire at the venue, or a key speaker or performer’s failure to appear. A wedding might be postponed due to an unexpected illness of the bride or groom or an immediate family member, or even military deployment. Event cancellation insurance can reimburse you for deposits made to vendors (venue, caterer, band, florist, etc.) and help reduce your losses.

What Is Not Covered by Special Event Insurance?

Special event insurance policies restrict coverage to the specific date and event described in the endorsement. They generally exclude activities involving:

• Fireworks
• Firearms
• Trampolines
• Ski jumping or other aerial maneuvers
• Rodeo events
• Amusement equipment

Certain events may be subject to additional exclusions and limitations.

How Much Does Special Event Insurance Cost?

The cost of special event insurance will depend on the type and size of the event and who is purchasing the policy. Basic, one-day insurance for a small event could start as low as $100 and increase from there, based on several factors. If you are planning a special event, our knowledgeable agent can help you find the insurance coverage you need to protect your investment and shield you from liability at the lowest available rates.

What Happens If I Get In A Wreck With An Uninsured Driver?

Most states have mandatory minimum auto insurance laws, but some people still drive without the required coverage. The Insurance Information Institute (III) reports that in a recent study, 13%, or one in eight drivers in the U.S. is operating a vehicle without insurance. Many such drivers cannot afford the cost of car insurance, which makes it difficult to collect damages after an accident. Fortunately, there are ways to protect yourself if you have been involved in a wreck with an uninsured driver.

Uninsured Motorist Coverage

Uninsured motorist protection is a type of auto insurance designed to protect you if a driver without insurance causes a car collision. Hit and run accidents are also covered. This coverage is optional in most states but required in others. If the driver who caused the crash has no car insurance, your uninsured motorist coverage will kick in to cover your damages, up to your policy limits.

Underinsured Motorist Coverage

Even if a driver is carrying the minimum liability auto insurance, it may not be enough to cover your losses. In many states, mandatory minimum financial responsibility limits for bodily injury and property damage are as low as:

• $25,000 per person bodily injury
• $50,000 per accident bodily injury
• $25,000 property damage

Medical expenses for injuries sustained in a serious accident can run far more than $25,000. The average cost of a new vehicle in 2020 is $37,851, according to the Kelley Blue Book.

Underinsured motorist coverage provides you with added protection in case the policy limits of the driver who caused the accident does not fully cover your losses. If you are in an accident with an underinsured driver, you need to file a claim with the at-fault driver’s insurance company and inform your own auto insurance provider. If you receive inadequate reimbursement from the other driver’s insurance company, your underinsured motorist coverage can pay the difference, up to your policy limits.

How Much Uninsured/Underinsured Motorist Coverage Do I Need?

Coverage levels for uninsured/underinsured motorist insurance can vary widely. Some insurance companies may limit you to coverage no greater than your other liability limits. In general, it is wise to have the same amount of uninsured motorist coverage as you have for bodily injury.

Uninsured motorist insurance may be available as a split limit policy, or, in some states, as a combined single limit policy. Split limit policies have separate limits for bodily injury and property damage. For example, an uninsured motorist plan may cover $50,000 bodily injury per person, $100,000 bodily injury per accident and $25,000 for property damage. In a combined single limit policy, one coverage level ($100,000, for example) applies to both bodily injury and property damage.

How Much Does Uninsured/Underinsured Motorist Coverage Cost?

The average cost of uninsured/underinsured motorist coverage is approximately 5% of annual auto insurance premiums. Various factors can affect the price of this type of insurance, including driving record, previous claims, and policy discounts. Our experienced agent can help you find the best rates for the uninsured motorist protection you need.

What Do I Need To Do Before Buying Life Insurance?

Buying life insurance is an important financial decision. Not only can it help protect the loved ones who depend on you, but it can also serve as a useful financial tool. To help ensure you make the right decision, take the following steps before shopping for a life insurance policy.

Determine How Much Life Insurance You Need

How much will be needed in death benefits to cover expenses left behind if something should happen to you? The DIME method is often used to calculate life insurance needs:

• D = Debt (student loans, credit cards, car loans, mortgage, etc.)
• I = Income replacement (how long your income will need to be replaced to protect your loved ones)
• M = Mortality (your funeral and burial expenses)
• E = Education (funds needed for dependents’ education or childcare)

Decide the Length of Time You Need Life Insurance Coverage

You can either purchase term life insurance or permanent (whole) life insurance. Term policies expire after a certain length of time. A whole life insurance policy continues until your death but costs more than term life insurance. If you only want coverage while you are paying off your mortgage or raising your children, term life insurance may be your best option. On the other hand, if you want coverage for the remainder of your life, whole life insurance is the best choice.

Consider Your Other Financial Objectives

Whole life insurance offers advantages in addition to death benefits. It can serve as a type of savings account. A permanent life insurance policy accrues cash value that increases over time on a tax-deferred basis, similar to a retirement plan. This type of life insurance can play an important role in your long-term financial planning.

Make Sure You Can Afford the Premiums

For a life insurance policy to remain in effect, you must continue paying your premiums. Only purchase a policy you can afford. If you should stop making your payments for any reason, the money invested up to that point would be money lost, with no benefit.

Name a Beneficiary for Your Policy

The person named as the beneficiary on your life insurance policy is the person who will receive the proceeds in the event of your death. This is an important decision, and our agent will be happy to advise you. Do not name your minor children — minors are not legally able to receive funds. For tax purposes, you may not want to name your estate as the beneficiary.

Speak with a Knowledgeable Agent

Purchasing a life insurance policy is a big step that can impact your financial future. It is important to shop for the coverage you need at the best available rates. It is also important not to delay, as the older you are when you purchase life insurance, the fewer your options and the higher your rates are likely to be. Our experienced agent can advise you on your choices and help you find the best quote for the life insurance coverage you need.

7 Things To Consider When Buying A Pickup Truck

What do America’s top three best-selling vehicles have in common? They’re all pickup trucks. It’s no secret that the U.S. has long been a truck-loving nation. But as automakers refine the ride and handling of pickups, more drivers are starting to see them as the jack-of-all-trades. After all, no other vehicle can boast the space […]

Beginner’s Guide To Workers’ Comp Insurance

If you are an employee who has been injured on the job, you are most likely eligible to collect workers’ compensation benefits. The following questions and answers provide some basic information about the workers’ comp claims process, and the benefits you may be entitled to receive. Our friendly agent is also happy to help.

What Types of Injuries Are Covered By Workers’ Comp

Workers’ compensation insurance covers only work-related injuries. The injury or illness must have been sustained in the course of your employment. If you have clocked out for the day and you are involved in a traffic accident on your way home, workers’ comp will not cover your injuries. If you trip and fall in the workplace, break your arm, or sustain another injury while performing the duties of your employment, you should be entitled to workers’ compensation benefits.

What If I’m At Fault for the Accident that Caused My Injuries?

Workers’ comp is a no-fault system. Even if your injuries resulted in part from your own failure to take the necessary safety precautions, you are still entitled to benefits in most cases. In return, you are precluded from suing your employer for injuries covered by workers’ comp insurance.

What Benefits Are Provided By Workers’ Comp?

After an on-the-job injury or illness, workers’ comp will pay for your medical care related to the injury and replace a portion of the wages lost as a result of your injury. Typically, wage replacement amounts to approximately two-thirds of the worker’s average wages, up to a specific fixed limit. Benefits may also include:

• Compensation for any permanent disability
• Occupational rehabilitation or retraining if your injuries prevent you from returning to your previous position
• Survivor benefits for families of workers killed on the job

How Do I Apply for Workers’ Compensation Benefits?

The workers’ compensation claims process may vary somewhat from state to state. Generally, to collect workers’ comp benefits, you must notify your employer and the workers’ comp insurance carrier of your illness or injuries.

Ensure you have the necessary medical treatment right away. Then notify your employer in writing, complete an official claim form, and keep detailed records of your treatment. Make sure to notify your employer and file your claim within the required time frame, which can vary from state to state.

Are My Workers’ Compensation Payments Taxable Income?

In most cases, workers’ comp payments for wage replacement or permanent disability are not subject to state or federal taxes. However, a portion of this money may be taxable if you are also receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).

What If My Workers’ Comp Claim is Denied?

If you file a claim for workers’ compensation benefits and your claim is denied, you still have recourse. The reason for denial should be explained in the denial letter. If you feel your claim was incorrectly denied, you may appeal the decision through your state’s workers’ compensation board. Common reasons given for denial include:

• Insufficient evidence that the injury is work-related
• Employer is disputing the claim
• No medical treatment was received
• Injury was not reported to the employer within the specified time limit
• Claim for benefits was not filed before the deadline

How To Know When Your New Car Needs A Tune-Up

Modern cars do not generally require a tune-up in the traditional sense. Engine parts are designed to last longer, and new cars don’t have the same components that needed to be adjusted or replaced in the past. Nevertheless, modern vehicles require regular maintenance. The following are signs that your new car is ready for a trip to the mechanic.

A Light on the Dashboard Comes On

Warning lights on your dash come on to alert you that something in your engine needs attention. Although the issue may not be serious when the light comes on, it could become a serious problem or safety risk if not resolved promptly. Check your owner’s manual or search online to find out what the light indicates, and contact your mechanic to schedule service.

Your Gas Mileage Decreases

It is a good idea to keep track of your gas mileage. To do this, record the mileage every time you fill up, then reset the counter. If you notice you are not able to go as far on a tank of gas as you did when you first acquired your new car, it may be time for routine service, including an inspection for any underlying problems that could be decreasing fuel efficiency.

Your Car Is Making Unusual Noises

When you first get a new car, it doesn’t take long to become accustomed to the sounds it makes. If you hear an unusual noise, it could be a sign that something is wrong. A checkup performed by a trained mechanic can reveal what is causing the noise, so it can be adjusted or repaired before it develops into a bigger problem.

You Feel Unusual Vibrations

Your car should not be vibrating while you are driving on a smooth, paved road surface. Whether you feel the vibration in the seat or in the steering wheel, and whether it is always there or only at certain speeds, it is an indication that something is wrong with the vehicle. It could be a problem with the tires or alignment, or an internal problem with the vehicle. In either case, if your car is vibrating, it is time to see your mechanic.

Your Vehicle Has Less Pickup

When your car is lacking pickup, it can cause performance problems (for example, when you are merging with traffic or traveling uphill). If the vehicle is not accelerating properly, it may be a sign of a problem that should be resolved as quickly as possible.

The Engine Misfires

Misfiring means a loss of power to the vehicle. It has several possible causes, including fuel system problems, faulty ignition, and engine defects. If your car misfires, schedule a maintenance appointment as soon as possible.

Protect Your New Car Investment with the Right Auto Insurance

New cars today are built to last and require a substantial investment. It makes sense to protect your investment with the right car insurance policy. Our knowledgeable agent can help you find the auto insurance coverage you need at the best available rates.