What are the
benefits of Business Owners Insurance?
Commercial insurance is designed to help protect many of the risks
your business can face, including
-damage or destruction to your business vehicles
-certain liability exposures resulting from the operation of your
business vehicles
-damage or destruction to your office equipment or inventory - loss of
income in case you have to close-up shop temporarily because of a
covered loss
-certain business related liability exposures such as, wrongful entry
or search, libel, slander and even offenses arising out of your
business’s advertising
-risks to your cargo while in transit or storage
-theft or loss of tools and equipment
-crime coverage including robbery, burglary, even employee dishonesty
What are the benefits of Commercial Auto Insurance?
Liability Coverage: In case you’re sued as a result of an auto
accident.
Collision Insurance: Helps cover physical damage to your vehicle due
to collision or upset
Comprehensive Insurance: Helps cover physical damage to your vehicle
due to fire, theft and glass breakage
Rental Reimbursement Coverage: Helps cover the cost of a replacement
vehicle for a specified period of time when your vehicle is disabled
due to an insured loss.
What are the benefits of Workers Compensation Insurance?
Workers Compensation insurance provides for the well being of your
employee’s and promotes a positive work environment. Be aware that
some states have passed laws that makes Workers Compensation mandatory
once a business expands to four or more employees on payroll. Workers
Compensation insurance was created in order to pay employees, medical
expenses and loss of wages in the event of a job related injury or
sickness.
What are the Benefits of Liability Insurance?
General Liability Insurance includes:
Bodily Injury Liability Coverage: Help protect you in case injuries
occur to other people resulting from your operations.
Property Damage Liability Coverage: Protection in case damage occurs
to the property of others.
Personal Injury Liability Coverage: Helps provide you with protection
for offenses such as false arrest, libel, slander and wrongful entry.
Advertising Injury Liability Coverage: Helps cover your legal ability
for a variety of offenses arising out of the advertising of your
business’s goods and services.
Life Insurance -
The Basics
The Basics
Most people buy life insurance to replace income that would be lost if
a wage earner passed away. Life insurance proceeds are tax-free, so it
can also play a role in estate planning, cash accumulation, retirement
funding, and the transfer of wealth to beneficiaries. There are quite
a few types of life insurance on the market today. The cost of a
policy and the features it offers can vary tremendously depending on
the type of insurance you choose. Here’s a rundown of the major types
of life insurance. (There are also differences between insurance
companies. For example, not all companies will charge the same price
for the same type of policy. So, it’s good to shop around.)
Term Life Insurance
Term life insurance covers you for a period of time you select (for
example, 10 or 20 years) and pays benefits only if you die during the
time you’re covered. Term life is often referred to as temporary
insurance. These policies do not accumulate cash value, which means if
you do not die within the time you’re covered, your estate does not
collect any money from the policy when it ends. However, most
companies offer conversion privileges to permanent policies, which
means you can turn your term life policy into a “permanent” one under
some circumstances. With permanent policies, a portion of your premium
goes to building cash value with interest.
Benefits of term life policies:
1. They cost less than permanent insurance.
2. Proceeds are not taxable to your beneficiaries.
3. They supplement employer-sponsored life plans, or older policies
that may be inadequate due to inflation.
4. While in effect, you typically can convert to a permanent policy
without evidence of insurability (that’s an official statement proving
you’re an insurable risk).
5. You can buy a large amount of term insurance to complement your
permanent policy. Permanent life insurance provides lifetime
protection, and lets you build cash value over time. You can use your
cash value to take out a loan for emergencies, fund a major purchase,
or send children to college.
Benefits of permanent life insurance:
1. Premiums remain constant over your lifetime.
2. Death benefits will be paid when you die. Also, some insurance
companies will advance death benefits to pay for nursing care or
terminal illness expenses. (These features are also available for some
term life policies).
3. You can accumulate cash value, tax deferred.
4. You can withdraw or borrow accumulated cash value.
Whatever type of policy you decide on, life insurance is a long-term
commitment.
Before buying, ask yourself a few questions: How much insurance do I
need? What would my dependents need to live comfortably if I died? How
much can I afford to pay for a policy? Do I want life insurance to do
more than replace income? Am I looking for ways to fund future
education costs, to pay estate taxes, to supplement retirement or
handle emergencies? Is the life insurance company I am considering
financially secure? How is the company rated by industry experts? Does
the company have good claims payment history and competitive prices?
Long-Term Care
Insurance - The Basics
Why Should
You Buy Long-Term Care Insurance?
1. It will help you keep your independence and dignity. Here’s
how...some of you will spend all your assets on care while others plan
to give their money away or put it in a trust. With no assets you will
now qualify for a welfare program called Medicaid. Medicaid typically
pays for a semiprivate home in a nursing home, and; not all nursing
homes take Medicaid patients. In many states it’s not easy to get
Medicaid to cover home care or pay for assisted living. Many people
want to stay at home, but with Medicaid you may not be able to. And
assisted living is rapidly becoming a preferred alternative to nursing
home care for certain disabilities, but Medicaid may insist on a
nursing home instead. A nursing home is not the most desirable place
to finish out one’s life. For many, a terminal stay in a nursing
facility robs them of a purpose in life and strips away their dignity.
As an example, have you ever thought of the indignity of being bathed,
toileted or diapered in a nursing home environment? No wonder many
people express the desire to die before ever having to go into a
nursing home. For some conditions a nursing home is the only
alternative, but for many long-term care patients there are more
options than nursing homes. A good long-term care insurance policy
covers those options and when all else fails, it pays for nursing
homes too.
2. If you are married and you have a need for long-term care, your
spouse may be forced to pay for an outside caregiver. The cost is
likely to come from your combined income and assets. If the need for
paid care drags on too long, your spouse may be left with minimal cash
assets for future needs. Insurance solves this problem and allows your
spouse to keep the assets.
3. Many health care-giving spouses won’t spend their money and choose
to “tough it out” on their own without help. If care of a disabled
spouse drags on too long, this can have a devastating effect on the
physical and emotional health of the caregiver. Surveys reveal that
even though healthy caregivers often don’t spend their money for help,
they will use insurance if available. Insurance allows the healthy
caregiver to buy much-needed respite from paid professionals, while at
the same time, retaining the assets and possibly avoiding an early
death from the mental and physical stress of caregiving.
4. If your children or extended family promise to take care of you
when the time comes, insurance will help them do that. Probably you
nor your children have thought of the prospects of moving you from
place to place, changing your dirty diapers, cleaning up after
“accidents” in the bathroom or helping you with bathing and dressing.
Insurance will pay for aides to help with these tasks.
5. If you are single and a need for long-term care arises, insurance
can pay for and coordinate that care. With insurance you won’t have to
feel you would be a burden for family or friends.
6. If you have the desire to leave assets behind when you die,
insurance will help preserve those assets from the cost of long term
care.
Disability
Insurance - The Basics
Individual
disability insurance is truly a basic concept. It is an insurance
product designed to replace anywhere from 45-60% of your gross income
on a tax-free basis should a sickness or illness prevent you from
earning an income in your occupation.
Every disability insurance plan has a definition of total disability
in the policy. You should always know the exact language of this
definition before you own anything. There are three basic types:
Own-Occupation Disability Insurance
The most comprehensive definition of total disability available. This
type of policy will have a definition that says: The inability to
perform the material and substantial duties of your regular
occupation. The insurance company will consider your occupation to be
the occupation you are engaged in at the time you become disabled.
They will pay the claim even if you are working in some other
capacity. Own-occupation disability insurance is the only plan that
does not penalize somebody for going back to work in a different
occupation while on a claim. Under this type of plan, the bottom line
is if because of sickness or injury you can not perform in your
occupation, you will be considered totally disabled, even if you
choose to do something else.
Replacement Insurance
This has become the most common definition of total disability in the
industry today. Most insurance carriers that have stopped offering
own-occupation disability insurance have moved to an income
replacement definition. You will find the first part of the definition
is very similar to an own-occupation definition, but it is with the
second part that the major change occurs. A typical income replacement
definition will look something like this: Because of sickness or
injury you are unable to perform the material and substantial duties
of your occupation, and you are not engaged in any other occupation.
As you can see there is a major difference between an income
replacement and an own-occupation definition of total disability. The
income replacement definition will penalize you during a claim if you
make the decision to go back to work, or earn another source of earned
income while on a claim. Most people if given the choice would go back
to some work if possible. Under this plan if somebody wants to go back
to work in some capacity, the insurance company may offset your
monthly benefit check. There is a common misconception that
own-occupation disability insurance costs a lot more than an income
replacement policy.
Gainful Occupation Coverage
This definition of total disability is very common in an employer
sponsored group long term disability insurance policy, or with
property and casualty insurance companies that decided to release a
disability insurance policy. It is quite simply the worst definition
available and should at the very least supplemented with a quality
contract if not replaced entirely. This definition basically leaves
the determination of whether or not you are disabled up to the
insurance company. A typical definition will look like this: Because
of sickness or injury you are unable to perform the material and
substantial duties or your occupation, or any occupation for which you
are deemed reasonably qualified by education, training, or experience.
You should be buying disability insurance so that you do not have to
worry about your income if you can’t do the material and substantial
duties of your occupation. Going with this type of disability
insurance policy is an inexperienced decision, and should be
re-thought for an own-occupation plan. Many people who simply shop for
the best disability insurance rate end up with this type of coverage.
Glynn Financial Services, LLC can assist you in selecting the correct
types of insurance for your business needs. Give us a call. (262)
644-2053
1155 E. Commerce Blvd.
P.O. Box 183
Slinger, WI 53086
Fax (262) 644-7777
What We Can Do For You Accounting Services
Audit Assistance
Business Plans
1099 Preparation
401(k) Review/Rollover
Business Problem Solving
Buying Real Estate
Cash Flow Analysis
Commercial Real Estate
Compilation
Computerization
Consultation
Corporate Services
Disability Insurance
Educational Plan
Estate Tax
Financial Statements
Gift Tax Returns
Health Savings Accounts
IRA's, Roth's
Land Development
Liability Insurance
Like-Kind Exchanges
Long-term Care Insurance
Management Advisory
Medicare Supplements
Mutual Funds
Non-Profit
Partnerships
Payroll
Pension Plans
Personal Property Tax
Retirement Planning
Sales and Use Tax
S Corporation
Selling Real Estate
Simple/SEP
Tax Preparation
Trust Tax Returns
Umbrella Insurance
W2 Preparation
Website Assistance
Workers Compensation
