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A new year is a great time for reflection and fresh starts.  It’s the perfect time to put the past behind you and look toward the future.  Compared to losing those extra 20 pounds, protecting your family in the event of a death is a surprisingly easy New Year’s resolution. 

Although most people don’t want to think about their own death or the death of a loved one, preparing for the event is one of the most selfless acts you can do for your family. 

Life Insurance for the Primary Breadwinner

The first thing you want to do, if you haven’t already, is ensure that the primary breadwinner in the family is covered.  Nothing can replace a spouse or a parent, but the financial consequences of that loss are another matter.  Life insurance can protect the surviving family members from the loss of future income and the expenses that occur as a result of a death.  Most people understand the importance of life insurance for the primary breadwinner, but there are other considerations as well.

Life Insurance for your Spouse

Very few families today can survive on one income, so even if a spouse makes less than the primary breadwinner, you should take a look at what the loss of that income would mean to your family.  Could you survive financially if you lost that second income?  Or, let’s say that spouse doesn’t produce a monetary income, but he or she is the primary caregiver of children or aging parents.  What would it take, financially, to replace that care?  No, life insurance can never replace the love of that caregiver, but it can give the survivors some peace of mind that their essential needs will be taken care of.

Life Insurance for your Children

Finally, the death of a child is probably the worst thing that can happen to anyone, and it’s every parent’s worst nightmare.  It’s something no parent wants to even consider, but in the event that something should happen, life insurance can at least alleviate the financial burden of a child’s death.  Many people believe that purchasing life insurance for children is a giant waste of money.  Your children probably aren’t bringing home a paycheck that you rely on to pay the bills, but there are other factors to consider.  

• The average cost of a traditional funeral is almost $6,600, according to the National Funeral Directors Association. Cemetery services, including the gravesite and vault or liner, can cost an additional $3,000.  A life insurance policy on your child allows parents to grieve without the burden of worrying about how they will pay for the funeral.
   
• Medical bills left from a prolonged sickness and/or emergency room visits can accumulate and become a burden to a family mourning the loss of a child.  A National Institute of Health (NIH)-funded study found the average cost for an ER visit was more than $2,000. In 2012, 11 of the 12 FDA-approved drugs for cancer were priced above $100,000 for a year of treatment.
   
• Your child may develop a condition later in life that will preclude them from purchasing life insurance in the future.  Protecting your child early in life can ensure they have protection in the future.

Protect Your Family with the Right Life Insurance

Looking to the future by protecting your family with life insurance is one of the easiest and most selfless resolutions you can make.  Make it a goal to protect your family with the right life insurance.  Contact us at American Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more about affordable life insurance policies available for your entire family. 

Business Insurance that Attracts & Retains Employees

Great employees can be the fuel to move your business ahead of the competition. Dedicated employees add more and more value over time as they gain increased knowledge and experience. While everyone likes a company that offers great benefits, the best employees and job candidates are likely to view the quality of the benefits you offer as a compelling reason to join, remain at, or leave your firm.

With today's cost of purchasing individual insurance, employees are likely to view well-designed employer insurance packages as a deciding factor in selecting one company over another. Furthermore, strong benefits packages help retain your best employees, reducing the high cost of employee turnover.

Designing an Attractive Employee Benefits Package

That's why smart business owners create attractive employee benefits packages that not only include health insurance, but often life insurance, extended disability insurance, dental insurance, and generous retirement plans, among other options. Executive compensation packages may also include deferred compensation plans and higher levels of insurance coverage to retain your best talent. It pays to be well informed on the range of insurance options available to your business.  Your independent insurance agent can be a key resource to help you craft an employee benefits package that attracts better employees at a price you can afford.

Commercial Insurance to Protect Your Business in Ways You May Not Have Considered

General liability insurance, property insurance, vehicle insurance, and workers' compensation insurance form the foundation of your business insurance protection. However, there are other types or subcategories of commercial insurance to consider. Among these are key person insurance, individual insurance, and insurance-backed buy-sell agreements.

Key Person Insurance: Thinking Beyond Job Titles Alone

Key person insurance, also known as key man insurance, is designed to reimburse you for the loss of sales or earnings due to losing an executive, business partner, or other key employee due to disability or death. When considering key person insurance, think beyond titles and identify those employees in your organization who, if unavailable, would dramatically impact your sales or the continuity of your business operations.

These may include high-performing sales reps and customer service personnel, as well as employees with deep technical knowledge of your industry or complex internal processes. Such people may be very difficult to replace with someone of similar knowledge or talent, resulting in reduced productivity or lost sales revenues for your firm for years to come. Your independent insurance agent can help you put together a smart key person insurance package to protect your business financially from the impact of losing a key employee. 

Backing Buy-Sell Agreements with Business Insurance Protection

In the excitement of starting a new business with your business partner, business owners often overlook the need to work out all the details of a buy-sell agreement that comes into effect as a result of the loss of the other business partner due to retirement, death, or disability. While an attorney may be invaluable in putting together such agreements, don't neglect the need to obtain the proper life insurance on each partner to carry the remaining partner through the transition period and to keep the business financially healthy. The insurance coverage should be sufficient to buy out the departing partner's share of the business due to any of the circumstances mentioned above.

Life Insurance for Business Owners: Obtaining the Right Amount of Coverage

Business owners should carefully determine the amount of personal life insurance protection needed. Unlike employees, owners often have significant personal assets tied up in the business, such as a second mortgage that may have been used to finance the business. If the surviving family members' income drops significantly due to the death of the business owner, the results can be disastrous not only for the family, but for employees as well, even if significant personal loans and assets have not been invested in the business.

Low levels of life insurance may threaten not only the entire business, but also the careers of all employees by potentially forcing the surviving family members to liquidate or sell the business to pay the personal debts of the deceased business owner, or simply to provide the income needed to keep up with day-to-day financial obligations.

We Can Help with All Your Business Insurance Needs

We can help you make sense of your many business insurance options, from key person insurance, to life insurance, health insurance, disability insurance, dental insurance, and other forms of personal and commercial insurance to protect your business, and to attract and retain employees. We serve businesses in Reading, PA, Philadelphia, Allentown, Harrisburg, Lancaster, Lebanon, State College, Pittsburgh, Erie and points in between and beyond. 

Contact us

(800) 947-1270 or (610) 775-3848 

Take the challenge - get a quote. We offer the best insurance protection at the best price.

Are You Procrastinating Over Life Insurance?

Life insurance. It's one of those decisions that can be so easy to ignore, a can we like to kick down the road, whether that road hails from Philadelphia, Reading, Allentown, Lancaster or beyond. If you've been procrastinating about resolving your life insurance needs, then this article is for you. Let's think this through and get that monkey off your back, shall we?

Life Insurance When Married or Single, With or Without Children

Life insurance is typically purchased to protect our loved ones from the financial hardships they would otherwise face in our absence. With that in mind, let's get real about the nature of those hardships. For those with children, the ante is upped. Yet even for couples with no children, the financial hardships faced by the surviving spouse can be onerous and life changing, to say the least.

Life Insurance to Protect Your Spouse or Partner

For starters, your spouse will need the financial resources to cover all your existing monthly bills without the benefit of your ongoing income. Big ticket items such as your monthly mortage are typically the first thing most people consider when figuring out how much insurance may be needed. However, couples with large credit card balances should also consider the impact of the high interest rates on credit card debt were the surviving spouse forced to make smaller or even minimum monthly payments on that debt. This alone could amount to a life sentence of unending high-interest debt that robs your loved one of the opportunity to save properly for retirement. With the proper life insurance these risks can be mitigated or avoided altogether.

Likewise, consider the amount and nature of all other consumer debt, from your spouse's car, RV, or motorcycle loan on up to truly big-ticket items such as a vacation home. If your spouse were forced to sell these things to help make ends meet, would the proceeds pay off the remaining debt on those items, or would your spouse in effect be "under water"? Consider the emotional impact on your spouse of losing a cherished item such as a vacation home or family car while being saddled for years to come with the remaining debt after the sale. 

Funeral costs are sometimes overlooked by those purchasing life insurance. With average funeral costs exceeding $6,500 before ancillary costs such as flowers, grave markers, and other cemetcry fees, your spouse may be forced to put this expense on a credit card if your life insurance policy is inadequate or if the insurance funds are needed for other purposes.

Life Insurance Protection for Those With Children

In addition to the above, those with children should consider the following financial needs or the surviving children, whether or not you are married or single. First, you will want to protect your children from the additional hardship of being forced to move into a different home. Losing a parent can be traumatic in itself, but the shock can be compounded when financial hardship forces a change of surroundings and a feelings of insecurity that often accompanies a forced change in the place they know as home.

Education is obviously important. However, beyond covering your child's college costs, consider if their current schooling situation will be forced to change. Tuition for private grade school or high school may be the first thing to go if funds are low, resulting in further disruption to a child's life at a most difficult time.

Child care is yet another concern, and for two reasons. First, if the surviving spouse is forced to go into the workforce after having stayed at home to raise children, those children may have to leave the familiarity and comfort of home at a most difficult time. Second, if the spouse had been working and continues to do so, she or he may be forced to find alternate care at a lower cost, and possibly a lower quality, again forcing a lifestyle change for a child at a very difficult time.

Think Through Your Life Insurance Needs

The above scenarios provide just a few examples of how your loved ones' lives can change when insurance planning has been poorly executed, or worse, completely avoided. Don't procrastinate. Instead, take the time to think through the needs of your loved ones should they be forced to cope without your income. Every situation is different, which is why consulting with your independent insurance agent can be key to obtaining the best life insurance situation to suit your unique needs.

In summary, we've covered 7 common-sense reasons to get the proper life insurance protection for your peace of mind and your family's welfare. Are there additional financial needs beyond these that apply to your situation?

1. Protect your family from financial hardship in general
2. Credit card debt
3. Other consumer debt
4. Funeral costs
5. Allow family to stay in current home
6. Cover college and private school tuition (avoid change)
7. Cover child care costs (avoid change)

Contact Us

Don't kick the can down the road when it comes to life insurance. Please click here to contact us today, or call us at (800) 947-1270 or (610) 775-3848 for help in obtaining the right life insurance protection to meet your needs and budget.

Although we'll all die someday, when we do, we don't want to leave our loved ones with huge debts or financial problems. To ensure your family is financially secure in case you should pass away unexpectedly, you need life insurance. Like other financial products, it is important to get an insurance solution that provides the best value for your money.

An affordable policy can help you save money without straining your budget. Here are seven tips to help you pay less for insurance:

1. Determine the amount of life insurance you need

Check your finances and determine how much life insurance you need. Consider the expenses that your spouse and loved ones will have to bear should you pass away unexpectedly. Think about short-term expenses such as funeral expenses, buying food and paying rent, as well as long-term expenses such as college education costs.

Check the amount of savings you have and use life insurance to cover the difference between the savings and the total expected expenses of your loved ones.

2. Decide on the type of life insurance to apply for

You can apply for permanent or term life insurance. Permanent insurance offers protection for your whole life while term life insurance provides protection for a specified term. Term insurance will help you save on your payment cost. The insurance is cheaper than permanent insurance and is the better option in many situations. However, in some cases a whole life policy may work best for you, depending on your investment portfolio and strategy.

3. Shop around for the best rates

Insurance providers charge different rates. To get the best deal in the market, shop around and compare the offers of different providers. Look at both the cost of premiums you will pay and the coverage provided by each insurer. Use online insurance comparison websites to compare rates from different providers, but be sure to speak with a knowledgeable insurance agent before making a final decision. Remember, and independent agent is positioned to save you money because he or she represents many different insurers, and can select the best policy for your specific needs.

4. Check for hidden fees

As you shop around, be sure to understand all hidden fees. Some insurance companies charge fees every month instead of annually. Some policies also come with riders, or add-ons, that may not benefit you at all. Examples of add-ons that you should understand in terms of both cost and benefits before reaching a decision include:

• Accident death benefit
• Waiver of premium rider
• Disability income rider
• Accelerate death benefit

5. Make lifestyle changes

Staying healthy can significantly lower your insurance premiums. People with lifestyle diseases such as obesity and diabetes usually pay higher premiums. Before you apply for insurance, think about getting into shape, quitting smoking, and reducing alcohol consumption. If you already have purchased life insurance, you can renegotiate the payments when you start leading a healthier lifestyle.

6. Round up your payments

Most of the time, you will pay less for coverage that is rounded up into larger multiples. For example, a $500,000 policy may cost less than a $400,000 policy. Check with your insurance provider for the rate per $1000 of coverage, which usually goes down when a certain amount of coverage is achieved. The figure will help you determine the amount of benefits you will receive for the least amount of money.

7. Find an independent life insurance agent and the right insurance company

Some companies offer competitive rates for conditions such as cancer, heart disease and diabetes. These companies have underwriters who analyze the condition of insurance buyers on a case-by-case basis rather than setting a lump sum for buyers with a particular condition in one group. For example, if you have mild diabetes, you are likely to pay less than a person with chronic diabetes. An independent agent can help you compare such options from several companies, resulting in a better match between your needs and your policy.

Need help finding the right life insurance at the right price?

We can help. Contact us at 800-947-1270.

Life Insurance - It's "Booming"!

With the large baby boom generation entering retirement age, retirement planning is getting more and more attention. Interestingly, while marriage is still the leading cause for people to buy life insurance, retirement is also a major motivation. In fact, research from Northwestern Mutual Life, as conducted by Harris Interactive, shows that 25 percent of people buy life insurance products when they enter retirement -- almost as much as the 32 percent of people that buy it after getting married. 

Income and Retirement

On first glance, this may seem a bit counter intuitive. After all, many people buy insurance when they are younger to protect their spouses and family against a loss of income and Northwestern Mutual's research bears this out. As people age, protecting their incomes from work becomes less important as their living expenses drop and income from their retirement portfolio begins to replace wages. 

Retirement today is more complicated than in the past. Today, many retired people still work, although they may work reduced hours or switch careers. This can create a need to secure income. In fact, many of the retired people that purchase life insurance cite a desire for income security as a major motivating factor. 

Making Money on Life Insurance... Without Having to Die

Purchasing a life policy can do much more than protect income. It can also augment existing income. Products that include an annuity feature provide yearly cash payments that provide retired couples with more money and a more fulfilling lifestyle. Whole life and universal life insurance products can be smart savings vehicles, building value and earning very secure returns while also providing a death benefit like other types of life coverage.

Insuring the Life of a Business

Life insurance coverage is especially valuable as an estate tax planning tool for retired people with businesses or large tangible assets but that also have comparatively small pools of cash, securities or other types of liquid assets. When people in this situation die, their heirs inherit their assets but will have to pay an onerous estate tax on the value of assets transferred to them that exceed any exclusion. Without cash, they would have to sell the asset or business to pay the estate tax liability. To mitigate against this eventuality, some retired asset holder purchase additional life insurance. Upon their passing, the insurance pays a tax-free death benefit which their heirs can use to pay the estate tax, leaving them the ability to retain the assets.

With all of these benefits, it is not surprising that 25 percent of retired couples are purchasing and benefiting from life insurance. As more people discover its benefits, it stands to become even more popular.

Do you need better life insurance coverage?

We can help. Contact us at 800-947-1270 to review your options.

Life insurance coverage might not be the first thing you think of when considering your financial planning.  However, it is an extremely important component of that planning.  If the unexpected happens, the people you leave behind could be left with the very same financial hardships you’ve been working so hard to prevent, especially if you haven't put the proper life insurance in place.  Sadly, as you'll see from the data below, most people fall into one of two categories: uninsured or underinsured.

Survey: 39% Have No Life Insurance

If life insurance hasn’t made it to your priority list, you aren’t alone.  An August 2012 survey from Harris Interactive found that 39% of respondents had no coverage.  Most people thought it would cost them too much, but many hadn’t even considered whether they need it.  In short:

Of the 39% with no coverage:

• Costs too much:  45%
• Haven’t thought about it:  23%
• Don’t think they need it:  20%
• Partner provides coverage:  6%

61% with Life Insurance are Open to Risk

People who had life insurance coverage had not eliminated their risk, either, though.  How much coverage is needed is based on many variables.  There are the immediate expenses, of course, such as funeral expenses.  Then there are longer-term considerations, such as mortgages, college expenses, and inflation. 

The survey found that 61% of respondents had too little coverage based on a rule of thumb that a million dollar policy would be sufficient to cover a median household income of $50,000.  Most of these respondents hadn’t really considered how much life insurance would be needed to take care of those left behind when all the variables are considered.  

Of the 61% with too little coverage based on their income:

• $100,000 of coverage or less:  53%
• $100,000 to $250,000:  20%
• $250,000 to $1,000,000:  15%
• $1,000,000 or above:  2%

(You can see an infographic of this data here.)

As you can see, most Americans are woefully unprepared or under-prepared when it comes to life insurance.  But it really doesn’t have to be this way since these policies can be very affordable and flexible. 

To protect the work you’ve done in life, and protect those you leave behind, talk with an insurance adviser about your specific situation.  They can help you consider all the variables and calculate what amount of life insurance you should incorporate into your financial planning.  

Need Help Understanding Your Life Insurance Options?

If you'd like help reviewing your life insurance coverage, please contact us today for a free, no-hassle consultation.  

Life insurance: there’s a lot riding on finding the right policy. After all, if your loved ones should end up needing it, you want to know they will be properly covered. Therefore, targeting a life insurance policy that’s both affordable and offers quality protection is the right way to begin your search.  

Who Can You Trust?

Given all the life insurance advertising on TV, you may be tempted to call an 800 number for one of the big life insurance advertisers. The trouble is, if you do that you are not taking advantage of the price and coverage competition that occurs when quoting multiple insurance companies at the same time. 

And, if you try to quote multiple companies without the benefit of someone who understands the difference between the coverages offered by various insurance providers, then you risk missing something important in your coverage – something that may reduce important coverage needed by your loved ones.

Life Insurance Choices + Knowledge = Quality and Savings

The solution? Get help from a knowledgeable and trusted Pennsylvania life insurance broker in Reading PA or elsewhere who represents many competing PA life insurance companies, and who can guide you through the process of getting the right life insurance coverage at the right price.

That’s where your friends at American Insuring Group near Reading, PA can help.  Our professional agents are committed to helping you understand what life insurance coverage you need for your spouse and family, and to finding an affordable life insurance policy that is well suited to your needs.

At American Insuring Group, we represent virtually every life insurance company that is licensed in the USA, so you can “bet your life” you are getting the best coverage at the best price. Our unique website offers instant on-line life insurance quotes from all the major life insurance carriers.  Our lifelong pledge to our customers is this, "If we can’t save you money on your life insurance, dinner is on us”! 

Do it Right

So whether you’re located close to our Shillington office near Reading, PA, or near Philadelphia, Lancaster, Harrisburg, Allentown, Pittsburgh, or Erie, we can help. Call one our professional licensed insurance agents today at 800.943.2198 for high-quality, affordable life insurance.

You’ll be doing the right thing for your loved ones!

Life Insurance quotes are a lot like a bowl of Cherries, just make sure you pick the ones that are ripe and delicious!

Whole Life Insurance - Yesterday's Most Popular Choice

Back in the good old days, getting life insurance quotes from the local life insurance agent was a pretty simple and routine task.  Typically Mom and Dad purchased a life insurance policy on all the kids at birth from the agent who came to the house every month to pick up the premiums due for Whole Life Insurance policies that were written on Mom and Dad when they got married. A Whole Life Insurance policy built a cash value by paying dividends and interest. These types of life insurance policies usually had a small death benefit and were very expensive. This is what a typical family purchased as recently as a decade or two ago.

Term Life Insurance is Popular Today, But is it Right for You?

Today almost all life insurance quotes are for Term Life Insurance.  Term Life Insurance covers the risk from premature death and usually the cost for the policy is set for a "Term" or period of time.  Common Term Life Insurance periods are 10 or 20 years.  The advantage of this type of Life Insurance policy is that it provides the maximum amount of death benefit at the lowest price. The disadvantage of Term Life Insurance is that there is no cash build-up to offset the increasing internal costs so at the end of the "term", the premium or cost increases dramaticallly. The concept behind term life insurance is the insurance company underwrites you for the "Term" and then has an oportunity to re-evaluate your health before they offer you another policy.

Another type of life insurance policy is a hybrid of Whole Life Insurance and Term Life Insurance known as "Universal or Interest Sensitive Life Insurance".  These type of policies combine the advantages of lower-priced Term Insurance with a cash value build-up to help offset the rising cost of the death benefit.

Sorting Out the Pits from the Cherries

So why not just buy "Cheap Life Insurance" from those companies that constantly bombard you with ads for low cost life insurance?  Why not call 1-800-Low-Cost-Life-Insurance and have them write the coverage you think you need?  The reason is your family is too important for that!  You need an Independent broker who represents many competing life insurance companies who offer many different types of life insurance policies for many different situations. More choices help ensure you get the best deal, and one that best meets your unique needs.

One big life insurance question that usually will not be discussed over the phone is "what are the different types of life insurance policies and which one is right for me"?  Only after a thorough discussion of your personal finances and only after a proper discussion of your needs and desires can an experience, professional, licensed agent make a proper recommendation of your life insurance needs. 

Cleaning up the Bowl by Planning for the Future

Too many consumers buy a life insurance policy that they "think is right for them" but is often not thought through.  One big question your agent should ask you when getting life insurance quotes is "what needs will you have after the Term Life Insurance expires"?  The last place you want to be is facing a mortgage or need for an income to a spouse and finding your term life insurance is going to be canceling the policy due to the term expiring or finding out that the price for a new term policy will be skyrocketing at the end of the term.  I cannot stress enough the importance of having an experienced agent review your individual needs and help you develop the best life insurance plan for you and your family. 

Please contact American Insuring Group LTD today for a free, no-obligation personal review of your life insurance needs. One of our agents will design a life insurance plan just for you and your peace of mind. Call today at 800-947-1270 or email me at david@aigltd.com.