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How to Gift a Life Insurance Policy

Posted by David Ross on Fri, Feb 13, 2015

IHow To Gift Life Insurances there a non-profit organization near and dear to your heart that you would like to assist financially?  Maybe it’s a religious organization, a pet shelter, or a children’s home.  You aren’t alone. It turns out that we are a very charitable people with more than 95% of American households giving an average of just under $3,000 a year to charity.  But, do you ever wish that you could do more?  There is a way to give more financial support to your favorite charity.

A life insurance policy can provide the opportunity to make a much larger gift to charity than you might otherwise be able to afford. Although the cost to you (your premiums) is relatively small, the amount the charity will receive (the death benefit) can be quite substantial. Yes, that charity may have to wait for the donation, but as long as you continue paying the premiums, the charity is guaranteed to receive the proceeds when you die.  Plus, this method may provide some unexpected advantages.

Here are some unique advantages to the gift of a life insurance policy:

  • Because life insurance is a contract that passes outside the will, it cannot be contested in probate proceedings.
  • The payment of a life insurance policy death benefit is private—not a matter of public record.
  • Although payment of the life insurance death benefit is deferred, the charity may be able to use the cash value immediately.
  • The charity does not pay income or estate tax on the benefit.
  • There are no probate delays.
  • Assets are preserved for the donor's family.
  • Since life insurance proceeds paid to a charity are not subject to income and estate taxes, probate costs, and other expenses, the charity can count on receiving 100 percent of your gift.

How to gift a life insurance policy:

  1. You can make a charity the beneficiary of an existing policy.  Maybe you took out the policy when you had children living at home; now all those children are grown and independent.  They don’t need your financial support.  If you name the charity as the beneficiary of the policy, they will receive the policy’s death benefit when you die.  Although there are no current tax benefits with this approach, the value of the policy will be removed from your estate for federal estate tax purposes.  Plus, if the policy is a form of cash value life insurance, you still have access to the cash value of the policy during your lifetime.
     
  2. You can make a charity the owner and beneficiary of an existing policy. With this approach, you transfer full ownership of the policy to the charity.  You would make annual tax-deductible gifts to the charity in an amount equal to the premium, and the charity would pay the premium to the insurance company. Upon your death, the charity will receive the policy’s death benefit.  This approach also removes the value of the policy from your estate for federal estate tax purposes and provides you with current federal income tax deduction. To do this, you must assign all rights in the policy to the charity. By doing this, you give up all control of the life insurance policy forever. This strategy provides the full tax advantages of charitable giving because the transfer of ownership is irrevocable.
     
  3. You can have a charity purchase a new life insurance policy on your life. With this approach you must arrange to pay the premiums through gifts to the charity, but it also provides federal income tax deductions and the policy proceeds aren’t included in your estate for federal estate tax purposes.
     
  4. You can use a life insurance policy in conjunction with a charitable remainder trust.  This approach is pretty complex and requires an attorney to set it up.  However, it provides greater tax advantages than other, simpler methods. 

Learn More About Gifting a Life Insurance Policy

Gifting a Life Insurance Policy. Serving Lancaster, Reading, Philadelphia, Harrisburg, Allentown, Pittsburgh, Erie, State College, Lebanon, and Pennsylvania with affordable, high quality life insurance policies for over 25 years.To find out more about giving the gift of a life insurance policy to your favorite charity, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.

Tags: Life Insurance Berks Pa, Life Insurance Philadelphia Pa, Life Insurance Lancaster Pa, Life Insurance Reading PA, Life Insurance Allentown Pa, Life Insurance Harrisburg Pa, Life Insurance York Pa, Life Insurance

4 Reasons to Re-Evaluate Your Life Insurance

Posted by David Ross on Tue, Dec 09, 2014

So You Have Life Insurance? Good for You, But ...

95 million Americans lack life insurance. Is it time for you to get life insurance or re-evaluate your life insurance coverage? Contact us for help. We serve Philadelphia, Reading, Lancaster, York, Harrisburg, Allentown, the Lehigh Valley, Erie, Pittsburgh, PA and beyond.Currently, 95 million Americans live without life insurance and only one-third of consumers are covered by individually-owned life insurance policies. So, if you’ve taken any time to think about life insurance and how to best protect your loved ones in the event of your death (which, let’s face it, is inevitable), you’re probably patting yourself on the back, telling your family how lucky they are to have such a responsible person in their lives, and never gave that policy another thought.

Well….  Yes, they are lucky to have you, but the fact is there are times when you should re-evaluate your policy.    One survey found that nearly eight out of 10 people have never changed or even thought about changing their life insurance policies.  The circumstance of your life can change, and your life insurance needs may change with them.

Here are four circumstances when you should take a look at your life insurance policy to ensure that you have the right coverage:

The size of your family changes.
If you get married, have children, get a divorce, or watch a grown child leave the nest, you may want to change the amount of life insurance coverage on your policy.  If your spouse relies on your income to maintain his or her current lifestyle, you may want to increase your coverage to pay off certain debt in the event of your death. 

If your family grows with the addition of children, you may want to make sure there’s enough money to pay for expenses such as a college education or a wedding in the event of your death.  When (hopefully not if) your children grow up, get their own place, and become financially independent, you may want to reduce the amount of your policy.

Plus, you may want to change the beneficiaries on your policy.  Imagine having a life insurance policy with your ex-wife or a deceased parent as the beneficiary.  You may also want to add your children as backup beneficiaries in the event that something happens to both you and your spouse at the same time.

The amount of your debt changes.
In the event of your death, your debt can become your family’s burden.  If you’ve taken on any significant debt, such as a mortgage or student loan, since purchasing your life insurance policy, you may want to increase your coverage.  Then again, if you pay off a mortgage or student loan, you may be able to reduce the amount of coverage or even cancel certain life insurance policies.  Look at your entire financial picture to see if there are other needs for life insurance.  If not, cancel the policy or reduce the benefit amount and enjoy the savings on your premiums. 

Your child becomes disabled.
You may have purchased a term life insurance policy with the assumption that your children will eventually become self-sufficient and no longer need your financial support.  If one of your children becomes disabled, they may need your financial support for a longer period of time.  In this case, you may want to consider taking out a permanent policy that will provide for the child no matter when you pass away.  

You purchased your life insurance policy prior to 2009.
This may seem odd, but 2009 is the year that insurance companies were required to switch to the 2001 mortality tables (the previous table was from 1980), which shows that people are living longer, paying into their insurance premiums longer, and delaying when the policy is paid out.

As a result, your monthly premiums may be lower.  Although you can’t renegotiate your existing policy, you can ask your independent insurance agent to shop around for a lower quote on the same policy.  You may end up with a lower premium. 

 

Contact us for the right life insurance protection. We serve Reading, Lancaster, Philadelphia, Harrisburg, Allentown, the Lehigh Valley, Lebanon, Erie, Pittsburgh, PA and beyond.If you’ve experienced any of these changes, since you purchased your original life insurance policy, contact the independent insurance agents at American Insuring Group at (800) 947-1270 or (610) 775-3848.  

We offer coverage from competing insurance carriers, so we can find the best deal in terms of quality and coverage, so go ahead and take the challenge. We can take a look at your policy to make sure you have the right coverage for your current circumstances, and then you can pat yourself on the back again!

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6 Reasons for Life Insurance After Retirement

Posted by David Ross on Wed, Sep 17, 2014

Carrying life insurance during retirement makes sense in some cases. Contact us to learn if it may make sense for you. We serve Reading, PA, Berks County, Philadelphia, Lancaster, Harrisburg, York, Lebanon, Erie, Pittsburgh, Allentown, the Lehigh Valley and beyond with quality life insurance protection.Ideally, when you retire you are financially stable enough that your death will not leave your spouse or a loved one struggling to make ends meet.  So, the question becomes, “Do I really need to keep paying on my life insurance policy after I retire?”  Life insurance is not really intended to insure your life; nothing can truly replace your life.  Life insurance is intended protect your surviving loved ones from financial loss upon your death.   

It’s interesting to note that some people have a hard time letting go of their life insurance policy.  They think, “I’ve paid on this life insurance policy since I was 25.  I can’t just cancel it.  I didn’t get anything out of it.”  Those same people rarely say that about other types of insurance.  For example: Let’s say you have insurance on a motorcycle you own, and you decide to sell the bike.  Would you continue paying the insurance premiums for that bike?  No, of-course not, and you’d probably be glad you never needed to make a claim and relieved not to have to pay the premiums anymore. 

Financially, the “I haven’t gotten anything out of it yet” scenario isn’t a good reason to continue paying on a life insurance policy; however, there are a few scenarios in which keeping an insurance policy after retirement may make sense.

 

6 Reasons Why Life Insurance after Retirement May be Right for You

Inadequate pension:

If your family relies on a spouse’s monthly pension payment, and that spouse chooses the higher payments of a plan that is based solely on his/her life expectancy, rather than the lower payments of a “joint and survivor” benefit option or if only a low percentage of the pension is paid to the surviving spouse, you may want to consider keeping your life insurance policy to avoid a financial hardship for the surviving spouse or family members.

Non-adult children:

Many couples are choosing to have children later in life.  If you retire and still have children who rely on you for their financial security, a life insurance policy can help.

Inheritance:

For some parents, it’s important to leave their children (even financially-secure, grown children) an inheritance.  A life insurance policy can provide your children extra financial security for years to come.

Legacy:

Naming your favorite non-profit organization as your primary beneficiary is a great way to pay a little each month and leave a substantial amount to a charitable cause.

Estate Taxes:

If you’re leaving behind a large, illiquid estate, the taxes your beneficiaries will need to pay can be significant.  A life insurance policy can help maintain your estate without affecting their personal assets.

Business Owners:

If you are a business owner or partner of a company with illiquid assets, you may want to consider keeping your life insurance policy.  Illiquid assets are subject to both taxation and market flux.  A life insurance policy can ensure that your business won’t have to liquidate corporate assets.

 

Temporary or Permanent Life Isurance Policy?

If you decide that you still need a life insurance policy after retirement, you probably don’t need as much or as long of a term, which is good since your rates will increase as you age.  Rather than renewing a term (or temporary) policy, it may be wise to take out a permanent policy (such as a universal or whole life plan). Although permanent policies are generally more expensive, they usually provide higher benefits and you’re guaranteed to “get something out of them.”

Learn More About Life Insurance - Contact Us!

Contact us to learn if life insurance in retirement is right for you. Life insurance can be a difficult topic to discuss. There is no one-size-fits-all approach to retirement or to life insurance. At Amerian Insuring Group we can help you determine your best course of action regarding life insurance after retirement; please contact us at (800) 947-1270 or (610) 775-3848.

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Could Someone Take out a Secret Life Insurance Policy on You?

Posted by David Ross on Wed, Jul 23, 2014

Can someone really take out a life insurance policy on you without your knowledge? Get the facts on life insurance protection from American Insuring Group, serving Philadelphia, Reading, Lancaster, Harrisburg, Allentown, Lehigh Valley, Pittsburgh, Erie, PA and beyond.Life Insurance and Murder Mysteries

A 25-year-old wife falls to her death while hiking with her husband.  The woman’s mother, convinced that her son-in-law pushed her daughter over the edge, goes on a relentless hunt to prove his guilt.  The authorities, dismissing the accusations as the rantings of a grief-stricken mother, ignore her claims.  That is until they discover that the husband secretly took out a million dollar life insurance policy on his wife just days before her death.

Is this just a plot for a classic film noir masterpiece or could it really happen?  Could someone buy a secret life insurance policy on someone else – maybe even you?

You can rest easy; this life insurance collection plot is extremely unlikely.  Here’s Why:

  • Most life insurance policies require a medical exam of the person being insured.
  • Most policies require you to sign an acknowledgement letter that will allow the insurer to access your medical information.
  • Even policies that don’t require a medical exam will require the signature of the insured.
  • It has become standard practice for most insurers to make a follow-up phone call to the person being insured to verify the information on the application.
  • Insurance companies make sure that the person buying the policy has an "insurable interest" in the insured, based on marriage, blood, or business relationships.

 

What About Secret Employer-Based Life Insurance Policies?

Up until 2007, employers could purchase life insurance policies on their employees without their employees’ knowledge or consent.  In the event of an employee’s death, the employer would receive the benefits of that policy. These were known as “dead peasant” policies (lovely, right?).

 

The bottom line on secret life insurance policies

If you want to go hiking with your spouse, go ahead.  The chances that he or she has taken out a “secret” life insurance policy on you are slim to none. 

As a Trusted Choice independent insurance agency, we offer the best deal on quality life insurance by researching offers from competing insurance carriers, so you are assured of the best deal for your money.To learn more about obtaining the best life insurance protection, contact us at (800) 947-1270 or (610) 775-3848.

As independent Trusted Choice insurance agents, we offer life insurance policies from competing carriers, so unlike single-brand agencies, we are equipped to find you the best deal that truly meets your insurance needs. Call today.

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How Life Insurance Can Help Field Life’s Curveballs

Posted by David Ross on Sat, Jun 21, 2014

Life Insurance For Lifes CurveballsMost people don’t want to think about life insurance; it’s something they pay for and hope they never use. But, let’s face it - you just never know when life is going to throw you a curveball.  It’s what makes life so incredibly exciting sometimes and so very scary at other times. 

Insurance can help you and your family field many of life’s curveballs, but too many people don’t think about insurance until it’s too late.   Here are three curveballs that the right insurance can help you and your family handle.

Early Death

Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.” We are all going to die; fortunately, the odds of dying at a young age are pretty slim.  In fact, the odds of a 25-year-old American dying is about 1 in 3,000; for a 33-year-old, it’s 1 in 1,500; and for a 42-year-old, it’s 1 in 750.  Comforting, right?

What if you have the misfortune of being one of the “1 in”?  If you haven’t planned for this curveball, the financial consequences can be devastating to those you leave behind.  Younger individuals often have additional debt, such as student loans and mortgages.  Many have young children who still have a lifetime of expenses ahead of them.  Life insurance can financially protect your loved ones. 

Long Life

On the flip side of an early death, is living well into your 90’s or 100’s.  Medical advances are allowing people to live longer, healthier lives.  According to data compiled by the Social Security Administration:

  • A man reaching age 65 today can expect to live, on average, until age 84.
  • A woman turning age 65 today can expect to live, on average, until age 86.

And those are just averages. About one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95. Traditionally, most people expected about 15 years of retirement.  Today, it can be 20, 30, or even longer.   This is awesome, right? 

Absolutely - if you’ve prepared for this particular curveball.   A permanent life insurance policy can provide much-needed funds to help supplement your retirement income.  You can also get a long-term care rider on permanent life insurance that can help cover long-term care costs.

Becoming Disabled

Your chances of becoming disabled are probably higher than you think.  According to the Council for Disability awareness:

  • Just over 1 in 4 of today's 20 year-olds will become disabled before they retire.
  • One in eight workers will be disabled for five years or more during their working careers.

Are you prepared this curveball? Probably not.

•       The average group long-term disability claim lasts 34.6 months.

•       5% of working Americans say they could not cover normal living expenses even for a year if their employment income was lost; 38% could not pay their bills for more than 3 months.

The Case for Disability Insurance

Disability insurance is important to help you make ends meet until you’re able to go back to work.  Plus, many life insurance policies allow you to add a disability waiver to cover certain expenses if you become disabled, and some permanent life insurance policies have a premium waiver in the event you become disabled.

Contact us for help in obtaining the right life insurance or disability insurance to help handle life's curveballs.Insurance Protection for Those Curveballs!

American Insuring Group can help protect you and your family from life’s unexpected curveballs.  Contact us by email or give us a call at (800) 947-1270 or (610) 775-3848.

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8 Easy Ways to Lower Your Life Insurance Premiums

Posted by David Ross on Sat, Mar 15, 2014

Tips for making life insurance more affordable. By American Insuring Group, serving Philadelphia, PA, Reading, Allentown, Bethlehem, Harrisburg, Pittsburgh, Erie, Lancaster, Lebanon, Hershey, York, Pennsylvania and beyond.Have you ever wondered what factors determine your life insurance rates?  Is it just your age…the state of your current health? Is there anything you can do to make your life insurance more affordable?

Insurance companies look at several factors to determine the likelihood that A) you’ll live a very long life, or B) you’ll die very soon. As depressing as that may sound, it’s a fact, and it’s what determines your life insurance premium. 

What Do Life Insurance Companies Consider When Setting Your Premium?

While every insurance company has its own underwriting criteria to determine your premium, you may be surprised by some of the factors they look at.  What isn’t surprising is that many of the factors that determine your life insurance premiums can also affect the quality and/or length of your life. Some you can change and some you can’t.  

Here are eight factors many insurance companies use to determine your life insurance premiums, and some tips on how to get a better rating and save on your life insurance policy.

1. Driving violations

If you’ve had two moving violations in the past year or a DUI in the past 5 years, you may be considered a reckless driver, which could put your life in danger and pose more risk for the insurance company.  There isn’t much you can do about existing violations, but you can SLOW DOWN and not drink and drive.

2. Your workplace colleagues

If you have group life insurance from your workplace, the premiums are based on the average age and health of everyone, not just you.  So if you work with a group of individuals who are older and less healthy than you, it may raise your premium.  On the other hand, if you work with a group of individuals who are younger and healthier than you, it may lower your premium.  Make sure you compare the price of an individual health insurance policy before jumping into a group plan. 

3. Credit history

Individuals who have filed for bankruptcy are considered a high-risk proposition and many insurance companies won’t even issue a policy until their credit report has been cleared. Make sure you consider all the alternatives and consequences before filing for bankruptcy. 

4. Lifestyle

Are you a daredevil?  Do you prefer skydiving to reading…car racing to gardening? Certain hobbies can disqualify you from getting the best rate on life insurance.  Even travel outside of the country can increase your premiums.  So, consider the increased cost of life insurance when weighing the pros and cons of your career choices.

5. Occupation

Higher-risk occupations, such as airline pilots and high-rise construction engineers, can create a higher risk for premature death, thereby causing higher life insurance premiums.  Solution – choose your occupation wisely.

6. Smoking Habits

We all know smoking can raise your risk of stroke, lung disease and many other life-threatening medical conditions; therefore insurers often charge smokers a higher premium.   One more reason to kick the habit. 

7. Your weight

There are a number of diseases related to being overweight that can shorten your lifespan.  Most insurers look at height, weight, and body mass index (BMI) to determine your premium.   Plus, many insurers want to see you keep that weight off for at least one year before they will offer you a better rate.   So if you were looking for that final push to get you started on an exercise and diet plan, think about all the money you can save on your life insurance premiums.

8. Family health history

Your family’s medical history shows what diseases you may be prone to. You can choose your friends, but not your family; however, you can choose to protect your family with the right level of life insurance, and you can ask your doctor for advide on how you may be able to reduce your health risks through proper diet, exercise, and other factors in light of your family medical history.

Contact American Insuring Group near Reading, PA for help in finding the right life insurance policy for your business or family.Ready to Talk Life Insurance?

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more about your life insurance options, or for a free quote on life insurance.

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Forget the Past, Look to the Future: Get Life Insurance

Posted by David Ross on Sat, Feb 15, 2014

Plan for the Future with Life InsuranceA 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

Look to the future: protect your family with the right life insuranceLooking 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. 

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Key Person Life Insurance and Million Dollar Legs

Posted by David Ross on Thu, Feb 06, 2014

What do Legs Have to do with Key Person Life Insurance?

WLearn why key person insurance may be right for your business. We insure large and small businesses in PA, including Reading, Philadelphia, Harrisburg, Erie, Lancaster, Allentown, Hershey, York and beyond. Call for the best advice on key person life insurance.e’ve all heard stories about celebrities insuring various body parts for ridiculous sums of money - most famously, Betty Grable’s legs were insured for a million dollars. Why would anyone insure such a thing? The fact of the matter is, her studio made a lot of money off of Betty Grable’s appearances, and a large part of her appeal were her fabulous gams. If her legs had been marred in any way, her ability to sell movies and posters would’ve been greatly reduced.   

Now, think about this.  Are there any parts – such as key person - of your business that, if lost, would significantly impact your bottom line?

Who is a Key Person?

A key person in your company is like Betty Grable’s legs. That person could be one of your executives, your best salesperson, your gem of an office manager who keeps things running smoothly, or an old hand who knows where all the skeletons are buried (figuratively, of course!). A key person is any employee who, if he/she suddenly passed away or became unable to work, would cause your business to struggle. Look around your office – who couldn’t your business afford to lose?

The Vulnerability of Small Businesses and the Need for Key Person Insurance

Getting Key Person Life Insurance is especially vital for small businesses, both because they generally have a thinner line between success and failure, and because they have smaller workforces. A giant firm with offices all over the country may not have any employees who are irreplaceable; since they are all tiny cogs in a giant machine with many redundancies, while a small company with only a few employees has less overlap in responsibilities.

With a small workforce, employees often have unique and specialized knowledge and connections that may not be easily replaced. Also, for businesses just starting out, if one of the partners has an accident, the poor fledgling company would be doomed to fail unless there was some kind of cushion. That cushion could be a Key Person Life Insurance policy.

Grieve without the Worry

Of course, the loss of any employee’s life - regardless of how essential they were to your business - is an awful thing to contemplate. A Key Person Life Insurance policy can allow you to grieve, without the worry of how you’re going to be able to keep the company afloat until you find or train a replacement.

Is Key Person Life Insurance Right for Your Business?

Is key person insurance right for your business? Call us for answers.If you have people who are as valuable to your business as Betty Grable’s legs were to her, contact American Insuring Group at (610) 775-3848 or (800) 947-1270 for information on Key Person Life Insurance policies for your business!

Contact us to learn more about Key Person Insurance. We serve Philadelphia, Reading, Lancaster, Allentown, Harrisburg, Pittsburgh, Erie, Scranton, and all of Pennsylvania and beyond with quality business insurance at affordable prices.

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Business Insurance to Attract Employees and Protect Your Business

Posted by David Ross on Thu, Nov 14, 2013

Business Insurance that Attracts & Retains Employees

Business insurance to attract and retain employees and to protect your business, from key person insurance to insurance for better employee benefits. Available from American Insuring Group, serving Reading, PA, Allentown, Philadelphia, Harrisburg, York, Lancaster, Erie, Pittsburgh, PA and beyond for over 25 years.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. 

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7 Common Sense Reasons to Buy Life Insurance

Posted by David Ross on Sat, Oct 19, 2013

Are You Procrastinating Over Life Insurance?

Don't kick the can down the road. Contact us to make an informed decision about life insurance. We serve Berks County, Reading, Philadelphia, Harrisburg, Lancaster, Allentown, Pittsburgh, State College, Erie, York, and beyond with high quality yet affordable life insurance policies.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)

Don't kick the can down the road. Contact us to discuss your life insurance needs.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.

Tags: Life Insurance Berks Pa, Life Insurance Philadelphia Pa, Life Insurance Lancaster Pa, Life Insurance Reading PA, Life Insurance Allentown Pa, Life Insurance Harrisburg Pa, Life Insurance York Pa, Life Insurance