Archives: 2021

Options to Consider When Your Term Life Insurance Expires

Life insurance provides invaluable protection for your loved ones, but what happens when your term life insurance policy reaches the end of its coverage period? If you’re approaching expiration, you still have options to maintain financial security for your family. Understanding these choices can help you make the best decision for your circumstances.

Renew Your Existing Term Policy

Many insurance providers allow policyholders to renew their term policies without requiring a new medical exam. However, premiums are likely to increase significantly due to your increased age and potential changes in your health. While this option offers convenience, comparing costs with other alternatives before committing is essential.

Purchase a New Term Policy

If you’re still in good health, shopping for a new term life insurance policy can be a cost-effective way to maintain coverage. A new policy allows you to adjust the coverage amount and term length based on your financial needs. While premiums will be higher than when you initially purchased a policy, they may still be more affordable than other options.

Convert Your Term Policy to a Permanent Policy

Some term life policies offer a conversion option, allowing you to switch to a permanent life insurance policy without undergoing a medical exam. This ensures continued coverage, no matter what your health status. However, conversion options typically have strict deadlines and may only be available for a limited time before your policy expires. Fast action can help you avoid missing this opportunity if this is an option.

Invest in a Permanent Life Insurance Policy

Unlike term life insurance, permanent life insurance provides lifelong coverage and may build cash value over time. While these policies have higher premiums, they can offer financial stability for final expenses, estate planning, or long-term care needs. If maintaining coverage indefinitely is important to you, this option may be worth considering.

Consider a Long-Term Care or End-of-Life Policy

You should explore specialized insurance products if you are in a position where your primary concern is covering healthcare or end-of-life expenses. Some policies will allow you to use a portion of the death benefit for long-term care while you’re still alive, helping to manage potential medical costs.

Choose an Annual Renewable Term Policy

An annual renewable-term policy provides coverage year-by-year, allowing you to extend your life insurance for short-term needs. While this option can provide flexibility, premiums tend to increase annually, making it a less predictable solution in the long run.

Layer Multiple Policies for Comprehensive Coverage

Combining different life insurance policies may offer a balanced solution if your financial needs have evolved. For example, you could purchase a smaller whole life policy for lifelong coverage while supplementing it with a term policy to cover specific financial obligations in a particular period, such as a mortgage or college tuition.

Find the Right Coverage for Your Future

Letting your life insurance policy expire without securing new coverage can leave your loved ones financially vulnerable. Whether you need a new term policy, permanent coverage, or a layered approach, making an informed decision now can provide peace of mind for the future. Navigating life insurance options can be complex, but you don’t have to do it alone. Contact our experienced life insurance agents today to discuss your needs and find the best solution for you and your family.

When Should Small Business Owners Switch Insurance Companies?

Managing a small business comes with endless challenges—and great rewards. One of the main issues is keeping your overhead as low as possible. The cost of your business insurance should be reviewed yearly—savings could be possible. If you’ve been with the same insurance provider for years, you might assume you’re getting the best deal—but are you? Switching insurance companies can improve coverage, lower costs, and improve customer service. Here’s when and why you should consider changing, especially to an independent agency.

Signs It’s Time to Switch Business Insurance Providers

Poor Claims Experience

If you’ve had trouble processing claims efficiently or received poor customer support during a claim, it may be time to move on. Delays denied claims without clear explanations, or difficulty reaching your provider are all red flags.

Difficult Customer Service

If your insurer is unresponsive or unhelpful, you shouldn’t settle. Good insurance providers offer clear communication, self-service options, and responsive agents who prioritize your needs.

Your Agent Leaves or Retires

If your trusted agent leaves, you might find that the new representative doesn’t offer the same personalized service. If the agent who understood your business was the only thing holding you to an insurance provider that otherwise lacks potential benefits and offerings, this could be a good time to reassess your options.

Increasing Premiums Without Justification

Many large insurance companies apply rate hikes, even if your business has remained low-risk. If you have signed up with one of the biggest insurance companies, they can technically afford to lose your business. A smaller, independent agency may offer more stable pricing and competitive rates.

Lack of Customization

If your business has grown or changed, but your insurance coverage hasn’t evolved, you might be underinsured or paying for unnecessary coverage. Independent agencies often provide more flexible policy options and can respond faster than larger corporations.

Your Insurer Changes Terms

Sometimes, insurance companies change their coverage offerings, exclude certain risks, or stop servicing your industry. If your provider no longer meets your needs, it’s time to explore alternatives quickly. 

You Get a Better Recommendation

If another business owner you trust raves about their insurer, it’s worth considering. First-hand experiences can provide valuable insights into a company’s service, pricing, and claims process.

Benefits of Switching to an Independent Agency

Many small business owners assume that sticking with a big-name insurance provider is the safest choice, but independent agencies often provide distinct advantages:

• Lower premiums: Independent agencies typically have lower operating costs, allowing them to pass savings on to their customers.

• Personalized service: Unlike large insurers, independent agents take the time to understand your business and provide customized solutions.
• Greater flexibility: Smaller agencies offer more custom policy options, ensuring you only pay for what you need.
• Faster claims processing: Independent providers often have a reputation for handling claims more efficiently, with less red tape.
• Local expertise: Independent agents understand the risks and regulations affecting your region and industry.
• More stability: Unlike blanket rate increases, smaller insurers adjust pricing based on local market conditions and individual risk assessments.

How to Switch Business Insurance Companies

If you’re considering a switch, follow these steps to ensure a smooth transition:

Step One: Research New Providers

Get quotes from at least three companies and compare coverage, pricing, and customer reviews.

Step Two: Purchase New Coverage Before Cancelling the Old

Avoid any gaps in coverage by ensuring your new policy is active before ending your current one.

Step Three: Notify Your Current Provider

Start the cancellation process. Ask about any penalties, refunds, or outstanding claims.

Step Four: Obtain Proof of Insurance

Ensure you have updated insurance documentation for clients, vendors, landlords, or other necessary parties.

Step Five: Enjoy Better Coverage

Move forward with business operations, knowing you’ve researched and now have the best insurance policy to fit your needs and budget.

Considering Switching Insurance Companies? It’s Worth the Effort.

Switching business insurance providers can seem like a hassle, but it’s worth the effort if you’re paying too much, receiving poor service, or not getting the coverage you need. Independent agencies can offer better pricing, personalized service, and flexible coverage options—making them an excellent alternative to large insurers. If you recognize any warning signs mentioned above, now might be the perfect time to explore new possibilities and secure better protection for your business. Our independent insurance agency prides itself on customer care and satisfaction. Call in to speak to one of our business insurance agents and see how we can improve your coverage today.

The Hidden Costs of Skipping Insurance

This April is the 22nd anniversary of Financial Literacy Month, a time that inspires us to secure our future with sound financial planning, budgeting, saving, and investing. It’s an excellent opportunity to improve your financial education and be more secure in your goals. For example, many people are unaware of the hidden costs of skipping insurance, making them financially vulnerable.

Why Consider the Cost of Insurance in My Financial Planning?

Insurance delivers financial security by providing support during significant loss or danger. The apparent “cost savings” you may think you achieve by going without is often sadly misguided. Without proper insurance, one runs a high risk of financial setbacks. 

• High medical bills: Without health insurance, you’re responsible for the full cost of medical treatments, including emergencies, hospital stays, and prescriptions.
• Legal fees: If you’re involved in a car accident or lawsuit and lack proper coverage, you could face significant legal fees.
• Property damage: Without homeowners’ or renter’s insurance, you could pay for repairs or replacements after damage from weather disasters, theft, or accidents you have no way of predicting.
• Loss of income: In the event of an injury or illness, not having disability insurance could leave you without a source of income while you recover.
• Financial burden on family: Without life insurance, your family may struggle with expenses, including debt repayment, funeral costs, and day-to-day living expenses after your death.
• Penalties and fines: Some types of insurance are actually considered mandatory, like health insurance. They can carry penalties for non-compliance with state or federal regulations. 

Encouraging Long-Term Financial Stability: Types of Insurance

Getting familiar with the different types of insurance is a good idea. These policies can help you in your time of financial need to ensure long-term economic stability. 

Personal Insurance

Health insurance is vital for managing healthcare costs and ensuring access to necessary medical treatments. With the rising cost of medical care, health insurance helps cover doctor visits, hospital stays, prescriptions, and preventive care expenses. It also protects you from high medical bills, ensuring you receive the care you need without devastating financial strain. 

Life Insurance

Life insurance offers financial protection for your loved ones in the event of your death. It ensures your family can maintain their lifestyle and cover essential expenses, such as mortgage payments, education, and daily living expenses, even after you’re gone. Life insurance can also help with funeral expenses, reducing the burden on those you leave behind. With various policy options available, life insurance is essential for safeguarding your family’s financial well-being.

Car Insurance: A Legal and Financial Necessity

Car insurance isn’t just a requirement in most states—it’s also a safeguard against costly accidents. Without it, you could be held personally responsible for damages, medical bills, and legal fees. Even if you’re a safe driver, unexpected events like theft or severe weather can leave you with repair costs that far outweigh the price of a monthly premium.

Homeowners and Renters Insurance: Protecting Your Property

A home is one of the biggest financial investments you’ll ever make. Homeowners insurance protects you from disasters like fires, floods, and theft, preventing financial devastation and even homelessness.

If you’re a college student or your child is heading to university for the first time this year, moving into an apartment or dorm carries risks that can be covered by renters insurance. The landlord’s policy does not cover the cost of replacing your personal belongings should they be lost due to theft, fire, or other disaster. 

Pet Insurance: Avoiding Unexpected Vet Bills

Owning a pet comes with both love and responsibility. Veterinary care can be expensive, with emergency procedures costing thousands of dollars. A sudden illness or accident could force you to choose between financial hardship and your pet’s well-being without pet insurance. A monthly premium can help cover unexpected medical expenses, giving you peace of mind.

Travel Insurance: Essential for Summer Getaways

Planning a summer vacation in the next few months? Travel insurance can protect you from trip cancellations, lost baggage, and medical emergencies abroad. Without it, a sudden illness, flight cancellation, or lost passport could turn a dream trip into a financial disaster. Travel insurance costs are minimal compared to the potential losses you might face.

Insurance: A Smart Financial Decision

Going without insurance brings financial risks that far outweigh the savings. As we’ve covered today, insurance brings:

• Financial predictability – Helps protect against unexpected costs.
• Peace of mind – Ensures you’re covered in case of emergencies.
• Long-term stability – Prevents significant out-of-pocket expenses that could derail your financial goals.

This Financial Literacy Month, take the time to review your personal insurance policies and ensure you’re adequately covered. A little planning now can save you from major financial setbacks later.

If you want to enroll in new or expanded insurance coverage, contact one of our experienced personal insurance agents for a free consultation today. 

Tips for Choosing a Health Insurance Plan

Navigating health insurance can feel overwhelming, but choosing the right plan is important for your well-being and financial security. With so many options available, understanding where to start can make all the difference. This guide simplifies the process, helping you make an informed and confident decision.

1. Understand Your Coverage Options

Your healthcare choices depend on how you receive coverage. Options include:

• Employer-funded health plans
• Federal or state programs
• Private Insurance
• Medicare or Medicaid (if you qualify)

If your employer offers a health plan, this is often the most cost-effective option since companies typically contribute toward premiums. If employer-sponsored insurance isn’t available, you can explore plans through the federal or state marketplace at HealthCare.gov, where financial assistance may be available based on your income. Another option is purchasing private insurance directly from insurers, though these plans usually don’t qualify for government subsidies. Those who qualify may receive coverage through government programs such as Medicare (for individuals 65+ or those with certain disabilities) or Medicaid (for low-income individuals and families).

2. Compare Plan Types

Health plans vary in cost, coverage, and flexibility. The most common types include:

• HMO (Health Maintenance Organization): Typically, lower costs but requires in-network care and referrals for specialists.
• PPO (Preferred Provider Organization): Higher costs, but it allows you to see specialists without referrals and offers out-of-network coverage.
• EPO (Exclusive Provider Organization): No referrals are required, but you are restricted to in-network providers other than in an emergency.
• POS (Point of Service Plan): Requires referrals but provides some out-of-network coverage.

Think about how often you visit doctors, whether you need specialist care, and how much flexibility you want when choosing a plan.

3. Check Provider Networks

Every insurance plan has a network of doctors, hospitals, and specialists that accept it. Seeing network providers saves you money, while out-of-network care often comes with higher costs or isn’t covered at all.

If you have preferred doctors or medical facilities, check whether they accept the plan before enrolling. Those who travel frequently or live in rural areas may benefit from a plan with a larger provider network.

4. Look Beyond the Monthly Premium

While the monthly premium is a key factor, other costs can significantly impact what you pay for healthcare. Be sure to consider:

• Deductible: The amount you must pay before your insurance starts covering expenses.
• Copays and Coinsurance: The portion you pay for doctor visits, prescriptions, and medical services.
• Out-of-Pocket Maximum: The highest yearly cost before your insurance kicks in and covers the cost.

Choosing a plan with a higher premium but lower out-of-pocket costs might be worthwhile if you expect frequent medical visits. Conversely, a lower-premium plan with a higher deductible may save you money if you’re generally healthy.

5. Evaluate Additional Benefits

Some health insurance plans offer extra benefits that could make a big difference in your coverage. If these things are important to you, be sure to look for plans that include:

• Prescription drug coverage
• Mental health and therapy services
• Maternity or fertility treatments
• Preventive care, wellness programs, or telemedicine options

Contact the provider’s customer service before enrolling if you’re uncertain about what a plan covers. Asking detailed questions now can help you avoid unexpected expenses later.

Choosing The Right Plan for You

Choosing the right health insurance plan requires careful consideration of your medical needs, budget, and provider preferences. Taking the time to compare options and understand key details can lead to better coverage and long-term financial security. If you need help with a side-by-side comparison of potential healthcare options, our healthcare insurance agents are more than willing to assist. Call our office today to schedule an appointment to discuss the best plan for you. 

6 Reasons Why Water Heaters Fail

It’s no fun going without hot water. That’s especially true when the seasons change and temperatures take a dip. But like nearly every otherappliance in your house, water heaters fail. And that can lead to cold showers — or even worse, a water leak. Here are 6 telltale signs you have a failing water heater: You only […]

Why Would I Need Life Insurance for My Child?

There’s a lot to think about when your family is growing. Whether you’ve recently welcomed a child through birth, adoption, or marriage, the future may feel full of unknowns. You do everything you can to keep your child safe—installing car seats, covering electrical outlets, and using baby gates—but have you considered how life insurance could be another way to protect them?

While it’s not something many parents think about, life insurance offers more than just financial protection in the event of the unthinkable. It can also give your child future security and financial opportunities as they grow.

What Are the Benefits of Juvenile Life Insurance?

There are three primary reasons parents choose to purchase life insurance for their children: guaranteed coverage regardless of future health, the ability to lock in lower premiums, and access to cash value that can be used later in life.

Guaranteed Coverage for the Future

Health can be unpredictable. A childhood illness, medical condition, or disability could make it difficult—or even impossible—for your child to qualify for life insurance as an adult. By purchasing a policy now, you can ensure they can maintain coverage for years.

Many juvenile life insurance policies include a guaranteed insurability option (GIO) or a guaranteed purchase option (GPO). These riders allow your child to increase their coverage at specific times in the future, regardless of any changes in health.

Locking in Lower Premiums

Life insurance rates are at their lowest when the insured is young. By securing a policy now, you can take advantage of lower premiums and lock in an affordable rate for the duration of the contract. You may want to consider purchasing a policy:

• At birth – This is when premiums are typically at their lowest.
• Before age 18 – Securing coverage before adulthood can provide long-term financial protection, even if your child develops a health condition later.

Cash Value for Future Opportunities

Permanent life insurance policies accumulate cash value over time. This savings component can help cover major expenses, such as a down payment on a first home, college tuition, or even retirement savings. The flexibility of this benefit makes life insurance a potential financial tool for your child’s future.

Choosing the Right Type of Life Insurance for Your Child

Different types of permanent life insurance can provide long-term benefits. The right choice depends on your family’s financial goals and needs.

• Whole Life Insurance: This policy provides lifelong coverage with guaranteed cash value growth, regardless of market conditions. Premiums remain fixed, making it a stable option for long-term planning.
• Universal Life Insurance: Offering more flexibility, this type of policy allows for adjustable premiums and coverage amounts. It also builds cash value, which can be borrowed against for future needs.
• Variable Universal Life Insurance: This policy includes investment options, allowing more significant cash value growth. However, it also carries more risk due to market fluctuations.

Is Life Insurance for Your Child the Right Choice?

Every family’s situation is unique and deciding whether to purchase life insurance for your child is personal. While it may not be necessary for everyone, it can be a valuable tool for financial security, providing long-term economic benefits. If you’re considering a policy for your child, an experienced professional juvenile life insurance agent can help you explore options and determine the best plan for your family’s needs. Give our office a call to schedule a free consultation today.

The Beginner’s Guide to Short-Term Rentals

From a stylish urban loft to a cozy country cottage… booking a short-term stay is a hot trend (and a great way to travel like a local.) Maybe you’ve considered becoming a host yourself. If so, you’ve probably wondered: Is it safe? Can I actually make money doing this? What amenities should I offer my […]

3 Business Insurance Expenses to Write Off on Your Taxes

It’s tax season once again! As a business owner, you are likely looking for ways to maximize deductions and reduce taxable income. Fortunately, several business insurance policies qualify as tax-deductible expenses under IRS rules. If an insurance policy is both ordinary (common in your industry) and necessary (helpful for business operations), you may be able to deduct the full cost of the premium. Help protect your business while optimizing your financial strategy with these three tax write-off possibilities. 

General Liability Insurance: Protection Against Lawsuits

Every business faces risks, from customer injuries to accidental property damage. General liability insurance helps cover legal costs, medical expenses, and settlements if your business is sued. Fortunately, your premiums for this policy can be deducted as a necessary business expense.

Why Is General Liability Insurance Tax Deductible?

• It’s a fundamental cost of doing business, protecting against unforeseen claims.
• Most commercial leases and contracts require businesses to carry this coverage.
• It helps mitigate financial losses from lawsuits, preventing potential bankruptcy.

How Much of My General Liability Insurance Premium Can I Deduct?

The full cost of your premium is typically deductible, provided the policy is for business purposes only. If you use the insurance for a business that operates from home, you may need to allocate only the business portion of your premium as a deduction.

Workers’ Compensation Insurance: Protecting Your Employees

If you have employees, you’re likely required by state law to carry workers’ compensation insurance. This coverage provides financial support for employees who experience work-related injuries or illnesses. The good news? The premiums you pay for workers’ compensation insurance are tax-deductible.

Why Is Workers’ Compensation Insurance Tax Deductible?

• It’s legally required for most businesses with employees.
• It helps cover injured employees’ medical expenses, rehabilitation, and lost wages.
• It reduces financial risk in the event of workplace accidents.

How Much Can I Deduct Workers Compensation?

You can deduct the full amount of your workers’ compensation premiums, provided the policy strictly covers employees (not personal coverage for yourself). Take the example of a construction company in California that had an employee suffer a fall on-site. Because their policy was intact, workers’ compensation insurance covered the employee’s medical expenses and some of their lost wages. Not only did the business avoid a significant financial hit, but it was also able to deduct the cost of the insurance premium on its taxes, lowering its overall tax burden.

Business Interruption Insurance: Safeguarding Against Revenue Loss

Unforeseen disruptions—natural disasters, fire damage, or forced closures—can significantly impact your revenue. Business interruption insurance helps replace lost income during these events, ensuring financial stability. The IRS considers this coverage an essential business expense, making the premiums deductible.

Why Is Business Interruption Insurance Tax Deductible?

• It compensates for lost income if your business cannot operate due to covered events.
• It covers rent, payroll, and operating expenses during forced closures.
• Many businesses rely on this coverage to stay afloat after disasters.

How Much of My Business Interruption Insurance Can I Deduct?

The entire premium for business interruption insurance is typically deductible, provided it is solely for business use. Take the example of one insurance client in Florida who was forced to shut down for several weeks due to hurricane damage. Business interruption insurance covered lost income, rent, and payroll costs, allowing the restaurant to recover. By deducting the premium cost, the business further minimized its tax liability. This brings a double benefit when it comes to recovering from unforeseen costs. 

Maximizing Your Tax Deductions with Business Insurance

Writing off business insurance premiums on your taxes is a smart way to reduce taxable income while ensuring financial protection. When filing your taxes, consider working with a tax professional to ensure you take full advantage of all eligible deductions. By investing in the right insurance policies, you’re not only protecting your business from risk but also making a financially responsible decision that benefits you during tax season. Contact one of our business insurance agents to review or expand your coverage. We are also available to answer any questions regarding your policy if you believe it covers personal and business risks. 

Are We Getting Enough Sleep to Safely Drive?

Sleep-deprived drivers are turning America’s roadways into danger zones with potentially costly consequences. That’s according to the findings of a new survey sponsored by Erie Insurance examining drivers’ sleeping and driving habits. The survey found that a majority of Americans are sleeping fewer than seven hours per night, the minimum nightly amount recommended by the […]

6 Things NOT to Say During a Job Interview

Whether you’re right in the thick of it with job interviews or you’re prepping for a future career change, knowing what to say — and more importantly, what NOT to say — during an interview can sometimes make or break your chances. So, to help avoid any awkward moments while also impressing your interviewer, review […]