Archive for Insurance

How to Save Money on Home and Auto Insurance

Four ideas to save on your home or auto coverage:

1) Contact your agent when you retire or get laid off as you stop driving 20 miles or more to and from work. There is a discount for driving fewer miles

2) Insure your identity. It is available as a rider on many homeowner policies for about $25. Your insurer will work with police and credit bureaus to restore your name, and, reimburse costs related to restoring your credit.

3) Save around $100 per year with some insurance companies by installing a tracking device to monitor your driving habits.( for some of you this may end up costing your more :) )

4) Before you file a claim, talk with your agent to make sure it is valid. Some things are not covered and a bad claim in the database could make it tougher to file a later claim

Hope this helps….

Do you really need Life Insurance by Paul Ferraresi

Let’s face it. Most people put off buying life insurance for any number of reasons. Take a look at this list—do any of them sound like you?
1. It’s too expensive. In the ever-burgeoning budget of having a family, things like day care and car payments and possibly even college tuition eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you?
People with no life insurance overestimate its cost by three times. And even those who have coverage, overestimate its cost by two times.1 While it is an expense that you have
to budget for imagine what the financial impact would be
for your family if something were to happen to you and you had no life insurance coverage at all.
2. That’s that stuff for babies and old people, right?
Funny, recent surveys show that 71% of people say they personally need life insurance ,yet, only 51% have coverage.
3. I’m strong and healthy! You eat right, you stay active, and everyone admires how grounded and centered
you are. You passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor
indestructible. It’s not even that something could happen to you—though it could—so much as when you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall
seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.
4. I have life insurance through my job. Many people are offered life insurance as part of their employee
benefit coverage—and often, it’s the first time they encounter life insurance and have no idea that a $50,000
policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money (and it
is!), until you realize that it has to cover some or all of the expenses for your loved ones in your absence. Plus,
if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.

5. I don’t have kids. Sure, kids are a big reason why some people get life insurance. But that’s not the only
litmus test for needing protection. If there is anyone in your life who would suffer financially from your loss—
your spouse or live-in partner, a sibling, even your parents—a life insurance policy goes a long way in making sure everyone’s still okay even if something happens to you.
6. Life insurance—it’s on my list… eventually. There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”
If any of this sounds daunting, just know that it doesn’t have to be. Be sure to talk things through with your
Insurance agent. Your financial professional will help you figure out how much you may need, and find a policy that fits into your budget. There’s a policy to fit every budget, and a life insurance agent can help you find coverage that’s right for you.
Information for this article was provided by Life Happens, a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures:
www.lifehappens.org.
The opinions voiced in this material are for general information only and are not intended to provide
specific advice or recommendations for any individual. To determine which investments or products may be appropriate for you, consult with your financial professional.

Homeowner Insurance Policy Savings by Paul Ferraresi

*When you have property damage like plumbing or roof leak do something. Don’t let a small leak do more harm to your home. It is your responsibility to mitigate problems. Insures can refuse to pay for a loss you could have prevented.
* Insurance companies offer discounts for improvements that make your homes a better risk. These can include indoor sprinklers, smoke detectors and dead bolts. Contact your agent as you can be missing out on great discounts.
* Inform your agent about upgrades. Examples are new plumbing and electrical systems, or, burglar alarms. One client did upgrades and cut yearly premiums by $400.
* Think twice before filing a claim especially if it is less than $1000 above your deductible. The premium increase after a few years will be greater than the amount of your claim. The purpose of this type of policy is to cover a catastrophe not every nick. If you file 2 claims in a 3 year period you are sure to get a rate hike or they may even drop you completely.

Four Insurance Saving Tips

1) Contact your agent when you retire or get laid off and stop driving 20 miles or more to and from work. There is a discount for driving fewer miles

2) Insure your identity. It is available as a rider on many homeowner policies for about $25. Your insurer will work with police and credit bureaus to restore your name, and, reimburse costs related to restoring your credit.

3) Save around $100 per year with some insurance companies by installing a tracking device to monitor your driving habits.

4) Before you file a claim, talk with your agent to make sure it is valid. Some things are not covered and a bad claim in the database could make it tougher to file a later claim

How To Use Life Insurance In Your Retirement Planning – Article Recommended by Paul Ferraresi

Investing in the market without taking losses — is it too good to be true? Not according to the University of Michigan’s head coach Jim Harbaugh. In August, University of Michigan helped Harbaugh become the top-paid college football coach in the nation, according to USA Today figures, by creating a deferred compensation package utilizing cash value life insurance called Indexed Universal Life Insurance (IUL).
Just like in Harbaugh’s case, IULs appeal to many executives and business owners because of the advantages they provide. IULs allow cash value within the policy to grow tax-free over time. IULs are funded with post-tax dollars which allow clients to withdraw money tax-free at any age, and provide financial security in the form of a death benefit for the family after the client passes.
One of the main advantages of IULs is that the cash value is protected from drops in the market. An IUL is a cash value policy that has both a death benefit and a savings portion. In an IUL the investments are not placed directly in the market where they would be subject to a loss. Rather, they are put into a strategy that mirrors an index such as the S&P 500, which allows the participant to realize all or most of the gains in the market. These gains are then locked in to protect against potential losses.
In addition, when compared to an IRA or a 401(k), IULs provide more flexibility. Unlike IRAs and 401(k)s, there is no limit on how much money can be added annually, as long as the added cash does not create a Modified Endowment Contract (MEC), which is taxable. An MEC is where the funding has exceeded the IRS limitations known as the “7-pay test,” which limits the amount of excess cash that can be put into a policy in any seven-year period before it loses its tax advantages. IULs allow for a high cash value at the beginning of the policy. There are no restrictions on when the money can be taken out, unlike an IRA. Also, the money inside an IUL can be taken out at any age by the client tax-free and without extra fees.

An IUL is beneficial to those who are looking to invest their extra money tax deferred after they have fully utilized their other retirement accounts, such as a 401(k). IULs are also beneficial to those who clients who do not qualify for a Roth IRA. IULs provide an opportunity for individuals to allocate premiums to flexible and accessible tax-deferred accounts. For younger clients, savings can be rolled over from a previous retirement plan. IULs can also help people who started retirement planning later, due to the fact that an IUL can be over-funded, unlike a 401(k) or IRA, which have strict contribution limits.
Along with tax-free wealth building, IULs provide a source of financial security to the family in the event of death or disability. In an event of the death of the policyholder, the death benefit is received tax-free by the beneficiary of the policy in a lump sum. Some policies can be constructed to include living benefits in the event of disability or chronic illness. In this way, IULs provide a way in which individuals can grow and protect their income, as well as provide extra funds for retirement.
In the case of coach Harbaugh, an IUL was used to save millions in tax-free retirement. This was possible due to the growth of the cash value inside of the policy that increased his retirement funds, which are accessible tax-free at the age of 70. Upon being hired at Michigan, Harbaugh entered a split-dollar loan agreement, in which the premium, cash value and death benefit is split between two parties. This split-dollar agreement was funded by cash value life insurance policy or IUL.

Under this split-dollar agreement, the University of Michigan agreed to pay seven $2 million loan advances into a life insurance policy. By implementing this policy, Harbaugh does not have to pay back the loan taken on the policy until his death, and his beneficiaries will receive the remainder of the death benefit. While he is alive, Harbaugh is able to borrow money out of the policy tax-free. Through this plan, it is projected that Harbaugh could begin taking $1.4 million per year out of the policy tax-free, beginning at the age of 66.
IULs are a popular choice amongst clients who would like the gains of the markets without the losses, as well as protection for their family after death. This makes IULs a comprehensive and flexible wealth building option.
Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms.

Jacob Alphin, Author, (May 11, 2017). How to Use Life Insurance in Your Retirement Planning. Forbes. Retrieved from https://www.forbes.com/sites/forbesfinancecouncil/2017/05/11/how-to-use-life-insurance-in-your-retirement-planning/2/#16adc1593b1b