What An Insurance Consultant Wants

Here is a letter I wrote that was published in Agent & Broker Magazine in 2005. The points still hold true. Insurance agents need to improve their approach.

What an Insurance Consultant Wants

I just got an email note from Agent & Broker with suggestions on how to sell insurance with a laptop computer. To agents out there, I'm begging you! Leave the computer in the car!

I work with more than one hundred agents every year. My role is to help the insurance buyer with the insurance transaction. I bid coverage, work with agents on new policies and negotiate renewals for my clients. I never sell insurance. I only work for insurance buyers.

Several times in the past five years agents have brought their laptops into meetings. Some have used the computer for note taking. Several have made presentations. Every time the computer was used it caused some kind of disruption. The agent needs a plug or we have to wait while she boots the machine. Pull out a pad and paper! Take notes on a checklist form! Bring me a well thought out, complete proposal on paper. You don’t even need to bind the thing unless its more than ten pages long – a staple is fine. I want quality not glamour.

Think about the reader when you prepare a proposal.

I'm not impressed with your computer ability. I'm not astonished by your use of PowerPoint. In most cases it’s poorly done or the technology fails. My experience is that computer proposals waste time – yours and mine. Hand me the proposal and show me the value of doing business with you. Show me the exposures you identified and the unique coverage you have designed. That will impress me. Tell me why I should do business with you. Tell me why you are different and better than other agents. Lets have a detailed conversation about our client and how you can help.

By the way, I don’t care if your agency has been around since 1895! I want to know what you are doing for your clients now. What makes you and your agency valuable to me any my client?

Show me what a great insurance person you are by your knowledge of coverage and our client’s exposures and needs. Show me what a great agency you have by returning my calls quickly. Prove your value by replying to my emails. Promise me you’ll return my call in 90 minutes or return my email request in one day. That is something I can use!

If you want to wow me with technology put stuff on your website that provides useful information. I was on an agent’s web site the other day that didn’t even have the agent’s phone number on it! Dump the glitzy flash on your website and tell me the emergency after-hours contact info for your claims department.

Learn how to use the technology you have! Email is a wonderful tool. I still run into agents who refuse to use it! How much business am I going to do with them? Learn how to use spreadsheets so you can give me an analysis of our client’s property rates over the last five years. Learn how to use ModMaster so we can analyze our client’s workers' compensation experience modification. Figure out how to leave an intelligible message in voice mail.

Leave the computer at the office and get back to the basics of providing exceptional insurance service and value for your clients.

Scott Simmonds, CPCU
Insurance Consultants Of Maine, Inc.
Saco, Maine

Insurance Issues of International Business

Traditional business insurance plans are inadequate for companies active outside the US and Canada. Here we summarize some of the coverage issues that need to be addressed for the international business.

Property Insurance Concerns

Standard property insurance policies have severe coverage territory limitations. Most policies cover property located only in the U.S. and Canada. Cargo policies should also be reviewed for proper protection. Computer equipment taken on business trips may not be covered overseas.

Liability Coverage Problems

General liability insurance policies provide only limited protection for events that occur outside of the U.S. or Canada. Products liability claims are covered anywhere in the world as long as the product was manufactured (or sold) in the U.S. or Canada and the product was intended for use in the US. Any suit must be brought in the US. Products liability actions brought in foreign courts are not covered by the general liability insurance policy.

Workers' Compensation Issues

Workers' compensation insurance policies provide coverage for citizens of the US and Canada that are temporarily outside of the country. Problems exist with the definition of the word "temporarily". Coverage is not provided for repatriation of employees who die while on foreign assignment or who require special transportation for injuries or illness that strikes while overseas. Endemic disease is not covered.

Auto Insurance Issues

Commercial automobile insurance policies provide liability protection in the United States, its territories and possessions, Puerto Rico, and Canada. Auto accidents that take place in any other part of the world are not covered.

The Solution

Any business who participates in trade or travel outside of the United States or Canada needs to analyze the unique exposures presented. A detailed review of the coverage provided by the current insurance policies is necessary to determine what insurance action should be taken. Special "International Insurance Plans" are available from many insurance companies at premiums that are quite reasonable. These policies can be tailored to meet the specific needs of the organization.

Cutting costs: Saving on insurance

By TEDDYE SNELL

These days, it seems everyone is looking for ways to save money.

Some may cut out entertainment, others may reduce the use of their vehicles.

Others still look for more innovative ways to save money. One way could be to review insurance policies - homeowner or renter, vehicle and life insurance - and shop around for better rates.

According to Chemain Evans, writer for SimpleJoe.com, and expense-tracking Website, by not shopping around, many people end up overpaying for insurance by as much as hundreds of dollars.

"Most of us have a hard time getting excited about shopping for different insurance, but a little time invested can go a long way in saving you money," said Evans. "Of course, the cost of premiums isn't the be-all-end-all; quality of service, quick response to claims, and financial soundness are all important factors to consider."

Shopping for insurance can be time-consuming, but in the end can save a substantial sum. Evans recommends asking friends, checking the Yellow Pages, or calling the state insurance department for recommendations. Insurance information for Oklahoma can be accessed via the Internet at www.naic.org/state_contacts/sid_websites.htm.

"This will give you an idea of price ranges and tell you which companies have the lowest prices," said Evans. "But don't consider price alone. The insurer you select should offer a fair price and deliver the quality of service you would expect if you needed assistance in filing a claim. So talk to a number of insurers to get a feeling for the type of service they give. Ask them what they would do to lower your costs. Check the financial ratings of the companies with AM Best or Standard and Poors."

It's also important to compare other insurers against current policies. When comparing companies, have your current policy handing when calling so you can compare apples to apples. If you do find a better policy, make certain it's in effect before dropping the old one.

Bronwyn Duncan had her policies with Progressive - a company that is well-known for it TV ad campaigns featuring lower prices. However, when she shopped around, she found by insuring her home and car with a local agency, she would save hundreds annually.

"With my insurer, if you have both your home - or renter's - insurance and your car insurance listed, if you go three years without a claim, you get 25 percent of your premium back in a lump sum," said Duncan. "I dropped Progressive and am saving over $600 a year in premiums."

Duncan has her insurance with John Rozell, a local agent for American National, and he confirmed the premium bonus.

"We have what's call a cash-back claim fund and you get 25 percent of your annual premiums back if you have no claims in three years," he said. "And that's not handled by a rebate on premiums, it's handed to you in a check. Our customers love it, and I'm really excited, because at the end of this year, I'll qualify for my check from the same fund."

Evans recommends using the same insurer for multiple policies for the same reason.

"Whenever possible, buy your home and auto policies from the same insurer," he said. "Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying different coverages from different companies."

Longevity is also key when saving on premiums. If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. This is why it's important to compare rates against your current policy.

Get more life insurance and avoid buffets

January 21, 2009
Many people have been accused of bragging about their health problems and their grandchildren in that order. I love to talk about my grandgirls, Gracie and Marie. My medical record is my own personal business. Here is a story that I just have to tell:

While eating breakfast in a hotel dining room in Naples, Fla., I heard a man who looked half my age announce that his cholesterol was 350. His plate was full with at least three servings of scrambled eggs and a mound of bacon. He had a side dish loaded with sausage gravy. Did I mention that it was a free buffet?

The young man was loud enough to be heard five tables away. He laughed his way through the eggs and bacon while proclaiming that he refuses to take cholesterol medications. His grade school-age children and 30-something wife sat the table across from him while he discussed the condition of his arteries with a complete stranger.

I wanted to find a stale, dry, bran muffin and shove it in his mouth. His wife made a big deal about the children eating a non-sugar cereal and going without maple syrup on their waffles because "it wasn't good for them."

FYI -- a person with a cholesterol reading over 200 is considered a potential cardiac high risk. This blood level reading is not the complete story. A trained professional requires more specific readings to properly analyze the danger of heart-related problems.

The loud man was announcing that he plans to use diet and exercise to control his cholesterol. Since this incident occurred at the beginning of January, he resolved to visit the gym more often and lose about 40 pounds. Good for him.

I listened to his bravado and watched his lovely wife cringe at his words. I asked my own dear husband, "What should I do?" The guy was being a jerk and he was letting the entire breakfast crowd get a glimpse of an obnoxious personality.

Here are a few things I wanted to say: "Get a life and stop gloating over an unhealthy lab value;" "Buy yourself more life insurance -- your wife will need it;" "Go outside and start exercising now or I will chase you down with broccoli spears and bananas;" "I'm aiming for your heart with this oatmeal bran cereal that I have loaded in my straw, ready to blow your way;" and "Have you hugged your dietitian today?"

Have you ever met a person like that? They are so ignorant of healthy facts that they embarrass everyone around them. Against my better judgment I left the dining room in silence.

Diet and exercise can help decrease an elevated cholesterol level. The healthy combination of active movement and a healthy weight, all while eating a low-fat meal plan, will reduce the risk of heart disease.

If you know someone who talks a lot about changing health habits but continues to abuse their body in spite of elevated lab values, I know that life is difficult. Get them to eat more fiber; they may have problems with constipation. Also, think about increasing their life insurance policy and avoid breakfast buffets.

How much life insurance is enough?

By Harry Gross
Dear Harry: We are both 30, and we have a combined income of $90,000. We own our own home with a $200,000 mortgage. Even today, it's worth more than the $250,000 we paid for it. We had a long discussion with a financial planner last week who suggested that we buy enough term insurance to cover the mortgage and a year's salary. He suggested increases when we have children. He also made some very reasonable recommendations regarding our 401(k) plans that we have already adopted. What do you think of the insurance idea? Neither of our employers has life insurance for employees as part of the company-benefits package.

What Harry says: It's a rare occasion when I hear of life-insurance proposals that are less than I think people need, but that's the case here. My suggestion is that you have "first to die" insurance for $500,000. This will give the survivor enough to get a fresh start. I do not like life insurance that is specified for a particular purpose - such as paying off a mortgage. There may be more pressing needs when the death occurs. There is another insurance need that you did not mention: disability-income insurance. At your ages, it is far more likely that one of you will be totally disabled for at least 90 days than that one of you will die. Your employers may very well have taken care of this for you. If not, be sure to get covered for at least two years for at least 60 percent of your salaries. As a matter of making sure you are dealing with secure companies, make certain that the companies you choose are qualified to write the policies you choose on New York residents, as well as on Pennsylvania residents. *

How Much Life Insurance Do You Need?

By Motley Fool Staff
January 23, 2009

To put it simply, life insurance protects those who depend on your paycheck. If you die prematurely, life insurance provides your dependents with ongoing income to replace yours, until (or unless) they can live comfortably without it. It can also provide a timely emergency fund for medical, legal, and funeral costs should family savings not be adequate to cover them. (After all, that golf-inspired Fairway to Heaven casket ain't cheap.)

Life insurance is not a good way to strike it rich for "pennies on the dollar." It's not the surest way to leave a life of luxury for future generations of your clan. In fact, even though some life insurance policies are combined with a savings plan (in "cash value" policies), the savings plan is essentially independent. The life insurance component of these cash value policies retains its fundamental purpose: income protection for your dependents after you join that great hokey-pokey in the sky.

So, should I get some?
Given this simple definition of life insurance, it should be easy to decide whether you need it. Start by imagining yourself gone tomorrow. (We know, it's morbid, but bear with us.) What would the impact be? And could we have your CDs?

Could your family afford the funeral expenses? Have you left a complicated will, or perhaps no will at all? More importantly, what about your spouse, children, and other dependents? Are they counting on your paycheck in the years ahead to cover basic needs and/or future savings goals? If you are the primary caregiver to dependents, what will it cost to replace you with a paid provider, and for how long?

If you are single, or one half of a two-income, no-dependents household, you probably won't need much life insurance, if any. With a little planning, you can establish a low-risk savings fund to cover funeral costs, and invest the money you would have paid for insurance premiums. You may also want to obtain coverage that will pay the estate taxes on a huge estate so heirs don't have to liquidate assets at unfavorable prices to pay them. If you are right now (or think you will be) a successful investor, then you may be a prime candidate for such life insurance. These issues can get complicated, and may be best left to a discussion with an estate planning attorney.

On the other end of the spectrum, if you are the sole breadwinner for a large family with little savings, you are likely to need substantial life insurance. After basic food and housing is covered, life insurance premiums are likely to be next in line in terms of priority, perhaps even ahead of auto loan and credit card payments, and certainly ahead of retirement savings (not to mention satin Elvis bed sheets and Beanie Undies).

Unclaimed Property Liabilities

What are your responsibilities regarding unclaimed property?

-Uncashed payroll checks
-Checks to vendors that are uncashed
-Account receivable credit balances
-Unused gift certificates

Business Finance Magazine recently summarized the major points of a book by Tracey Reid, Unclaimed Property: A Reporting Process and Audit Survival Guide (Wiley and Sons, 2008).

The book estimates that only 10% of US companies are compliant with various state laws. By some reports state auditors are going after businesses looking for unclaimed property as a source of revenues. How would your firm do in such a review?

Can you say, "Fines and Penalties?"

Life insurance for those with health problems

When applying for life insurance, many companies will require you to take a physical exam and ask you to fill out a questionnaire regarding your lifestyle. Ill health and habits such as smoking often result in higher insurance premiums. If an insurance company feels that you are too great a risk, they may deny you coverage altogether. However, there are many companies who offer policies specifically developed for people with poor health. While the cost for coverage may be higher than many average premiums, it may be worthwhile if you must provide for dependents or funeral costs. Remember, it is always important to be truthful when filling out an insurance application. If you fail to notify your insurance company about a pre-existing condition, they may cancel your policy. For more information, contact an insurance company or agent.

©2006 Crossroads Mobile. All rights reserved.

Top Picks in Life Insurance

As our focus this week is on Insurance, our top picks from our roundtable discussion on Life Insurance. This sector was hard hit by the financial turbulence of 2008, but the analyst we spoke to did have a few picks in this space:

* “Aflac (AFL) is our top pick. It’s a very solid, protection-focused company. You get a very reliable EPS stream that is not market sensitive, and from a credit perspective they do relatively well. I think I said before that no insurance company is perfect but their more risky exposure is concentrated exposure to bank and financial debt from Europe and Japan.”

* “My top pick is Assurant (AIZ). It’s a specialty insurance company as well. It’s got four or five niche oriented businesses, and no equity sensitivity in their earnings stream either. They’ve benefited in one of their businesses from the housing crisis. It doesn’t seem like anybody in the insurance business should benefit from a crisis, but their specialty property business has tripled in size in about three years owing
to higher mortgage delinquencies and default rates.”

* “Reinsurance Group of America (RGA). It’s a pure play life reinsurance company. It’s not quite as cheap as it was maybe a month or two ago when they raised some equity, but their equity raise was much more about a proactive opportunity to take advantage of some new business opportunities here as a bunch of the primary life insurers are looking for opportunities and ways to relieve capital strain, unlock capital.”

6 Tips to Save on Insurance Costs

More than other age groups, people over the age of 65 are reluctant to consider changes in their insurance needs, according to a national survey of homeowners by Trusted Choice and the Independent Insurance Agents & Brokers of America.

Overall, nearly 24 percent of Americans have made changes to their auto, home, life, or health insurance coverage in the past year in order to reduce costs; 18 percent have considered such changes in the past few months; and 33 percent would consider insurance cutbacks in 2009. The overwhelming reason for the reductions is the sorry state of the economy.

Compared with those overall responses, however, older consumers were less likely across the board to make reductions. Only 9 percent of respondents ages 65 and older had made insurance reductions in the past year; 12 percent had considered them recently; and only 10 percent said they would consider them in 2009.

According to the 2007 survey of consumer household expenditures by the U.S. Labor Department, average after-tax income of households led by people ages 65 and higher was about $39,180. Of this amount, health insurance spending averaged $2,770, car insurance cost $975, and $329 was spent on life insurance and other types of personal insurance.

There was no breakout for home insurance, but even without that expense, average insurance payments were about $4,700, or more than 10 percent of after-tax income. By comparison, annual household spending on food—including food at home and meals away from home—was only $4,515.

So, while older consumers might be reluctant to reduce their spending on insurance, they should think about whether some wise trims can be made without sacrificing their key insurance safeguards. Here are tips for where to look for auto, home, life, and health insurance savings:

1) Many seniors have older vehicles and do not need expensive low-dollar deductibles for collision and comprehensive coverage. Consider selecting higher deductibles. However, do not scrimp on liability protection or uninsured motorist coverage. More people are dropping their car insurance because of the tough economy, so you need to make sure you're covered should you be in an accident with an uninsured driver.

2) Some insurers have responded to last summer's $4 gasoline by expanding their reduced-driving discounts to better serve people who have cut back on their driving. If you do not drive many miles, you may qualify.

3) When you rent a car, odds are you do not need rental-car insurance and can rely on your existing car insurance policy to protect you. You will, however, be on the hook for the deductible payment should you be in an accident that is your fault.

4) Inflation protection is a must-keep feature of home insurance, but like millions of seniors who have downsized, you may have reduced your possessions. Review whether you still need special riders on jewelry, furs, computers, and other items.

5) Life insurance is designed to help loved ones, providing them money to replace the income lost by your death and helping to conserve assets in your estate should you have enough wealth to trigger estate taxes. As we age, the protective objectives of life insurance diminish and you may not need as large a policy.

6) Substitute generics for brand-name drugs. The U.S. Food and Drug Administration has a tool to identify generic equivalents of brand-name prescription drugs. Use it and see if you can save money

Life Insurance - Do I Need It?

“I'm a single twenty-something with two properties both of which are mortgaged. One is an interest-only mortgage, the other is a repayment mortgage. I have life insurance policies in place over both properties along with a benefit in work of four times my annual salary should something happen to me. I have no dependants and feel that I am perhaps a little over-insured.

My works policy would cover the cost of both of my properties (or certainly a large part of it even in the current market) and I'm wondering whether I actually need the two other life assurance policies. I have accident, illness and redundancy insurance in place as well.

Is anyone able to help?”

Many people in the UK don’t have nearly enough life insurance to cover their protection needs. That said I think it’s equally important to talk about the possibility of having too much insurance and therefore, paying out for a policy you don’t necessarily need.
When do you need life insurance?

Generally-speaking if you have people in your life who depend on you financially -- whether it’s your partner, your children or someone else -- then it’s a good idea to take out enough life cover to provide for your family’s financial well-being should the worst happen to you. (Take a look at A Fool’s Guide To Life Insurance to figure out how much you need and Eleven Reasons Why You Need More Life Cover for a rundown of all the key life stages when your protection needs might increase.)

But Kinios doesn’t have any financial dependants right now, so this is not a consideration.

Still, before any policies are cancelled, Kinios should think very carefully. There may not necessarily be an obvious need for life cover right now, but that doesn’t mean a requirement for protection won’t arise in the future.

As Fool poster JoeEasedale says:

“It does look as though you have more life insurance than you may need at present. However, a thought for your consideration before you give some up. You will never be able to get life cover as cheap again, in that it costs more, the older we get. Therefore if you think that you may have offspring or a significant other to provide for in the future, keeping on what you have may take on a whole new value.”

(Read JoeEasedale’s full answer and others here.)

I agree with JoeEasedale’s comments. As Kinios is under 30 -- and I assume in good health -- the premiums for these life insurance policies are likely to be relatively cheap. After all younger people are less likely to claim than older people, so the premiums paid will normally be lower, all things being equal.

The Fool’s life insurance search engine shows that someone aged 25, for instance, could buy £100,000 of life cover for less than £6 a month. However, someone buying a life policy aged 40 might pay more than double for the same amount of cover*.

If the premiums are affordable then there’s certainly an argument for keeping the cover in place should Kinios’s need for protection increase in the future.

Kinios should also bear in mind that, while death in service of four times salary provided by the employer is a valuable benefit, the cover it offers will only last as long as Kinios works at the same company. It is possible Kinios may move to a new employer in the future where death in service is no longer part of the remuneration package. So, for this reason, this type of protection should not be relied upon too heavily.

Kinios may also want to speak to an independent financial advisor before cancelling the policy, to get professional advice on these individual circumstances.
Accident, Sickness and Unemployment

Kinios also mentions an accident, sickness and unemployment (ASU) policy. ASU comes under the infamous Payment Protection Insurance (PPI) banner. Regular Fool readers will know PPI has been much-criticized for the poor value it offers policyholders and the difficulty in making successful claims. If you’re not familiar with PPI mis-selling, read this article written by my Foolish friend, Neil Faulkner.

I would suggest Kinios’s main priority is to look at how much the PPI policy costs. Although Kinios doesn’t specifically say, I would guess the PPI plan has been bought alongside the two mortgage loans to cover the monthly repayments if they become unaffordable as a result of an accident, sickness or unemployment. If the policy was sold by the mortgage lender(s) it may well be expensive.

PPI sold by independent insurers -- rather than mortgage lenders -- can often provide a better value deal and this is something Kinios should look into more closely.

Kinios may not have dependants yet but, as a single person, I think it’s crucial some income protection remains in place. Kinios could consider an Income Protection Insurance (IPI) policy or Critical Illness Cover (CIC) as a more comprehensive alternative to the PPI plan. My recent article Why It’s Vital To Protect Your Income outlines the main differences between the two.

That said neither IPI nor CI provide insurance in the event of redundancy, so again, I think it’s a good idea for Kinios to speak to a good independent financial adviser who will make sure all protection needs are adequately covered.

How to choose the right life assurance cover

While majority of people usually ponder on taking a life insurance cover, there is always an outstanding question which mutely follows unanswered and that is “How much is the value of my life?”
Even though this question has been a head-scratch to many, only few have been candid on discussing it with others, ending up picking an arbitrary value as life insurance cover to replace the income they expect to make between now and retirement. Some have even gone further to buy only enough life insurance to cover your present debts.
However, though you probably can do all of those, calculating a sufficient life insurance cover would require you to do an inventory of all of your finances, and forecast on your commitment to enable your beneficiaries to maintain their lifestyles without you.
When drawing up your financial plan and choosing life assurance products with assistance from your financial adviser, you should work out how much life cover you need.
Usually it is imperative you do this so that your dependants are not left with an income deficit should you die.
The primary purpose of life insurance is to provide risk cover that offers financial protection to a policyholder’s dependants in the event of the policyholder’s death.
One needs to have enough life insurance so that his or her family can continue with their current lifestyle even if the breadwinner passes away.
Like every financial decision, life insurance shouldn’t be arbitrary in that if you under-insure, you risk causing financial hardship to your dependants; if you over-insure, you waste money paying for something you don’t need.
The amount of insurance you need depends on your personal circumstances, which comprises of many variables. Before any commitment, you should assess your life assurance needs with an emphasis of having sufficient life assurance for your family to maintain their standard of living when you die, but not about making your family rich.
Because life assurance comes at a cost, and should be in place to protect and provide for your dependants, if they have grown up and become financially independent, you should reassess your life assurance requirements.
Therefore, the value of a sufficient cover can be almost any number and will depend on personal circumstances, the needs of your family and dependants, and quite simply, how much you can afford in monthly premiums.
Though no universal method has been approved for calculation, pundits say the best way is through a needs-based analysis, which can be broken down into a simple formula: add your short and long-term debts and your family maintenance expenses and subtract your resources from your total expenses to arrive at the right amount of cover.

Short-term need
In this case, short-term needs would include final expenses such as medical, hospital, and funeral expenses, executor fees, probate court costs (if you do not have a will), and any outstanding taxes that would need to be paid if you died with outstanding debts.
This is then followed by calculation of family maintenance expenses including such necessities as childcare, food, clothing, utility bills, entertainment, travel, and transportation. This is done based on a year’s worth of expenses multiplied by the number of years you want to provide this income.
To this, add your long-term debts, which include your mortgage and college tuition. Calculating an education fund would prove a daunting task because you have no idea where your children will be going to college.
However, the best method is to use the present average college cost and the number of years remaining for your children to join college. This should factor in the increased costs of education each year.
Now you’ve a tally of income needs. It would be prudent to take an inventory of resources you have to meet them.
To do this, add all available savings, stocks, bonds, mutual funds, existing life insurance (such as group life through your employer), and social security.
Also add your present salary, and assume five per cent compounded interest each year if you expect salary increases over time. It’s vital to count only liquid assets (those that could be quickly converted to cash).
You shouldn’t count items such as your home or automobile, because selling them for cash when you’re gone would mean changing your family’s lifestyle. To this, add short and long-term debts and family maintenance expenses and subtract resources from total expenses.
The figure you get should represent the sum assured of the life insurance. It is at this time that the affordability of the quoted premium will be emphasised by the prospect
But while doing the math, consider that the future value of money is essential, especially with the eye on the inflationary pressures or what the death benefit will be if the money is invested at a given interest rate.
Experts say an analysis should be done at least once every three years or when there is a major life change.
For example, if you have a new baby, you have to recalculate college education needs and child-care costs. If you own a home, a mortgage is likely your biggest financial burden. Because your mortgage balance decreases with each payment, it’s important to include revised figures in your calculations.

Temporary cover
With this calculation of the human life value, you can assess whether your group life cover offered by the employer is adequate and if insufficient to consider an addition to bridge the gap.
But as the routine goes, a group life cover resembles an apron that is worn only while on duty and is usually replaced with a decent etiquette when on a serious travel outside the office.
This implies that a group life cover acts as a temporary cover when in employment. But with an additional cover, you would be able to enjoy benefits even while outside the employer’s service.

Documentation Documentation Documentation

-What did you know?

-When did you know it?

-What did you do?

-What did they do?

Lawsuits involve disputes of fact. Many professional liability lawsuits and employment practices allegations involve the answers to the above four questions. Immediate written documentation of events is your best line of defense against allegations of wrongdoing.

The rule to follow is, in a lawsuit, it doesn't matter what you say in court. If you didn't write it down at the time of the event, it did not happen.

An employee come in late for the third time in a week and you reprimand him, write down the facts and what was said by whom to whom. A customer asks for a change in the contract, write it down.

You interview a job applicant or have a conversation with someone seeking a reference, write up the details.

It only takes a minute to log events and conversations.

The de-tails will save your tail.

Disability Insurance For a Buy/Sell Agreement

Partners should consider disability insurance as a part of the funding of a buy/sell agreement. This is in addition the life insurance you are (hopefully) buying.

What is the impact of the loss of a key employee to your company? Look at your most skilled staff. What happens if Joe is disabled for 6 months? How will your business be affected?

Life insurance and disability insurance can ease the financial burden.