All About Insurance

December 22, 2020

Life happens is an often used phrase. Life also brings the unexpected and sometimes not for the best. Insurance guards against the unexpected, the unplanned and sometimes catastrophic events that may happen in your life and business. Insurance isn’t a fun topic but it is a necessary discussion. People have different insurance needs based on their family, business, possessions and lifestyle. Some of the available options are included below.

Health Insurance – covers expenses from illness and accidents which could be very costly. In 2019, 2/3 of bankruptcy filers cite medical bills as the key factor. There are two types of coverage, but many options for coverage.

Individual coverage – you work with an agent to purchase a plan for you and/or your family based on your health needs, lifestyle and budget.

Group coverage – Health coverage, as an employee benefit helps attract and retain staff. The employer covers at minimum 50% of the employee cost of the group health plan. Employees contribute each pay period to their portion of the premium. As a business owner, you are able to write off a portion of the monthly premiums.

Disability Insurance – This insurance covers the business owner in the event of injury or sickness. In small business situations this may be the most important insurance. This policy can, depending on coverage, cover your business expenses in the event you are disabled or unable to work for a time.

There is also disability coverage options available for your employees. If feasible employers can pay all, share the cost or pass the cost on to your employees. This includes short term that covers from between 3-6 months and long term that covers from one to ten years depending on the plan.

Life Insurance – this covers your final expenses and can be also used to build wealth for your family. You should have at least enough to cover your final expenses and at most, as much as you can afford to consistently pay premiums each month.

Key-Man or Key Employee – this insurance covers you or an essential employee who is key to the operation of your business and their death, absence or disability can be detrimental to your success. The business is the beneficiary in the event of loss and the premiums for the policy are considered a business expense. Buy-Sell agreements - In the event of death or a partner leaving, this binding agreement decides what happens to their portion of the business.

Property and Casualty Insurance – covers items you own or rent, for example your home, business, equipment and vehicles. This insurance also covers your liability if you are at fault for accident or damages.

Property insurance – protects most risks to your home or business. Auto insurance covers personal vehicles but also business vehicles you may use while providing service to your customers. Commercial Liability insurance – covers against unintentional harm and damage. This could be in your physical business location, with your products or while providing services to your customers.

There are many insurance options and coverages available to meet your needs both personally and professionally. If you have any questions or need assistance with this process please contact me. I am happy to assist.