Life insurance protects, offers peace of mind

Did you know most Americans (78 percent) agree that preparing financially for life’s unknowns is a way to show that you care? In fact, a little closer look at the data finds almost 2 in 3 (65 percent) think that having life insurance is key to taking care of their family financially.

These are just some of the findings from the “2019 Insure Your Love Consumer Survey” by Life Happens. The nonprofit association is dedicated to helping more Americans take personal financial responsibility through ownership of life insurance and related products. Its survey also examined the ways Americans address financial stress in their lives.

LOOKING FOR A NEW WAY TO SAY I LOVE YOU?

The survey found 75 percent of people with life insurance say they prioritize the happiness of their loved ones over their personal happiness compared to 66 percent of people without life insurance.

REDUCE STRESS AND GET MORE OUT OF LIFE!

Almost 8 in 10 people (78 percent) say that finding ways to reduce financial stress is a top priority. And the good news is many are taking steps to do so: 7 in 10 people with life insurance (69 percent) say they are less stressed knowing their family is financially protected. In addition, peace of mind comes with that reduced stress: 65 percent of those with life insurance say they’re able to enjoy life more knowing their loved ones are financially protected with life insurance.

WHAT ADDS MEANING TO YOUR LIFE?

People find joy and meaning in life in different ways. But some things bubble to the top as life-enhancing. Those surveyed say these things add a great deal of meaning to their lives:

  • feeling financially secure (62 percent)
  • being in love (60 percent)
  • finding a reason to laugh every day (59 percent)
  • owning a home (43 percent)

And despite what may seem like an all-pervasive obsession with technology, having the latest electronic gadget was life-affirming to just 10 percent.

IS THERE A DISCONNECT FOR SINGLE PARENTS?

Nearly 8 in 10 single parents (78 percent) agree that financially preparing for life’s unknowns is a way to show your loved ones you care. And most of them (85 percent) say feeling financially secure is

a top priority, as is reducing financial stress (79 percent). However, only slightly more than half of single parents have life insurance in place compared to parents who live with their spouse/partner (72 percent).

 

Life Happens conducted the “2019 Insure Your Love Consumer Survey,” an online survey, via Survey Monkey among US consumers ages 18 and older who play a role in financial decision-making for their household. A group of 1,748 respondents qualified for the survey; base size varies by question as respondents could skip questions or drop out before completing the survey. The survey was fielded from October 31 to November 2, 2018.

Neither The Ayres Group Insurance Company nor its affiliates or representatives offer tax or legal advice. Consult with your tax adviser or attorney about your specific situation. For policy service and additional information, speak to an independent agent representing The Ayres Group Insurance Company. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. 

Don’t put it off: Assess your life insurance

Would you believe that 1 in 5 families with children under age 18 does not have life insurance? As shocking as that may be to many of us, a 2018 study by LIMRA, a leading insurance, and financial services trade organization, also found that 3 in 10 families would be in immediate financial trouble if a primary wage earner died. And, nearly half of respondents would experience financial adversity in just six months.

LIMRA estimates that 48 percent of U.S. households are underinsured by an average of $200,000.

Sadly, the LIMRA’s 2018 survey found that the most common reason respondents gave for not buying insurance was they incorrectly believed it was too expensive. Indeed, most estimated the cost of a $250,000 policy for a healthy 30-year-old at three times its actual cost of an average of $160 a year – the monthly cost for many common expenses. Life insurance prices, especially term life, have remained at affordable levels while other daily expenses have increased.

Now is an ideal time to re-examine the amount of life insurance you and your family have in force.

Most people put off this task for one of two reasons:

  1. The thought of losing a loved one is difficult to handle. It makes people uncomfortable to consider a world without that person in it.
  2. They find the task too complicated and burdensome.

Let’s address the second part first by admitting that for many people, deciding what type and how much life insurance to buy is complicated. That’s why consulting with your Ayres Group insurance agent is so crucial to the process.

Our agents can help you consider the right questions. For example:

  • What are your average monthly expenditures and how long will they continue? Basic utilities (electricity, water, trash) and common comforts (cable/satellite/streaming services, internet, wireless plans) will always be needed. Mortgage payments, car payments, and child expenses, on the other hand, likely will diminish. Knowing how much of each wage earner’s take-home pay is used to cover these expenses helps to determine how much life insurance is needed.
  • What is your timeline? Identify your “peak need” years by examining the ages of any children and their educational or medical needs as well as the number of years left on any loans. Finally, understand that there will likely always be a need for life insurance for income replacement, survivor benefits or final expenses. An agent can help build the perfect coverage plan for your family’s specific needs.

As for the uncomfortable thought of losing a loved one, turn the idea around. Ask yourself “will my family be able to survive financially after I am gone?” If you view life insurance as taking care of your family, you gain a better perspective on the need for life insurance.

Remember, life insurance is not for the person who dies; it protects the people who live.

Have questions about what you just read? Get in touch. Call 1-800-343-2152

Personal property may need additional protection

Homeowner insurance isn’t just for the structure of your house. It also provides protection for most of your personal possessions. Some possessions of special value may require additional protection through a personal articles floater that can provide coverage beyond your standard policy.

WHAT’S IN YOUR POLICY

Before discussing what a personal articles floater is and the benefits it can provide, it is important to understand some details of your current homeowner policy.

Offered within a standard homeowner policy is Coverage C, better known as personal property coverage. It protects the contents of your home and other property owned by you ranging from the television to the clothes in your closet. Personal property coverage amounts are a percentage of the home’s insured value, typically around 75 percent. See your policy language for your specific situation.

Most homeowners have sufficient personal property coverage to protect their basic furnishings, but what if you own fine art, jewelry, silverware or other high-value collectibles? Some collectors may assume they have the necessary coverage under the contents coverage automatically provided, but in doing so, they risk their collection being severely underinsured. Consider, the standard homeowner policy typically:

  • insures these types of items only up to a maximum dollar amount, or not at all.
  • requires a deductible – the amount a policyholder must pay for an insured loss before insurance pays the remainder.
  • applies exclusions or limitations for such things as breakage, earthquakes, flood or while in transit.
  • settles losses on an actual cash value basis, which is the depreciated value of the item.
THE PERSONAL ARTICLES FLOATER

For these reasons, many collectors prefer to purchase a personal articles floater, an entirely separate policy not connected with your existing homeowner policy. Most personal articles policies can provide broad, all-risk coverage. This means that there is coverage for a loss unless specifically excluded. Some additional benefits typically include:

  • No deductible is required, although you may be able to reduce your premium if you choose a deductible.
  • Most major dangers to your collection are covered, including such things as: accidental damage, theft, fire, mysterious disappearance, breakage, earthquake, flood and even terrorism.
  • Loss settlements are based on an agreed value at the time the policy was issued. Some insurance companies offer up to an additional 150 percent of the agreed value if, prior to loss, the market value is higher than the scheduled amount.
  • Coverage extends to newly acquired property.
  • The floater provides worldwide coverage.
  • Full coverage applies to items in transit or while at any other location away from your home.
  • Scheduled and unscheduled (blanket) options are available.
  • Most insurance companies offer a package or multi-policy discount.
COVERED PROPERTY

A personal articles floater can offer proper protection for collections such as these – and many other rare or unique items:

-Antiques                                           -Musical instruments

-Cameras                                           -Rare books

-Coins                                                 -Silverware

-Fine art                                             -Sports memorabilia

-Furs                                                   -Stamps

-Guns                                                  -Wine

-Jewelry

Don’t leave insurance coverage for your collection to chance. If you are uncertain about your current insurance policy and the coverage in place for your valuables, contact your Ayres Group Agent for guidance. Your agent has the expertise to assist you in obtaining the appropriate amount of insurance protection for your collection.

Helpful Tips for New Drivers

I remember the first day I passed my driver’s test. I felt like I was on cloud nine…invincible. I instantly thought about all of the places I was going to go by myself. No more asking my parents or friends for a ride – my ticket to being independent had finally come, and I was ready to take on the road like a pro! Handing the paperwork to the clerk at the Secretary of State was empowering. “This is it,” I thought to myself. “You are about to get your official driver’s license!” I made sure I looked my best for my photo (I even made them take the picture twice) and they said I would receive a hard copy of my license in the mail in 2 to 3 weeks.

Walking out that door with the authorization to drive on my own, I couldn’t stop smiling, I felt like a true adult. However, I was far from it. The truth is, I was only 16-years-old and had no idea the weight of responsibility that was on my shoulders now. I’ll admit for the first few months I was driving alone, I was a little scared. I would have to constantly keep rubbing my palms on my clothes because they would get sweaty and slippery on the wheel. If I got beeped at, I took it very personally and thought about what I could have done better. I made sure to make as little mistakes as possible – I didn’t want any of the other experienced drivers thinking I was a beginner at this! Eventually, it got better with practice and I became more comfortable with going on highway ramps, switching lanes and driving in urban areas.

If you have a teen that just passed their driver’s test or are currently in driver’s education, remember that this moment is an important, life-changing accomplishment for them. Even though you won’t be physically by their side when they’re behind the wheel, you can still offer them your support and driving wisdom beforehand. I know, it’s easier said than done. Looking back, I didn’t exactly listen to everything my parents told me when I was 16, but I must have retained something since I’m a pretty safe driver now!

Sadly, according to the CDC, vehicle crashes are the leading cause of death for teens in the U.S. It’s scary and the last thing you want to imagine, so it’s important to make sure they’re truly prepared for driving.

Thankfully, you can guide your teen to ensure their driving experience is as safe as possible with these helpful tips:

    • Follow the speed limit. I know, it’s an obvious one. But when you go too fast, you have less time to stop or react. Speeding is one of the leading causes of teenage accidents. Another obvious and important reminder – always wear your seatbelt! According to the CDC, wearing a seat belt can lower the risk of death in car accidents by nearly 50%.
    • Make sure your seat is adjusted properly to your height. This is very important because if you can’t see through your rear view mirror, it can affect your driving. A good way to tell if the mirror is in the right spot is if you can see the headlights of the car behind you. Also, make sure to adjust your door mirrors on the drivers and passenger side.
    • Keep that windshield clean. Keeping your car clean isn’t just about style. In the morning and evening, light reflecting off a dirty windshield can temporarily blind you while you’re driving.
    • Always check your blind spot. This is something I can’t stress enough! Thoughtlessly changing lanes can lead to a dangerous situation, especially with smaller vehicles like motorcycles.
  • Use your turn signals. Whether you’re turning or changing lanes, you need to give the car behind you enough time to react.
  • Be cautious for aggressive drivers. If you do encounter an angry driver, back off and give them space on the road. The best thing is to stay calm to avoid getting into an accident with this person, or another driver on the road.
  • Don’t use cruise control in the rain or snow. Using this feature during heavy rain, snow or ice can cause you to lose control of your vehicle.
  • Keep your hands on the wheel, and off your cell phone! Texting and driving has become the number one distraction for teens and adults. A text isn’t worth anyone’s life, and each time you take your eyes off the road, you put yourself and others at risk. Another reason to keep your eyes on your phone – you will get a ticket! According to the Governors Highway Safety Association, 47 states have banned text messaging for drivers. If you get caught, you may get slapped with a big fine, and get points on your driving record. A good way to avoid this is to keep your phone in a place that you can’t reach while you’re driving.

For the first few weeks, it might be a good idea to have your teen start off with small trips that are less than five miles away. It will help build confidence and allow them to get more comfortable with driving alone. If you’re still nervous, there are other options you can look into, such as a GPS tracking device or smart phone apps that will monitor the location and driving speeds. Plus, larger automakers have actually installed systems in their new models that allow parents to set limits on speed and drive time, so keep an eye out for those.

From everyone here at The Ayres Group, good luck, and safe driving!

Outdoor gatherings: Making memories, not regrets

Block parties, wedding receptions, graduation celebrations, family reunions: These are just some of the events that are fun to take outdoors. But when you’re the host, your concerns need to extend beyond hoping for cooperative weather and stocking snacks.

In general, any time you serve alcohol, host a pool party or provide equipment for entertainment, there is an element of potential liability on your part for any injury, and your insurance may not provide coverage.

POOLS

If you own a backyard pool, you may be liable if someone is injured. Consider who uses your pool. Are children supervised? Do you limit the number of swimmers in the pool at one time? Are there slides or diving boards that could increase the risk of injury? Many insurance companies do not issue policies on properties with these types of pool equipment.

PLAY EQUIPMENT

Other child-oriented activities pose hazards as well. There have been reports of injuries to children after bounce houses went airborne. While that is not likely to happen, other bounce house injuries are common. Whether you purchase or rent inflatables, follow the manufacturer’s instructions for setup and storage, and take common-sense precautions to prevent injury.

Trampolines pose an even bigger risk, and some carriers exclude trampolines from coverage or charge an extra premium. The American Academy of Pediatrics warns that thousands of people are injured each year while using trampolines, especially when more than one child is jumping at one time.

As part of its underwriting process, your insurance company may request documentation that safety measures are in place for bounce houses and trampolines. The CPSC offers tips for periodic trampoline maintenance and inspection.

ALCOHOL

When you serve alcohol, be especially careful. Slower response times and reduced clarity in judgment make routine games such as lawn darts, horseshoes or football more dangerous. Make sure adults who supervise children are competent and not impaired. Also, be aware that you may be held liable if a guest drives home from a party intoxicated and injures or kills someone, or damages someone’s property, on the way. Ask your Ayres Group insurance agent whether your potential liability would be covered by your homeowner policy. Coverage for liability arising out of serving alcohol to guests is referred to as host liquor liability and is not covered by all insurance companies.

RENTED VENUES

Location is another concern. If you rent a shelter, be sure to ask your agent if your homeowner’s liability insurance extends property damage coverage to the rented location.

Most picnics and parties go off without a hitch. However, before you plan a big event, it is a good idea to review your homeowner’s liability coverage with your agent to make sure you are covered should an accident occur.

Remodeling, renovation can affect home’s value

Remodeling and renovation projects can add significantly to the value of your home. Whether you do it yourself or hire a contractor, remember to update your homeowner insurance as you increase your home’s value.

The Coverage A limit on your homeowner policy is the amount of insurance you have to reconstruct your home in the event of a total loss. All costs associated with replacing or rebuilding your home are considered when developing this Coverage A limit. When you make changes that increase the value of your home, you may also need to increase the coverage limit.

Reconstruction cost is the cost to hire a contractor to replace the home as it is, in today’s marketplace, using materials and design of similar quality. Determining the reconstruction cost of your home can be a challenging and complex process. In most situations, reconstruction cost does not reflect the market value, tax assessor value or the initial construction cost of the home – even on a new home.

As you plan your next project, take an inventory of your home’s new features. Consider interior changes as well as exterior.

  • Does the addition on your home have a different roof material than the rest of your home?
  • Does the new deck you built include a kitchen, built-in grill or electric fireplace?
  • Is your contractor installing built-in bookshelves and TV cabinets?
  • Are you finishing your attic area to create an extra bedroom?
  • Did you upgrade your windows?

You may put lots of time into picking out countertops and appliances for your new basement kitchen, type of wood for cabinetry, the color of brick to match the original portion of your home, quality of decking materials and other factors. Remember to share these important changes with AYres Group agent.

Most insurance companies offer a replacement cost endorsement to ensure you will get the full reconstruction cost to rebuild your home in the event of a covered total loss, or a percentage more than the limit of insurance on your declarations page. You may also wish to explore this option with your agent.

Discuss your homeowner coverage with your Ayres Group agent to be sure your home and the investment it represents are adequately insured in the event of a loss.

When deer and your vehicle meet

As the outdoor temperature gradually drops, deer activity and deer-vehicle accidents increase. Every year across the country, deer-vehicle accidents account for billions of dollars in vehicle damage, thousands of injuries and hundreds of fatalities. These tips can help you avoid a collision with a deer and stay safe while on the road.

  • Dawn, dusk and night are the times you are most likely to encounter deer in the roadway.
  • The annual deer breeding season, also known as the rut, occurs mainly from October through December, but also can extend into January for some southern states.
  • Deer can be very active and unpredictable at these times while they are searching for mates.
  • Use extreme caution at these times of the day and year or when you’re in a location conducive to deer activity.
  • Country roads, farmland and heavily wooded areas are known for high deer populations, but it’s also not uncommon to encounter deer in suburban or urban areas.
  • Deer are herd animals. If you see one, more deer are likely to follow.
  • Headlights won’t necessarily scare deer.  Sometimes they cause deer to stop in their tracks and on the road.
  • Don’t rely on vehicle-mounted whistles or reflectors designed to keep deer away from your vehicle. Studies show they are not effective.

Tips that can help you stay safe:

  • Always wear your seatbelt.
  • Stay alert and be aware of your surroundings.
  • Drive at or below the speed limit when in areas with large deer populations.
  • Use high-beam headlights when it is safe to do so in order to enhance your visibility.
  • Be aware of Deer Crossing signs. These signs are strategically placed in areas frequently used by deer to cross the road.
  • Reduce speed in areas with high deer traffic, as well as situations where terrain, weather, darkness or other conditions impair your ability to see and react to deer in or near the roadway.
  • Slow down or stop if it’s safe to do so as you approach deer in the road or on the roadside.
  • Don’t swerve your vehicle to avoid hitting a deer. This could cause you to lose control and hit another vehicle or object.

If you hit a deer: 

  • Contact the local emergency services if anyone is injured.
  • Notify the local law enforcement agency of the accident.
  • Report the accident to your insurance agent or insurance company as soon as possible.
  • Never attempt to approach the deer. Deer are unpredictable wild animals. When injured, they could cause personal harm to you or run back into the roadway in front of traffic, causing another accident.

Life insurance can protect family from college debt

As college graduates take the next step, one thing is often left out of the process – life insurance. Young adults often carry debt with them into the working world, whether from student loans, car loans or credit card debt.

If you are a recent graduate, have you considered what could happen if you were no longer around to cover your loan payments? Would your loved ones struggle to make ends meet?

Many people do not realize that – depending on their loan agreement – their spouse, cosigner or estate might be responsible for paying off student debt. A 2016 LIMRA study found one in three households would have immediate trouble paying daily living expenses after the death of a primary wage earner. This need tends to be compounded for young adults who are not financially established in life. Most people are not expecting to cover the loan payments and final expenses of a young relative, but tragedies can happen, and life insurance can provide the financial protection to cover these costs while a family grieves.

Through the purchase of a term life insurance policy, a young adult could obtain coverage to fit their stage of life. Term life insurance offers a level death benefit for a guaranteed period of time ranging from 10 to 30 years. Furthermore, an applicant can usually obtain the most cost-effective coverage while still young. Term life insurance is an ideal product to protect a new professional’s family from financial distress in the event of an untimely death.

And it probably costs less than you think. Term life insurance tends to be the least expensive coverage option for an individual. A 2017 Insurance Barometer Study indicated that four in 10 millennials overestimate the cost of term life insurance by more than five times the actual cost. Even with a tight budget, term life insurance can provide the necessary coverage to protect one’s family.

Contact your Ayres Group representative for more information.

How much life insurance do I need?

Once you have decided to purchase life insurance, the next question to answer is how much to purchase.

Some people select coverage based on an arbitrary amount: $100,000 or $200,000. Others purchase enough to pay off a home mortgage or other major bill. And some stick to the tried-and-true measure of 10 times salary.

But there are other methods to consider. You can complete a fact finder/needs list or use a life insurance calculator.

Using a fact finder ̶  something you would complete with your Ayres Group agent  ̶  is a fancy way of saying making a list. The list would include things you would want the life insurance proceeds to cover in the event of an untimely death: car note, college tuition, income replacement, etc. Then prioritize the list based on need and importance.

If you are computer savvy ̶  and you probably are if you are reading a blog  ̶  I would recommend the life calculator on lifehappens.org. Life Happens is a life insurance educational site independent from any life insurance company. You can find out about the different types of life products available, for example, permanent vs. term, universal life vs. guaranteed whole life and other options. The Life Insurance Needs Calculator is on the Calculator tab. By investing just 5 or 10 minutes of your time, you can receive a calculation of the amount of life insurance you need.

Regardless of calculation method, you may be overwhelmed by the size of the need number. Don’t be. Think of it as only a starting point. Show your calculations to a life insurance agent, who can help fine tune your numbers.

You also want to consider your budget. You never want to be insurance poor, meaning that you purchased so much insurance it caused a major change in your lifestyle. However, would eliminating one fancy coffee or an unnecessary trip to the snack vending machine disturb your routine much? There’s nothing wrong with working backward, first determining the amount that fits within your budget, then determining the coverage type and amount.

And one final thought: any insurance is better than none. Remember that the death benefit is TAX-FREE. A little gift would still go a long way for your family.

Neither The Ayres Group nor its affiliates or representatives offer tax or legal advice. Consult with your tax adviser or attorney about your specific situation. 

 

Courtesy; Cinfin.com

Life insurance in the workplace

Good benefits can increase employee satisfaction. If you are an employer, providing valuable benefits that can be paid via payroll deduction can give you an edge when trying to attract and retain workers. Life insurance is one benefit you can offer in the workplace at a reasonable cost.

But as you consider offering life insurance, you may ask: How much coverage is needed? What about protection for family members?

According to LIMRA, a leading insurance and financial services trade organization, millions of Americans have no life insurance coverage other than the employee group term life insurance offered by their employers. Group life insurance plans usually include a cost to the employer, offer limited coverage options for the employees, and are not portable if an employee leaves the company. And, since these plans cover employees only, an even greater number of people have no coverage for their spouses or dependent children.

A LIMRA study found that almost eight in 10 American households have no personal life insurance agent. The only opportunity they may have to work with an insurance professional is through the employee benefit programs offered by their employers.

Individual life insurance as a voluntary benefit Voluntary life insurance plans offer individually owned life insurance to employees, their spouses and dependent children without direct cost to the employer. These plans give employees the flexibility to build an insurance program according to their needs and budgets. Some of the features you may want to look for are:

  • Guaranteed issue
  • Eligibility without a medical exam or blood profile
  • Availability to add the employee’s spouse, children and grandchildren
  • Premiums paid through the convenience of payroll deduction
  • Customizable policies to meet individual family needs
  • Portability – the option to continue coverage with no change in death benefit or cost if an employee leaves or retires
  • Voluntary – no sales pressure approach

Employees want a variety of benefits to choose from, which leaves you to decide what options to offer. Consider that retaining current employees is more cost effective for a business than hiring new. Offering your employees the added financial protection they may need in the event that something unexpected happens could be a deciding factor in their retention.

Talk with your Ayres Group agent to learn more about voluntary life insurance opportunities.