Life insurance in the workplace

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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.

Protecting Your Collection and Preventing Loss

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Collecting can be an enjoyable hobby, an educational pursuit or even a financial investment. So how do you look after a collection now that you’ve assembled one? While every collection is unique and has its own specific needs, you can take some simple loss prevention steps to help protect yours from loss or damage.

A good place to begin is creating and maintaining a current inventory of your collection. For each item in your collection, your inventory list should include: artist/maker, title, date, type of object, materials used, any inscriptions or markings on the object and its value. Be sure to include photographs to document the condition of each item and store a copy in a secure, secondary location such as a safe deposit box.

Theft and fire are two of the most common causes of loss involving collections. Consider installing centrally monitored burglar and fire alarm systems. Not only will this help keep you and your family safe while deterring loss or damage to your collection, it can sometimes result in savings on your insurance policy.

When choosing how to display or store your collection, consider the following suggestions:

  • Hire a professional art handler to ensure objects are properly installed.
  • Avoid hanging objects behind doors, in narrow hallways or in close proximity to furniture or shelving.
  • Do not hang objects above a working fireplace or in close proximity to other heat sources such as radiators.
  • Keep objects out of direct sunlight, as UV light can cause severe damage, specifically works on paper, photographs or textiles.
  • Do not store objects in basements or attics, as these areas are vulnerable to flooding, leaks and dramatic temperature changes).
  • Fragile objects should be displayed behind glass or secured with specialty wax, putty or gel.
  • Have a mulch bed or other type of barrier around outdoor sculptures to prevent damage from lawn equipment.

Realize, too, that all art objects are sensitive to the influences of temperature and humidity, which could lead to damage such as warping, cracking and mold growth. Maintaining a controlled home temperature and humidity level will help prevent damage to your collection.

Sometimes accidents simply can’t be anticipated or stopped, but by implementing some of these preventive loss measures, you have a better chance of increasing the longevity of your collection.

Contact your local Ayres Group Agent for advice on coverages to protect your collection.

Life insurance: A perfect gift for a grandchild

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When you think about all the things you want to purchase for your grandchild, life insurance would likely be near the bottom of the list. While it may not be the most exotic purchase, by the end of this blog I hope life insurance would be up for consideration. Life Insurance for a child or grandchild offers three important advantages: it’s inexpensive; it provides protection for the unexpected; and certain types of life insurance could help protect your child’s or grandchild’s insurability.

First, life insurance is inexpensive. The way life insurance works is that the younger and healthier you are, the less the coverage will cost. Life insurance premiums are based on life expectancies and risk factors. Risk factors would include things that could adversely affect life expectancy, for example, health issues; habits like smoking or sky diving; and family history.

Let’s compare an 18-year-old nonsmoker with a 40-year-old smoker with high blood pressure and heart issues. The life insurance company would see the 18-year-old as a better risk based on age and the other risk factors (smoking and health), so the same coverage would cost less for the 18-year-old.

Second, life insurance’s main purpose is to provide a tax-free death benefit. I know it’s not a pleasant thought, so we will not dwell on it too much, but answer this question: Would it be better to have a tax-free benefit or use credit cards or a loan to pay for final expenses?

Finally, depending on the product purchased, you could protect your child’s or grandchild’s insurability.

As a parent or grandparent, you have a couple of options available for your child or grandchild’s insurability. First is term life insurance, which would provide coverage for a fixed number of years. A term policy could be converted later for up to the original face amount to a permanent form of life insurance without proof of insurability.

The other option would be a permanent life policy, which would be more expensive; however, it could offer a major advantage. Permanent forms of insurance can offer an insurability rider that allows purchasing additional coverage, without the proof of insurability. This protects your child or grandchild in case they develop a medical condition, making coverage more expensive or unavailable down the road. Just as insurance is more expensive as you age, some medical conditions make life insurance unobtainable.

Regardless of the type of coverage you select, purchasing life insurance for a child or grandchild is not a bad idea. The type, coverage amount and contract structure would vary based on each individual situation, and your Ayres Group agent can help you evaluate your options.

Cyber risk insurance: New coverage for emerging risks

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It seems you can’t turn on the news without hearing about a cyber-related crime or incident.

Criminals are increasingly using ransomware as a means of extortion. Ransomware is a form of malware, usually delivered by email phishing scams, that locks victims out of their critical data until they pay the criminals a fee. The FBI received more than 2,400 complaints about ransomware in 2015, with a reported loss of more than $24 million. Authorities believe the actual costs could be much higher because the crime is underreported. The Department of Justice estimates that these ransomware attacks now average 4,000 per day – that’s a 300 percent increase over 2015.

Headlines usually describe breaches of sensitive customer data suffered by large, well-known companies. In reality, most cyber-attacks are not high-profile cases but softer targets, such as small- to medium-size operations. No business or industry is immune to cyber risks. Lost or stolen mobile devices, improper disposal of paper records or deficiencies in system malware protection can lead to a breach or attack.

The good news is that insurance coverage is available that can be tailored to protect your business from cyber risks.

DATA BREACH PROTECTION

Small- to medium-sized businesses should consider coverage for:

response expenses, including forensic IT and legal reviews, notification to affected individuals, public relations expenses as well as fines and penalty coverage
third-party defense and liability
identity theft recovery
protection from computer attack on your network, including data restoration and re‑creation costs, system restoration expenses, loss of business income and public relations services
network security liability in case there is a breach of third-party business information, unintended spreading or forwarding of malware or a denial of service attack

CYBER DEFENSE PROTECTION

If your business stores large quantities of sensitive information, for example, financial institutions, health care organizations or schools, ask about cyber defense coverage which may include:

cyber extortion coverage
electronic media liability coverage
access to online risk management and educational resources

STEPS YOU CAN TAKE

With or without insurance coverage, you can take steps help prevent loss:

  • encrypt data
  • patch system vulnerabilities
  • shred sensitive documents
  • educate your employees on topics such as email phishing scams
  • develop and test contingency plans

    Speak to your  Ayres Group agent about the coverages that are right for you.

Play it safe during your hotel stay

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Whether you travel for business or leisure, consider increasing your safety awareness when you stay in a hotel.

BEFORE YOUR TRIP
  • While most top properties are in safe areas, you may want to research before booking a room in an unfamiliar city or neighborhood to confirm. Call the community resource officer in the police jurisdiction responsible for the area where the hotel is located, or use free online research sites such as the FBI’s Uniform Crime Reporting tools or CrimeReports.com
  • Be careful about sharing your travel plans on social media. Make sure your settings are private; avoid making public posts to protect yourself while you are traveling and your home is unoccupied.
  • Choose a hotel that is adequately protected from fire. Check the U.S. Fire Administration’s Hotel-Motel National Master List to find hotels that have:
    • At least one single-station and hard-wired smoke alarm in each guest room
    • An automatic fire sprinkler system in each guest room if the building has four or more stories. More information about hotel fire safety is available in our blog, Planning a hotel or motel stay? Think about fire safety.
    • Pack a flashlight that you can keep on the hotel nightstand in case you need to escape in the dark.
  • Take only those valuables that you will absolutely need for the trip.
UPON CHECK-IN
  • Limit the number of times you say your name and room number during the check-in process. At any given time, a number of people could be within earshot of the front desk.
  • Do not keep your room key in the envelope provided at check-in. Securely discard the envelope, which may contain identifying information, such as room number and last name.
  • Keep a close eye on your luggage while in the lobby.
  • Upon entering your guest room, verify that all sliding glass doors, windows and connecting room doors are locked and secure.
  • Inspect mattresses for bedbugs. Check the U.S. Environmental Protection Agency’s article on How to Find Bed Bugs to learn how to inspect a mattress and accurately identify a bedbug infestation.
DURING YOUR STAY
  • When you are in your room, be sure to engage all locking mechanisms on your guest room door, including deadbolts, chain and safety bar.
  • Do not open the door to your hotel room to unknown persons. If you are not expecting a hotel staff person, call the front desk to verify his or her identity before opening the door.
  • If returning to the hotel late in the evening, use the main entrance.
  • Keep valuables locked in the room safe or inside your luggage.
  • Exercise discretion when providing your name and room number while in the hotel restaurant or bar.
CYBER SAFETY
  • Pay attention to cyber security if you use a computer or mobile device on hotel Wi-Fi systems. Don’t assume that the Wi-Fi connection is secure.
  • When available, use a hard-wired connection or a personal Wi-Fi hotspot rather than a public Wi‑Fi connection.
  • The Federal Trade Commission has posted a video with tips on how to keep your connections secure.

Are you properly insuring your other structures?

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There’s more to your homeowner policy than just coverage for the house you live in. It also provides coverage for other structures on your property.

These may include all structures and buildings not sharing a foundation with your house. Most insurance policies provide 10 percent coverage for other structures. For example, if you insure your home for $200,000 an additional limit of $20,000 applies to all other structures. Remember that if you have a total loss, you don’t receive $20,000 for each structure, but $20,000 total for damage to all other structures. A large detached garage by itself can exceed this amount in many cases.

So how do you know you have appropriate coverage?

If you have detached structures on your land, it is best to consult with your Ayres Group independent insurance agent to discuss options. A pool house, large barn, garage with living space, fence, freestanding deck and stable may fall into different categories, and your agent can help make sure you have the correct coverage to protect you in the event of a total loss.

While the chances of losing all your other structures at one time are small, you want to secure enough coverage to protect your investments. You may need more than the 10 percent standard coverage for appurtenant structures.

Also consider that many different types of structures could qualify for coverage on your policy, and it’s important to select the correct category based on usage. Your agent can advise you on the information you will need to provide to obtain the coverage that’s right for your situation.

A good example is a barn. Barns can be built in many different ways from a variety of materials. By providing accurate information on usage and construction, you can be assured that your property is protected.

If your other structure is being rented, is used for a business or was not reported, you are most likely not adequately insured. Your agent has the expertise to guide you.

Finally, don’t forget to assess how much insurance protection you need for personal property housed in your other structures. For example, a home woodshop in your barn could have valuable equipment you’ll want to protect. Ask your agent for advice.

The best way to look at it is to think of insuring your other freestanding structures the same way you would your home. You want 100 percent coverage for each structure in the event of a loss. Replacement of these structures is typically less expensive than a home, but those costs can add up and represent a significant loss.

Courtesy: Cinfin.com

Reasons to buy life insurance

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Life insurance is too expensive. Life insurance can wait. Life insurance is a waste of money. Life insurance is …. Whatever follows this phrase has undoubtedly been uttered to a life insurance agent. However, each of these reasons AGAINST purchasing life insurance can also be a reason FOR purchasing life insurance.

If paying for life insurance is too expensive, how will a family pay bills if the primary breadwinner were to die unexpectedly?  Consider all of your debts. Now add on typical expenses such as housing, food, insurance, clothing, utilities, college tuition and any other future expenditure. Those premiums don’t seem too big once compared to future financial obligations.

Life insurance cannot wait. No one can predict an unexpected death, and the premiums are actually cheaper earlier in life.

As for life insurance being a waste of money, who wants to get their money out of a life insurance purchase? Take a traditional 10-year term policy for example. If the insured dies during the 10-year period, his or her beneficiaries will receive the death benefit. If the insured were to live longer than the 10-year period, he or she would have had financial protection for 10 years with the term insurance. This is hardly a waste of money.

Life insurance saved our family. Life insurance paid off our home. Life insurance was a gift from beyond. Life insurance …. Whatever follows this phrase has undoubtedly been uttered to a life insurance agent. Life insurance is designed for the unexpected and tragic moments in life. No one expects to die prematurely, but it happens every day.

People lose a loved one, and after the initial shock passes, the mind turns to the future. How will I move on? How will I pay for the funeral? How will I take care of my children? The ones left behind will have to pick up the pieces and continue on. This is where life insurance comes into play.

Often feelings about life insurance change after a death, ranging from being upset with the lack of protection, regretting the cancellation of the policy, wishing for more coverage, and the rush of relief knowing that financial burdens will be eased even with the loss of a loved one.

Talk to your Ayres Group agent to make sure your family’s financial future is protected.

Remember insurance as college students head back

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Back-to-school time is a good time to review your insurance if you have a student headed back to college. Remember to talk to your Ayres Group insurance agent for advice to make sure your student’s car, electronics and other belongings are covered. Some coverage may extend from your own personal insurance policies, but individual circumstances can vary. Your agent will know how to help.

As the summer winds down, millions of college students will be heading back to dorms or apartments all across the country. If your child is among them, you probably have made sure that your student has the necessary bedding, shelving, futons and electronics for a successful year.

But have you considered whether these items will be covered if lost or stolen?

Remember to check with your insurance agent before your child returns to school to see whether your personal homeowner policy extends your homeowner contents coverage to your child’s possessions in a dorm room or apartment. Your agent can also advise you whether or not your homeowner liability coverage may also extend to your child while living away at school.

Are you planning to send your child to school with a car? Your agent may need to amend the address to reflect your child’s address at school. This is known in the insurance industry as the “garaging location,” whether or not a garage is involved. Keep in mind that distance from home may be one factor in the premium cost for your policy.

And even if your college student will not keep an auto at school, it’s important to keep your agent in the loop. The child may be rated differently, possibly resulting in a savings of premium for you. When your student is no longer a year-round member of your household, he or she does not have full-time access to the vehicles on the policy.

Sending a child off to college or university can be an exciting and challenging time for parents. Ease your mind by talking with your Ayres Group insurance agent to ensure you and your child have the proper coverage while away at school.

 

Renting a home while on vacation? Check your policy

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Many families enjoy the convenience of renting a beach home or mountain cabin for a vacation getaway. But the last thing you want to think about while on vacation is being liable for damage to that rental home or to worry about your personal belongings.

Most homeowner policies provide two important coverages to consider when on vacation: personal property coverage and liability coverage. Before you rent a vacation home, check to see how your policy would respond in the event of a loss. In some cases, you may need to purchase additional coverage.

PERSONAL PROPERTY COVERAGE

A homeowner, tenant or condominium policy protects against losses to your personal belongings, up to the limit provided by the policy. This coverage generally applies if your belongings are damaged while at your own home, in your car or while on vacation.

PERSONAL LIABILITY COVERAGE

Most homeowner policies also include coverage for liability from bodily injury, property damage and personal injury (for example, false arrest, malicious prosecution, libel, slander, invasion of privacy or wrongful eviction)

Accidents happen, and you don’t want to be caught off guard if you or a family member were to break a window or damage property belonging to the owner of the vacation home. Knowing how your policy will respond ahead of time will help you better plan for the unexpected.

Most homeowner policies exclude coverage to property rented to an insured unless it was caused by water, fire, smoke or explosion. Policies generally offer coverage up to $1,000 per occurrence for damage to property of others. This limitation applies to the personal property usually kept in the vacation home that the insured does not own, for example, the furniture, appliances, linens and dishware that are available for use while renting that home.

But even if your homeowner policy excludes these coverages, there are options to secure comprehensive coverage for property damage to the rental vacation home. Many companies that manage vacation rental homes allow the customer to purchase insurance coverage with the rental contract.

Remember to review coverage options available when deciding what home to rent for vacation, and know what you are responsible for in the event of a loss.

Also, if you have a personal umbrella policy, most personal umbrella policies will provide property damage liability coverage for a loss, without a deductible. The coverage on the personal umbrella policy is not limited to water, fire, smoke or explosion. If you have a personal umbrella policy, it may not be necessary to purchase the insurance coverage through the vacation rental company.

Before your vacation getaway, contact your local Ayres Group agent to review your coverages. Then you can relax and enjoy!

Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.

Coutesy: Cinfin.com

1945: a key year in understanding home reconstruction costs

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Owners who treasure their older houses are sometimes surprised by the high estimated cost to rebuild their homes, should they have a total loss. But a little history lesson may help explain why reconstruction costs on homes built prior to 1945 can be challenging.

What happened in 1945 to make construction costs change so much?

  • The Federal Housing Administration mandated building codes and standardized mills for the first time in 1945. Previously, all lumber was “true dimensional,” which means a 2Ă—4 piece of lumber was actually two inches by four inches. To create a consistent product that could be used countrywide, lumber mills created specifications and began scaling down dimensions, making post-1945 lumber smaller. So, a home built with lumber milled prior to 1945 is much more expensive to replace because today’s lumber has to be retrofitted by custom milling to match.
  • Some homes built prior to 1945 were built with post and beam construction instead of bearing wall construction. Roof weight is supported differently with post and beam construction, and partial damage to the structure (especially a weight-bearing post) may result in a need for total reconstruction.
  • Prior to urbanization, homes were often built using materials found on the property. Southern regions used hand-hewn timber, industrial regions used brick masonry and mountain regions used stone masonry and logs. These regional materials and individual design resulted in very little consistency from home to home. In the event of a loss, retrofitting these unique materials can cost up to four times more than homes of more modern construction.
  • Before 1945, doors and windows were not standardized. Older homes have larger windows that maximized the sunlight. Window panes were also smaller, had true divided sections of glass and frames made of solid wood, all of which costs more to reproduce. Doors were often solid wood as well, which can be up to 10 times more expensive to create than today’s lighter, raised-wood panel or Masonite doors made of fabricated materials.
  • In homes built before 1945, handcrafted features like crown molding, door casings and baseboards were thicker, made of solid wood and often ornate.Each piece was hand cut and carved vs. today’s milled trim. Replacing part of the trim work to match the rest of the home is expensive because it involves both specialized labor and custom materials.

These are just a few of the reasons why reconstruction costs of homes built prior to 1945 can vary so drastically. While the cost to replace individual elements can be up to 10 times the cost of the modern material equivalent, the overall average cost to rebuild a home constructed prior to 1945 is about double the cost of modern homes.

But what if a homeowner does not intend to rebuild the home with original materials? With a total loss, homeowners could rebuild with the quality and materials they choose. However, for a partial loss, the homeowner may not have that option. If the integrity and stability of the home would be compromised by rebuilding with modern materials, then original materials must be used for structural integrity, and county building inspectors would mandate replacement of heavier materials to match the original structure.

Because there is no way to determine exactly what portion or percentage of a home would be damaged in the event of a loss, it’s prudent to be prepared to rebuild the entire structure with pre-1945 materials. By providing 100 percent replacement cost coverage, the homeowner is assured that the home can be replaced completely. In the event of a partial loss, insuring 100 percent to value prevents the implementation of coinsurance penalties, which can be a costly out-of-pocket expense for the homeowner.

Courtesy: Cinfin.com