Archives: 2013

Avoid the Grinch, and Auto Insurance Info

Deck the Halls: Think Fire Safety and Watch the Christmas Tree

According to the National Fire Protection Association, 50 percent of house fires occur in December. The usual culprit? Tannenbaums. So before decorating this year’s tree, consider the following:

• From 2006 to 2010, Christmas trees started an average 240 house fires a year, resulting in four deaths and 21 injuries, not to mention $17.3 million in property damage annually.
• Forty-two percent of Christmas tree fires happen during the “12 Days of Christmas” – December 23 to January 3.
• Disposal is crucial. One homeowner wrapped the tree in clear plastic and put it on the patio. The shiny plastic caught the sunlight, and the tree went up in flames.
• Fake trees are responsible for only a third of all Christmas tree fires.

If a fire happens, contact your insurer immediately. Don’t delay or decide to cover damages yourself. Usually structural damage is worse than you think. Smoke damage alone in a room the size of a bathroom can cause thousands of dollars in damage.

Wiring damage can spread. If it does, your claim could be denied for failing to report previous damage. Condo and townhouse owners and renters would be liable for damage caused to neighbors’ homes.

Tree tips:

• Ensure lights, extension cords, and power strips are in good condition
• Unplug lights before leaving home or going to bed
• Keep trees away from fireplaces and heat sources.
• Water trees daily.

Holiday Parties: Even Santa Loves Cookie Swaps

The holidays are all about entertaining – but multiple parties can strain calendars and budgets. So why not consider hosting a cookie swap. These provide a great opportunity for you to catch up with your friends and their friends, and can even help you prepare for more entertaining.

Cookie swaps are simple. Each guest brings enough baked goods for everyone to enjoy at the party, plus extras to take home. Often guests will share their prized recipes as well.

It takes organization

The key to a good cookie swap is organization. The RSVP deadline matters; the number of people attending will determine how many cookies each guest needs to bring. The more mouths to feed, the fewer items each individual needs to contribute. Cookie swap pros also suggest that you ask what people are bringing and communicate that to the others: Otherwise you may be overloaded with sugar cookies or gingerbread Santas.

Balance sweet with savory

It’s not just about sweet treats. Cheese and crackers, and veggies and dip are a relief from all those sweets, and, of course, you’ll provide choices of liquid refreshment.

A cookie swap provides a good opportunity to pick up new recipes but also to dust off oldies but goldies – and spruce them up. Add festive decorations to your classic brownies, use seasonal cookie cutters and make squares with red and green cereal available only at holiday time. Candy canes crumbled into chocolate hazelnut spread makes a gooey – and easy – treat.

Good uses for extras

Even though your kids may not be invited to the party, they can participate in the baking beforehand – and they’ll be sure to enjoy eating the proceeds of your swap. While you’re at it, don’t forget to freeze extras to pull out when you’re asked to contribute to bake sale fundraisers, or to share with those who don’t, or can’t, bake.

Can You Shape up in Just Minutes a Day?

Are you looking for a quick way to shape up? Well, so are the experts.

High intensity interval training (HIIT) – intense periods of exercise followed by a short recovery time – is gaining favor with trainers and scientists. Proponents say a HIIT regimen – for example, 30 seconds of intense pedaling, followed by a 30-second rest repeated five times gives you greater benefits than traditional workouts. And faster.

The effects are still being studied, but early returns show HIIT increases metabolism and endurance and decreases heart attack risk.

Of course, these workouts are geared towards burning fat, not towards muscle building. But for the full-time working parent, who doesn’t have an hour to hit the gym, these brief but demanding workouts are easy to schedule, and seem to do the job.

Buy Added Auto Insurance for Xmas Road Trips

If you’re one of many driving somewhere for the upcoming holidays, ensure you have adequate auto insurance coverage. Even if you have insurance, look into extended protection, particularly in these scenarios:

For rental vehicles

Even though personal auto insurance covers many losses, it’s limited, so always consider rental car coverage. Personal policies may cover property damage in rental car accidents, but not some subsequent costs, such as the rental company’s loss of income or rental car’s diminished value.

Read the fine print about insurance in rental contracts. Talk to your insurer to clarify personal coverage, and get quotes with higher liability limits and lower deductibles, which will help cover losses with ease.

Out-of-state travel

When travelling out of state, explore additional protection. Auto insurance laws vary by state. Those from no-fault states such as Florida or Michigan often only carry state minimum liability limits, or worse, don’t cover bodily injury. This usually means you don’t have adequate coverage. And very little or no protection – even in not-at-fault accidents.

It’s especially important when traveling to these states to carry additional insurance for collision as well as for property damage. Be particularly aware of the limits of your bodily injury coverage. If you’re uninsured or under-insured, you should acquire additional bodily injury coverage. If someone is injured in an accident you caused, you could be sued for medical expenses, court costs, legal fees, and pain and suffering; you’re responsible for those expenses if they exceed your coverage limit for bodily injury.

Peace of mind

You may pay more, but if insufficient coverage results in you having to pay for repairs or for the major expenses resulting from an accident with injuries that exceed your liability limits, you probably won’t be able to take a vacation again for a long time. In that case, the cost of protecting yourself with appropriate coverage is certainly worth it.
How to Prevent Grinch Visits Over the Holidays

Here’s a warning as the holiday season approaches: Wrapped presents don’t just excite kids – they tantalize burglars. And this comes with a big price tag; the average amount of property stolen in a home burglary is $2,119.

Here are some tips on preventing burglaries that are specially designed to prevent Grinch visits and on making claims:

Be prepared:

• Don’t advertise your winter holiday on Facebook.
• Risk is high before, during and after the holidays. Most burglaries occur when daytime routines return to normal.
• Use classic “burglar prevention” techniques: light timers, holding subscriptions and mail, etc.
• Recipients may not see the gifts you sneak in, but burglars might. Bring gifts home disguised and after dark.
• Don’t pile empty boxes on trash day. It’s too obvious.
• After a burglary, the chances of being burglarized again increase. Burglars know you’ll replace stolen items.

Only 21 percent of stolen property is recovered. Insurance is the best way of compensating for a loss. When choosing coverage and making claims, remember:

• Avoid actual cash value (ACV) coverage, which considers depreciation. ACV covers cost at time of loss, meaning you won’t receive the full value of the item. Replacement cost coverage doesn’t consider depreciation, so that if someone steals your TV set, with replacement cost coverage, you would receive a TV set of like value.
• You usually need proof of ownership of stolen items. This could include receipts, videos, photos and model numbers.
• Usually premiums increase after claims, especially thefts. If policyholders become categorized as high risk, insurers can cancel or not renew policies after theft or fire claims.

It’s far better to prevent thefts as best you can than pay the emotional and financial costs of being a theft victim.

Travel Apps Designed for Wherever Your Road Takes You, and Health Insurance Info

Review Your Health Care Benefits Prior to Year-end

As the end of the year approaches, many of us are thinking about health insurance; for example, most employers open up enrollment to health care benefits. Newer employees can sign up, and other employees can change benefits.

Now’s the perfect time to review options, reduce costs or add coverage. But many put off taking action because of the volume of paperwork and confusing terminology.

It’s particularly important to be proactive this year, as the Affordable Care Act (ACA) will be mostly implemented in 2014. Here are three steps that may help simplify your review process:

Learn the language: There are many terms exclusive to health insurance that have different meanings in other contexts. Online searches are great, but only visit reputable websites.

Update: This is the time to make necessary alterations if you’ve experienced a major life change, including marriage, divorce, having children, relocating or the death of a spouse.

Even if nothing has changed, review your coverage. Employers may have increased deductibles, removed options or be offering new plans. If you aren’t aware of any changes, ask.

Consider Health Savings Accounts (HSAs): Many employers offer HSAs. These are good options for young, healthy single employees, and also may be more attractive than Flexible Spending Accounts (FSAs) which have changed under the ACA. With an HSA, you contribute from your paycheck, pre-tax, to pay for health expenses such as co-pays and prescriptions. Unlike FSAs, money unspent in an HSA accumulates and earns interest.

Travel Apps Designed for Wherever Your Road Takes You

Whether we’re alone, or on a family vacation, traveling can present all sorts of challenges. Even the best-laid plans go awry, but thanks to our smartphones, we’re always in a position to handle wherever the road takes us, providing, of course, our phones are equipped with the proper applications.

There are apps for everything today, and a plethora of them are focused on travel. Here are some free travel apps to download before you take off:

For the financial whiz
Mint (www.mint.com) holds all of your financial information – from account balances to transactions to investments. Whether you’re in a cab, or in line at Disneyland, you’ll be able to monitor your finances. Mint also allows you to transfer money within the app and is highly secure.

Oanda Currency Converter (www.oanda.com/currency/converter) can help you determine the value of any product in 190 currencies. This app certainly comes in handy, but makes it almost too easy to spend abroad.

For the practical tripper
There never seems to be a bathroom around when you need it…or is there? The SitOrSquat app (www.sitorsquat.com) lists 95,000 bathrooms worldwide, so you can always find one close to you. It includes ratings, so you’ll know whether to sit, squat or keep walking.

Of course, every app uses data, and that means roaming fees. Onavo (www.onavo.com) compresses your downloaded data usage, so that you use less and get more from it. Onavo backs up to a cloud-based technology and provides monthly usage reports.

Total Tech Hotels: The Future is Now

Walking into some hotels can feel like a trip to the future; high-tech hotels are popping up across the globe, offering guests some futuristic technological amenities. And they seem to keep them coming back.

They’re called total-tech hotels or resorts, and their offerings go far beyond cable TV or iPod docking stations.

Imagine a mirror television where you can fix your hair and tune in to the news? Or robots that take your luggage? Or a room key that permits you to enter by scanning your iris? And then there’s the in-room oxygen system that helps guests in a Colorado hotel acclimatize to altitude changes.

Even if you’re not a techie, you can still enjoy visiting a total-tech hotel. They make it easy: Tech amenities are user-friendly and intuitive.

Ensure College Students Have Health Coverage

Going to college is exciting for both “traditional” students – typically age 24 or under – and “non-traditional” students, such as graduate or international students, or those over 24.

It has its challenges, however, including illnesses and injuries. And finding health insurance at any age can be difficult. Even more so, in 2014, when everyone will be required to carry coverage according to the Affordable Care Act (ACA).

Options for traditional students include:

Parents’ health insurance: The ACA permits children to remain on parents’ policies until age 26. This is the best option, but check with providers for limitations. For example, if a student is going to school out of state, coverage may be affected, and the result could be higher co-pays and deductibles and limited availability of in-network care providers.

College health insurance: Many colleges and universities offer student health insurance plans. Prices and coverage options vary by state and school. If a student is able to choose between a parent’s plan and a college plan, college plans are worth considering.

Individual health insurance: If neither of these options will work for your student, individual plans can be purchased from national providers. However, this is the most expensive option, and many may consider it a last resort.

Non-traditional students – including graduate and international students – usually have the same options unless they’re older than 26. Graduate schools often offer plans comparable to traditional student health plans, and individual plans are available.

For students traveling abroad, coverage may become limited outside of a certain region, so student travel health insurance may be the only option. School-sponsored trips may offer coverage, and some providers will tailor coverage to travel plans. Adding emergency medical evacuation coverage and 24-7 help lines are definitely recommended.

When you’re a college student, finding health insurance isn’t difficult if you know where to look. As for paying tuition bills? Well, that’s another story.

Yield Starved? Annuities May be the Answer

A Balanced Portfolio May Not Work for Today’s Retirees

It’s been a no-brainer since retirees first invested money to provide security in their retirement years: Balance your nest eggs between stocks, bonds and cash, because this is most likely to give you the best return on your investment dollar, while minimizing risk.

These days, however, it’s not that simple: with today’s high stock prices and low bond yields, a balanced nest egg might not be the way to go in your individual circumstances.

One option that could work for you is moving your portfolio entirely to cash in the form of money-market funds or certificates of deposit (CDs), especially if you need low-risk investments to preserve capital and provide income. Then you can wait until the market returns to more “normal” behavior to move back into it.

The downside is that these investments may not keep pace with inflation. So you may want to consider other options. One such option is annuities, where you invest a sum of money with an insurance company and receive a guaranteed income for life.

Although fixed annuities offering fixed payouts may not provide the return you could get from stocks, they may beat the yields of cash, and even bonds, but with less risk.

You might even consider allocating just a portion of your portfolio to an annuity, leaving the rest in your traditional allocation to stocks, bonds and cash.

Here’s where you need the counsel of your advisor, who can help you assess the risks and benefits of annuities, and select the option that’s right for you.

Yield Starved? Annuities May be the Answer

Over the past several months, the Dow Jones Industrial Average and the S&P 500 Index – two major stock-market indices – have been flirting with all-time highs, while the bond market appears to be on an upswing. And that’s a good thing…isn’t it?

Not necessarily. Rising stock prices come at a cost: lower dividend yields. For example, during the late summer, the S&P 500 offered a dividend yield of just over 2 percent; if you invested $100,000 in the index, you’d receive just over $2,000 a year in income.

Bonds offer similarly low yields. The 10-year U.S. Treasury note, for example, was 2.5 percent in late summer, and the Barclays U.S. Aggregate Index, which is a broad gauge of corporate bonds, just 3.2 percent. That’s certainly better than the lower bond yields seen earlier in 2013, but it’s still low by historical standards.

According to research by David Blanchett, the head of retirement research for Morningstar Investment Management, and Professors Michael Finke and Wade D. Pfau: “There are no historical periods in the United States where comparable low bond yields and high equity valuations have occurred simultaneously.”

Where, then, is a yield-starved investor to turn?

Immediate annuities may offer better yields than both stocks and bonds, depending on your situation. As you may know, these insurance company contracts provide you with a guaranteed income stream for life in return for a lump sum you pay the company.

Earlier this year, the Wall Street Journal reported that a 65-year-old man, investing $100,000 in an immediate annuity as of August 2013, would receive about $535 a month in income for life. That’s $6,420 a year, or a 6.4 percent yield.

Annuities aren’t always the answer, so it’s a good idea to consult your advisor if you’re considering purchasing one. He or she can help you make the right investment choice for your individual circumstances and goals.

Recipe: Sticky Soy Glazed Turkey Legs

An exotic way to celebrate the holidays on a small scale

4 Serves

• 4 turkey drumsticks
• Salt and pepper to taste
• 1 medium onion, sliced 1/4-inch thick
• 3 tablespoons butter
• 1 cup brown sugar
• 1/2 cup soy sauce

Directions

Preheat oven to 400° F. Season drumsticks with salt and pepper. Place onion slices on the bottom of a roasting pan and arrange turkey legs on top. Dot the turkey legs with butter and roast for about 20 minutes.

Mix together the sugar and soy sauce. Reduce oven temperature to 300° F and brush the turkey legs with the sauce. Continue to roast, while basting the legs every 10 minutes, until meat is cooked through – about 20 minutes. (Cooking time may vary depending on the size of the turkey drumsticks.)

How to Pick the Homeowner’s Insurance Policy That’s Right For You

How to Pick the Homeowners Policy That’s Right For You

Congratulations! You’ve made the decision; it’s time to become a homeowner. But before you even start your home search, look into the kinds of homeowners insurance you’ll need. Follow these tips to protect your new family home for a lifetime:

Insure your home at replacement value

When you purchase homeowners insurance, you have a choice between actual cash value and replacement value. Actual cash value insures your home at the amount it was purchased for. While this seems like a good idea, keep in mind that housing prices fluctuate with the market. Replacement value covers a total loss, including rebuilding and labor costs. It’s pricier than actual cash value, but worth the investment.

Purchase flood insurance or other endorsements

Consider where you live and the correlated risks. Water damage from a burst pipe is typically included in your home policy, but if a flood ruins your basement, you’re responsible for the damage. Live in California? Earthquake damage is also very expensive and isn’t covered by most insurance plans. Find out if you live in a high-risk location that is prone to floods or earthquakes. Floods are the most common natural disaster in the U.S., so the extra insurance cost is worth it.

Set the right liability limits

Most homeowner policies automatically include a $100,000 coverage limit, but that may not be enough. In an accident, you could be held responsible for property damage and bodily injury totaling well over $100,000. Evaluate your personal assets and earning potential to find the right limit.

Time to Break Out the Zombie Costumes

For us, Halloween is all about kids, scary costumes, and candy – lots of candy. But, in fact, October 31 has a somewhat sinister past. By looking back at the history of this annual scare-fest, it’s easy to see how ghost and zombie costumes are everywhere on Halloween night.

The last night of October has had a long association with spirits. Some believe it was inspired by the medieval festival of Samhain, celebrated by the Celts in early Britain. Samhain marked the end of summer and the beginning of the dark half of the year. On this day, the Celts believed, spirits entered the world of the living, and they honored the dead by setting places at their tables to welcome benign spirits. The evil spirits, they frightened off by wearing scary masks and costumes.

In the ninth Century, Samhain became associated with All Saints’ Day, which gave us the word Halloween. On “All Hallows’ Evening”, the eve of All Saints’ Day, people would honor the recently dead who had not yet passed over.

Today, the undead figure prominently in horror flicks, and zombies are the stuff of children’s nightmares. So break out those zombie costumes. Halloween approaches.

Take Your Computer Pill: It’s Good For You

Swallowable micro-computers are revolutionizing health care – and raising concerns.

The size and shape of a pill, these computers monitor your body’s systems and record your vital signs. Some can even follow your body’s response to medications.

They share information with doctors wirelessly, in one case through a cellphone app. Connected to the outside world by a wearable patch, this pill effectively runs on you, generating electricity as soon as it hits your stomach.

Some have raised privacy concerns about wider access to the most intimate goings-on in your body, but robo-pills could help prevent complications in a host of diseases or ensure you receive treatment quickly when needed.

Bambi Collisions Can Raise Your Car Premiums

Fall is deer hunting season, meaning it’s time to hit the brakes for Bambi, and also review your auto insurance.

From September to December, deer migrate and mate, increasing chances of collisions. According to the Insurance Information Institute (III), the top month for deer-vehicle collisions is November, with October second.

Many are serious: An estimated 200 people die in deer-vehicle crashes annually. But even minor collisions will cause costly damage. One large insurer’s claim history indicates that deer hit over one million vehicles in a 12-month period – that’s one million reasons to double check your current policy to be sure you have adequate coverage.

Insurance Hunting

III says the average cost of a deer collision claim totals $2,800. Typically, animal-related damage is covered under comprehensive coverage, not collision, but only if you hit the animal. If you swerve to miss Bambi and hit a tree, guardrail, or other car, it becomes a collision claim.

Although the damage would still be covered under your collision coverage, collision claims are rated the same as at-fault accidents by insurers, which likely means an increase in your premiums. Comprehensive claims – unless several claims are filed around the same time period – won’t generate an increase.

If you have both coverage types, review your deductibles. Raising deductibles is a popular way to save money, but are you ready to pay $1,500 towards deer damage? Even if you answered “yes,” it’s easier to save money by avoiding deer altogether, which you can try to do by following these tips:

Fall Driving Tips

Keep your eyes open between sunset and midnight, and early morning when deer are most active.

If you see one deer, more are likely to follow.

Slow down at deer-crossing sites.

If you have no choice, hit the deer, not another vehicle or object.

Following these tips will help protect you…and hopefully, Bambi.

Avoid These Three Mistakes When Buying a Health Insurance Plan

Term Life Insurance, Is It Right for You?

Many of us think of life insurance as something that will last for the rest of our lives – but that’s not always the case.

So-called “whole” life insurance policies do stay in effect for your lifetime, providing you continue to pay the premiums.

“Term” life insurance, on the other hand, provides coverage for a limited period of time or “term,” and the length of the term is up to you. For example, if you choose a 10-year-term, the insurance company would pay your beneficiary a death benefit if you die within the next 10 years.

Why consider term life instead of whole life insurance? Term life might be appropriate if, for example, one or more of your dependents doesn’t rely on you financially.

In this situation, you may want to have coverage for your minor children only, as your spouse is not now dependent on you financially and will be able to care for himself or herself if you die. Coverage for your children may last until they’re grown, if you choose.

Term life insurance is usually the least expensive way to purchase a substantial death benefit, so if you are in this situation, purchasing term life may be the solution for you.

A few caveats: Term life insurance generally cannot be used for estate-planning or charitable-giving strategies, as other types of life insurance can.

There may also be issues with re-insurability. Say, for example, that you acquire a terminal illness during the term of the policy. If you want to continue holding life insurance when the term expires, you likely wouldn’t be able to do so. However, some policies offer a feature called guaranteed re-insurability to address this.

There are many other factors to take into account when buying life insurance, such as how much life insurance to buy. Your advisor can help you make those determinations.

Avoid These Three Mistakes When Buying a Health Plan

Whether you’re purchasing health insurance through your employer or an independent market, there’s no such thing as “one size fits all” healthcare. Choosing the right insurance plan for you requires careful consideration and research. While fine print can be confusing, it’s worth taking the time to understand the details of your health insurance plan, as well as your personal situation.

Here are three common mistakes many people make in selecting a health insurance plan:

Choosing an inconvenient network: HMO and PPO plans work within a healthcare network. Visiting a doctor outside that network can be expensive. Ensure your primary care doctor is covered by your health plan, but don’t forget to check on specialists and emergency care as well.

Over or under-insuring: A young, healthy individual without dependents may not need as much insurance as one with a family of four. Over-insuring yourself means you’ll pay higher premiums for care that isn’t used. But under-insuring can be even more expensive if you’re faced with a serious disease or accident; even a significant amount of coverage may not be sufficient. So don’t skimp, and be sure to examine the fine print for procedure-specific limits and out-of-pocket maximums.

Focusing on deductibles and co-pays: Trying to limit your out-of-pocket costs with low deductibles and co-pay amounts may seem like a good idea, but could cost you more in the long run. As long as you can afford it, raise your deductible amount and try eliminating co-pays. You might be surprised at how much you really save.

Annuities May Offer More Than Secure Income

Annuities May Offer More Than Secure Income

There is more to annuities then simply having the safety net of a guaranteed “payday.” As an annuitant, your income stream may be higher than you think. But do your homework.

You purchase an annuity from a life insurance company, paying premiums now for what will be a guaranteed income stream in the future.

When you buy a fixed annuity, you will know exactly how much you can expect to receive from the insurance company each “payday,” as the income stream on a fixed annuity is also fixed.

Additionally, by joining a pool of other annuity buyers, you may have access to a higher income stream than you would be able to access on your own.

Why? Because the annuitants in your pool who die younger essentially subsidize more attractive income streams for those annuitants who live longer.

If you like the idea of an annuity, be sure to do some comparison shopping. An annuity’s appeal depends in large part on the size of regular income payments promised, and different annuities are likely to offer different payments.

But this isn’t the only factor you should consider when choosing an annuity: You’ll want to compare the fees associated with the different annuities you’re considering, as well as options such as inflation adjustment.

Finally, be sure to compare the annuity payment to what you might be able to earn by investing the same money in something else. You’ll also want to look at the risk of the annuity as compared to other investments, because the relative safety that an annuity offers may encourage you to accept a lower return.

As simple as they sound, annuities can be complicated, so it’s always wise to consult an advisor before buying one.

He or she can help you navigate the annuity market and make the choice that’s right for your individual financial goals and risk tolerance.

Consider Tailoring an Annuity to Meet All Your Needs

If you like the idea of an annuity but are concerned about putting out a large sum and possibly dying before you receive significant income, you may want to investigate tailoring an annuity to meet your needs.

An annuity is a contract with a life insurance company. You pay a premium now in exchange for a guaranteed stream of income later. That stream of income can last for a specific term (such as 10 or 20 years) or for the rest of your life. With a fixed annuity, that stream is also fixed, so you always know how much money you’ll receive.

The life insurance company that receives your annuity premiums will usually retain the premiums if you die before the annuity term ends. It is this point that can be a source of anxiety for many annuitants.

Fortunately, there is often some flexibility in how an annuity can be structured. For example, you may be able to purchase an annuity that looks after your loved ones after you die by making payments to your spouse or children.

Tailoring an annuity can eliminate a source of stress; however, purchasing an annuity can be complicated, and buying one is not a do-it-yourself task.

It’s a good idea to consult your advisor and work with him or her to ensure you understand what kind of annuity you’re purchasing, what the terms are, and what fees are involved, as all these are important factors to consider.

You may find a tailored annuity meets your all needs.

Warning! Letting Your Insurance Policy Lapse Could Cost You

Three Auto Insurance Facts That Might Surprise You

Even savvy car insurance customers might not be aware of all the little-known facts about car insurance claims and coverage.

1. Your insurance policy will probably cover you while you are in Canada. Driving in Canada is rarely discussed when purchasing auto insurance. Thankfully though, most insurance companies extend your same policy’s coverage while north of the border. Contact your insurer well in advance so they can give you a Canadian insurance card that complies with their regulations.

2. Your insurance policy will probably NOT cover you in Mexico. However, some companies will allow your policy to cover you up to a certain number of miles even after venturing beyond the border, but you definitely need to check first as this varies from insurer to insurer. Additionally, if you need to drive into Mexico more than your insurance company will allow, often companies will have an endorsement you can add to do so.

3. Rear-end accidents are not automatically charged to the person in back. Many people believe when a ‘back-end’ or rear accident happens, it’s always the fault of the person in the back. While this might be true in the majority of cases, it’s not always true. What if there were a person backing up in the street and hit the front end of someone who was parked or completely stopped?

When it comes to insurance, ignorance certainly isn’t bliss. In situations like these, you’ll often realize the implications of your insurance choices or lack of knowledge about your auto insurance far too late and only after something happens.

Warning! Letting Your Policy Lapse Could Cost You

We’ve all had moments when we kick ourselves for forgetting something. You get home from the market and realize you’ve forgotten one ingredient for dinner. You’ve forgotten your sister’s birthday or the annual company picnic. Normally, you can recover from these momentary memory lapses, but no matter what, don’t forget to pay your insurance premium on time! That’s one lapse that could cost you.

Most home, auto, and PC policies contain no grace period. Even if you’re a single day late, the insurance company could choose not to accept your payment and cancel your insurance policy. In most states, it’s illegal to be uninsured. In addition to possible legal fees, there are other repercussions.

The Risks of a Lapsed Policy

Whether a lapse is intentional or not, it’s not worth the risk. Any lapse in an insurance policy can place you in a much higher risk bracket, especially if it’s been 30 days or longer. Once you reapply for

Latest Tech Tools Help Boost Your Business Productivity, and Contractual Insurance Info

Key Person Insurance Helps Protect Your Business

In small businesses, the death or disability of a key employee is difficult to overcome. His or her share in the business normally transfers to heirs. This can cause problems for businesses that may not want a new partner or cannot afford to buy out heirs.

To avoid this problem, many business owners enter into a buy-sell agreement. This “set price” agreement means that upon a business partner’s death or disability, the business is pre-valued, using life insurance as the payment guarantee. Here are five reasons why you should consider this coverage.

• Upon your partner’s death, heirs do not have the expertise to replace your partner. You may find yourself saddled with a partner that is a liability rather than an asset.
• Financing is the lifeblood of almost any business. Banks may insist on this coverage for partnerships or large companies.
• This coverage offers financial security to heirs or those dependent on a key person.
• You and your partner’s personalities may be the driving force behind the business.
• Key persons may be others in your organization, not just partners. Consider how long it would take to replace a long-term employee responsible for training and motivating your sales team.

Determining how much coverage to buy and who name as beneficiary depends your company’s revenue, how much the key person contributes and the type of life insurance. If your partner or a key person dies or is disabled, you should be prepared. Key person coverage can help. Call us today to discuss your business insurance needs.

MARKETING
Do Referrals Help or Hurt Your Business?

If you have developed a healthy, mutually beneficial working relationship with a client and built a solid foundation of trust, there is a potential for referrals.

Most of us understand that leads can often come from referrals within our vendor or colleague pool. Yet have we stopped to consider how much we’re putting on the line each time we give out a referral? You may be jeopardizing your relationship with your hard-won client each time you send out a referral.

They say that who you know and associate with is a reflection of yourself – the same principle applies to a professional environment. The people you work with or refer have a direct impact on your reputation. If they perform poorly, the law of association states that the client you referred will think poorly of you too. After all, it was your judgment call to offer the referral and, essentially, trust another company with their needs.

There are a couple steps you can take to avoid negative impact on your reputation from the fallback of a referral gone wrong.

The next time a client asks you for a referral, recommend two or three competitive options. You should also discreetly disclose any additional information the client might need to make a decision. For example, one vendor might be better suited to a particular market – or perhaps another offers great work, but communication can be a challenge, in which case you could offer tips on how to best communicate with that vendor.

HOT BIZ TRENDS
Latest Tech Tools Help Boost Your Business Productivity

If you wish to seize new opportunities, you will need the right tools for each task. Several popular tech devices and apps help to track work, bill clients and get paid. They can also help overcome the bookkeeping entanglements that impede success.

Many small business owners are using cloud accounting to simplify their bookkeeping. An especially “trendy” platform is FreshBooks, which allows online access by both you and your bookkeeper. This program can send invoices and accept online payments. A little bookkeeping management assures that all sales and expenses are recorded in order to make the financial information you need available anywhere with Internet access.

Organizing receipts for recording expenses is often a dreaded chore. With the NeatReceipts scanner, you can organize paper receipts to assure that future bookkeeping entries are accurate. NeatMobile accomplishes the same mission using your iPhone or Android device. Another hot item for consultants and professionals who track billable time is HourTracker. This app can track time by day, week, month, or project; and you can export the data for easy billing.

The latest trend for obtaining fast payment from customers is using Square, which turns your iPhone, iPad, or Android device into a mobile payment system using a plug-in accessory to swipe credit cards and record payments. Meanwhile, the newest vogue for accepting online payments by credit card without a merchant account is Stripe. It functions like PayPal or Google Checkout, by charging a fee only when you get paid, and you incur no monthly fees or setup charges.

Spending time more productively by deploying fashionable technology keeps your business growing and eliminates the pain of managing financial details.

INSURANCE
Four Things to Know About Contractual Insurance

Managing contractual insurance requirements from your vendors and subcontractors is rarely straightforward, but it is an integral part of risk management.

Insurance requirements under any contract can be difficult to administer, because the more complicated the project or service, the more sophisticated vendors’ and subs’ insurance programs may be.

When evaluating deductibles, self-insured retentions (SIRs) or available insurance limits, your organization can take a variety of approaches.

How you approach insurance requirements should depend on at least these four considerations:

• How critical the services the vendor furnishes are to your organization’s mission.
• The size and scope of the contract, including the exposure (what can go wrong that can cost you money or goodwill) your organization faces from the proposed project or service.
• The financial stability of the vendor or supplier, and the financial rating of its insurance carrier.
• Your history with that vendor. A new vendor requires more scrutiny than one you have utilized for years.

Since the vendor or supplier has to pay premiums and will want to pay for less insurance rather than more, deductibles, limits and scope of coverage are all bargaining chips to the vendor. For example, a small contractor who performs routine maintenance at your facility may balk at furnishing $1 million in general liability coverage. For a small project, you may agree to lower that limit.

However, in one particular case that occurred in a Hawaiian hospital, a contractor cut the power to an oxygen line to premature babies. Hospital maintenance responded quickly; however, $1 million in coverage would never have settled this accident if the incident had not ended so well.

SIRs are the loss portion that the insured absorbs before insurance coverage pays. Accepting an SIR requires additional deliberation.

Deductibles are generally paid by the insurance company, which then recovers that amount from its insured. In the event of a loss with an SIR, in most case you will negotiate directly with your contractor to obtain the SIR amount.

The larger the company, the more likely they are to have an SIR as opposed to a deductible. SIRs usually pertain to liability policies, and may apply both to damage payments and expense amounts paid to handle the claim, or only to the damage amounts.

This difference can be tricky, because SIR provisions vary. Reviewing policy provisions and endorsements before a loss occurs is the only sure way to determine how a claim will be handled. You will be more comfortable accepting an SIR in lieu of a deductible, knowing that the vendor’s insurance company would not write coverage with an SIR if the company’s operations, loss history or loss funding were unstable.

Like everything in life, insurance coverage is negotiable. If you have questions on the insurance requirements your company should request, we are here to assist.

Why Retweeting May Necessitate a Retwaction, and Healthcare Info

Time to Get Ready for Next Year’s Healthcare Changes

As 2014 approaches, the Affordable Care Act (ACA) will bring many changes not only for American citizens, but also for doctors and insurance companies.

How it Impacts You

If you already have health insurance, 2014 will proceed normally. If you don’t purchase health insurance, you could incur a penalty. If you purchase health insurance through a state exchange, you may qualify for a federal subsidy if your income is less than 400 percent of the federal poverty level. That’s around $43,000 per year for singles, and $92,000 for families. There are two types of subsidies:

Premium Assistance Tax Credit: These reduce the amount you pay for healthcare through tax credits. The amount is determined by a sliding scale based on income.

Cost-Sharing Assistance: This subsidy lowers your out of pocket cap based on your income.

How it Impacts Doctors

Primary care will be the focus in 2014. Financial incentives will be offered to primary-care doctors. Overall, medical facilities will be pressured to keep practices cost effective while encouraging patient health. Funds have also been dedicated to healthcare innovation studies.

How it Impacts Insurance Companies

Insurance companies can no longer deny citizens with pre-existing conditions healthcare or charge higher premiums. Lifetime limits are banned and insurance companies must spend 80 percent of premiums on actual medical care. High-dollar advertising budgets and administrative costs will feel the crunch, but it also means lower premiums for you.

Why Retweeting May Necessitate a Retwaction

They say “Googling before you type is the new think before you speak” – a relevant reminder in a social climate where we quickly like or share Web material.

Arguably, the rule to think before you speak is most pertinent when it comes to Twitter. In the entire sea of social media, Twitter represents the most challenging can of worms. Whereas other social networks offer a private network of contacts and limit what can be shared outside that network, Twitter offers no such parameters. With Twitter, once you say something, it’s out there for the world to see and share. It’s the proverbial game of telephone for the digital generation.

Just as in the game of telephone, Twitter users can modify a tweet before retweeting it. Though this is premised with “MT” (meaning “modified tweet”), the entire meaning of a message can change with only a few minor modifications. What you initially said might not be what someone five times removed is retweeting, and you are credited as the source – even be it with an “MT” stamp.

Enter Retwact. This Web-based service helps people write and share corrections on Twitter. The platform lets users view reshared tweets and offers a series of recourse options for retractions. Users can either (1) write a retraction tweet, or (2) send an #RTRetract hashtag via the Retwact Twitter account to all original retweeters. Retractions are easily made and clarification is simplified in unison with a side-by-side tweet of the original and corrected tweet.

Give Your Child a Great Start With a New-Look Bedroom

A new school year can both frighten and thrill children. Help them cope with changes out of their control by involving them in a change they can control: decorating their bedroom.

Treat your child’s room with as much care as you gave their nursery. And now that they’ve left the crib, let them help decide how “their space” will look. Give them design books and magazines. Look at paint chips, wallpaper and fabrics together. Pay attention to their interests – they may inspire accents and decorations. Old records can become decals on the wall; sports equipment can become places to hang uniforms. Have fun together. Sure, you may send them to their room later for punishment, but that doesn’t mean re-decorating has to be a chore.

It may be their room, but it is still your house. Do your own research, and not just about budgets. A new coat of paint provides the most economic decorating change. Stick to two or three colors and avoid paints with volatile organic compounds. Pick colors that will encourage learning and relaxation – while black walls may be a teenager’s dream and a parent’s nightmare, some decorators consider it classy. Give your children a space to play and be kids. Consider banning, or at least limiting, electronic devices. If your child has special needs, ask an educator or therapist about what play equipment is best for them.

Finally, relax. Your child needs a good home more than a room – and that begins with you.

What the Individual Mandate Means for You

One thing is certain for 2014: With the implementation of the Affordable Care Act (ACA), major changes are underway that affect more than just your healthcare options.

The most significant provision of the ACA requires all Americans to have healthcare. Known as the individual mandate, this portion of the bill imposes a penalty on those without coverage, but allows for certain exemptions. So, how will the ACA affect your taxes?

The Individual Mandate

Starting in 2014, your health insurer must file a report containing information regarding who is covered and the forms of coverage provided.

In 2015, when you file your 2014 tax return, you’ll be asked whether you had health insurance. If the federal government finds you didn’t have healthcare insurance and you didn’t qualify for exemptions, you’ll be issued a penalty. This penalty will be subtracted from your tax refund and starts at $95 per person and $285 for a family of three. The penalty will increase until 2016, when further increases will be reviewed.

How Do I Qualify for Exemptions?

Those exempt from the ACA individual mandate include:

• Illegal immigrants
• Certain religious members
• Inmates
• Native Americans
• Those with income below taxable level
• Those who pay more than 8 percent of their income for healthcare

Others participating in the federal health program may also be exempt. If you already have health insurance, don’t worry about penalties and exemptions, and if you don’t have health insurance, new state exchanges give citizens another avenue for comprehensive coverage at an affordable rate.

Whether you’ve been in support of the ACA or not, it’s here, so it’s not too early or too late to start exploring your healthcare options to avoid a tax penalty

Why Investors are Flocking to Fixed Annuities

Why Investors Are Flocking to Fixed Annuities

There are two primary types of annuities available to meet the needs of different investors: variable and fixed. But many investors are choosing the fixed annuity. Let’s explore why.

Variable annuities accumulate and distribute income based on the performance of the investments in which the purchaser’s money is placed. Essentially, with a variable annuity, you choose from a range of investment options called subaccounts, each of which invests in shares of a single mutual fund or, in some cases, in a fund of funds. The upside: You can make investment choices based on your individual needs. The downside: The investment return of variable annuities fluctuates, both in the accumulation phase and the payout phase. As a result, you could lose money, and that could diminish your retirement nest egg.

That’s why many investors prefer fixed annuities, which accumulate and distribute income in guaranteed amounts. Essentially, with a fixed annuity, an insurance company guarantees you a minimum interest rate on your investment during the accumulation phase. When the payout phase arrives, your payments are determined based on rates guaranteed at the time the annuity was issued. They are also guaranteed for the selected duration, such as the owner’s lifetime or a specified number of years.

As a result, fixed annuities generally involve less risk than variable annuities, because they are not affected by fluctuations in the market. Some retirees like the security of knowing that their income is predictable. If that’s the case with you, please contact us today to learn more about fixed annuities.

Planning for Retirement With an Annuity

With the oldest baby boomers turning 67 this year, retirement income planning services, which help investors turn their retirement savings into a steady income stream at retirement, are growing in popularity. However, there’s another way to achieve the same thing – with an annuity.

First, let’s look at these retirement income-planning services. When it’s time to retire, many Americans have assets in 401(k), and the challenge is turning those assets into income. To help, more than a quarter of 401(k) plans have a service that converts assets into income. With this service, a professional advises the retiree as to how best his or her assets can provide sustainable income.

As an example, consider a 65-year-old woman with $250,000 in assets who needs that money to cover her retirement expenses. A retirement income-planning service might place $200,000 in bond funds and the remaining $50,000 in stock funds. Over time, this service would gradually move the $50,000 into bonds to accommodate the retiree’s decreasing time horizon and risk tolerance. How would that strategy work out, assuming the stock market delivers average annual returns of 5.5 percent? The retiree would be able to withdraw $9,375 in income in her first year of retirement, and increase that amount by up to 3 percent in each subsequent year. Enough money should remain when the retiree is 84 to purchase a fixed annuity that will provide a comparable income for life.

The downside? These services can be costly. In many cases you’ll pay an upfront planning fee, and almost always a percentage of your assets each subsequent year. You’ll also be responsible for fees charged by the mutual fund in which you invest.

Another option is to put the money in a fixed annuity from the start. It, too, will help ensure that you don’t outlive your savings, achieving the same goal in a slightly different way.