Archives: 2017

Why A Growing Business Needs To Look Into Key Person Insurance

In a small, thriving business, the death of a key employee could cause the business to collapse. It could be an owner, a founder, a key salesperson, or any other important player. Life is full of uncertainties, but key person insurance helps protect your business should the unexpected happen.

How Key Person Insurance Works

Key person insurance is life insurance on a key person in the business. The business pays the premiums and the business–not the deceased person’s family–is the beneficiary under the policy. If the insured key person dies unexpectedly, the business receives the payoff. The purpose of this coverage is to help the business survive the loss of a key person who is critical to the success of the enterprise.

Key person insurance can help a growing business avoid bankruptcy should a tragedy occur. The company can use the proceeds from the insurance policy to:

• Cover expenses until a replacement can be found for the deceased key person
• Help the business get back up to speed

Or, if necessary, it can be used to:

• Pay off company debts
• Distribute funds to investors
• Pay severance to employees
• Close the business down in an orderly manner

Does Your Business Need Key Person Insurance?

Most large businesses have a number of experienced executives and employees who can take up the slack when a key person is lost to unexpected death. On the other hand, most small to medium growing businesses rely on a few key individuals to make things work. In many small businesses, the founder is an irreplaceable key person who holds it all together, and without whom business would come to a stop.

To determine if you need key person insurance, take a good look at your business. Does it have certain irreplaceable key people whose contributions are crucial to its success? Without those key people, would the business likely collapse? If so, it would be wise to consider purchasing key person insurance.

How Much Key Person Coverage Does Your Business Need?

The amount of key person insurance to purchase for your business will be determined by balancing the financial needs of your company against the amount of the premiums. As with any other life insurance policy, the greater the face amount, the higher the premiums. Term policies typically have lower premiums than whole or variable life insurance policies.

To gauge the amount of key person insurance to purchase, consider how much it would take for the business to survive until the key person could be replaced and get back on its feet. As a general guideline, buy as much key person insurance as your business can afford.

Shop Around for Key Person Insurance

It pays to shop around for a key person insurance policy. Compare quotes on different policies ranging from $100,000 to $1 million. Our knowledgeable agency can help you find a key person insurance policy that will fit your budget and address the short-term cash needs of your business should the unexpected death of a key person occur.

November’s FREE Night Out Raffle Winner

Greetings! 

I hope you had a great Thanksgiving.  We had a fun time at my sister’s and after dinner we moved right into the Christmas season.  My sister didn’t miss an opportunity to put me to work for her and had me put up her Christmas lights.  We will be getting our Christmas tree this weekend in between soccer for Jack and Kaci and Jack’s first swim meets.  The kids have thoroughly gone through all of the Christmas ads and mail order catalogs that we’ve received and circled and highlighted everything they want.  I think it would easier to buy the stuff they didn’t circle, they circled so much stuff.  I feel bad for the kids who will be waiting behind them in the line to see Santa because I imagine they will be a while letting Santa know everything they want  



Tuesday December 5th Andrea, Marianne and I will be ringing the bell for the Salvation 6-8pm at the Greece Ridge Mall at the JC Penney entrance.  If you are at the mall stop by and say hello and help us raise money for a great organization.  It looks like the weather will be more mild at around 52 degrees than it was for us last year when we couldn’t feel our toes or fingers when we were done.

 

Check out this month’s free night out raffle winner.  Remember, if you want to be next month’s winner, all you have to do is refer a friend or family member to our Agency and I’ll send you a $10 gift card AND enter your name into our monthly free night out raffle, no purchase necessary to be entered.

Drive Safe,

Rhett VanScoter, CIC, CPA
Independent Agent/Owner
585-663-2004 

Will Your Auto Insurance Cover Your Passengers?

Although no road trip can be completely risk-free, driver diligence can help prevent accidents. As the driver, there are steps you can take to help ensure you and your passengers remain safe. If the worst happens and an unpreventable accident occurs, your passengers will be covered – provided you have the right auto insurance policy.

What You Can Do to Help Keep Your Passengers Safe

• Prepare your vehicle for the trip: Check the air pressure in your tires and the fluids in your vehicle, including the windshield washer fluid. Check your headlights and replace bulbs as necessary. Clean your windshield and windows, inside and out. Clean out the clutter to improve visibility and eliminate potential projectiles in an accident, as well any item that could become jammed under the pedals.
• Make sure you are well rested, sober, and seated properly: Although modern vehicles protect occupants better than ever, the driver is still the number one factor in safety on the road. Avoid driving drowsy, as this is a leading cause of accidents. Adjust your seating for maximum visibility and control of the vehicle. It is a given that you should never drink and drive.
• Use seat belts and proper child restraints: Seat belts should be in use at all times the vehicle is in motion, both in the front and back seats. If your passengers include children who are required to ride in boosters or safety seats, ensure they have the right type of seat and it is properly installed.
• Watch your speed: Excess speed is a contributing factor in many accidents. The faster you are traveling, the greater the impact in a collision. Obey speed limits, check your speedometer periodically, and maintain a safe speed for the existing road conditions. Always reduce speed in rainy or freezing conditions.
• Avoid distractions: Driver distraction is a leading cause of accidents on today’s roadways. Texting while driving is one of the most dangerous types of distraction, as it involves manual, visual, and cognitive functions. Passengers in a vehicle can also be a serious driver distraction, so keep conversation to a minimum. Ensure that children and pets are safely secured and children old enough to wear a seatbelt are seated in the back of the vehicle.

What Type of Auto Insurance Is Needed to Cover Your Passengers?

In basic liability auto insurance policies, bodily injury limits covers passenger in another vehicle only. To ensure your passengers are covered in case of an accident, you need a full auto insurance policy with medical or uninsured/underinsured motorist coverage.

A full coverage auto insurance policy that includes medical and uninsured/underinsured motorist coverage provides protections for you and your passengers no matter who is determined to be at fault for an accident. The cost of this coverage depends on various factors, including policy limits. Our agency can help you purchase the right auto insurance coverage at the best available rates to help keep yourself and your passengers safe.

Do You Need Business Insurance When Working Out Of Your Home?

Many small businesses in the U.S. today are home-based. For a small business owner or entrepreneur, working out of the home has many advantages. It is convenient, cost-effective, and comfortable, and you can skip the daily commute and wear pajamas or sweats all day if you like.

However, conducting business in the comfort and convenience of your own home does not make it risk-free. You are running a real business and, like any business, it needs to be insured. You can still be sued or suffer unexpected property losses.

Homeowners and renters policies do not cover home-based businesses. Our agency can help you find the right business insurance policies for the coverage your home-based business should have in place.

Types of Coverage You May Need for a Home-Based Business

The business insurance you need will depend on the type of business you are running out of your home. Possible business insurance coverage you should consider may include:

• Property insurance: The typical homeowners policy will not cover business equipment losses caused by fire or flooding. You need business property insurance if you use any type of equipment in your home-based business, including computer, printer, fax, furniture, etc.
• Liability coverage: You need business liability coverage if you have anyone coming to your home for business purposes. This can include clients, contractors, and any person making a delivery to your home business. A homeowners policy will not protect you from a claim made by a business visitor who is injured on your property.
• Professional liability insurance: Professionals working out of their homes need professional liability coverage as much as professionals working in a firm. This insurance protects you from potential claims made by clients of negligence or a failure to deliver.
• Product liability coverage: This coverage may be necessary if your business makes or supplies a product. Product liability insurance protects your business from claims of damages caused by your product to a person or property.
• Business auto insurance: If you are in an accident while using a vehicle for business purposes, your personal auto insurance may not cover your losses. You need business auto insurance to be covered in this situation.

Get Professional Assistance with Your Business Insurance Needs

Depending on what type of business you have, there are several other types of insurance coverage your business may need. For example, you may want commercial crime insurance to protect your home-based business against theft, fraud, and crimes. If your business has employees, you may need to carry workers’ comp insurance.

Your business insurance premiums will depend on what type of business you are running out of your home, what types of coverage you need, whether you have employees, the location of your business, and a several other factors. Our knowledgeable agency is well-versed in the business insurance requirements in a wide range of industries. We can help you ensure that you have the coverage your business needs at the best available rates.

October FREE Night Out Raffle Winner

Greetings! 

October was a fun month for us.  We had Riley’s 2nd birthday…it was the night that the lights went out from the windstorm, but nothing some glow sticks and candles couldn’t fix.  The Agency had a bowling outing at Empire Lanes in Webster.  It was a lot of fun to get out of the office and have some friendly competition…Marianne schooled us bowling.  We knew we were in trouble when she showed up with her own ball!  

Kaci, Jack and Riley had fun on Halloween.  Kaci was a vampire, Jack a mummy and Riley a cupcake.  It was a cold night, but they didn’t care.  We think Riley enjoyed it the most, she didn’t want to skip a house.







We are collecting non-perishable food items to donate to the Greece Ecumenical Food Shelf that will be part of Thanksgiving food baskets delivered to families in need, in the Greece and Charlotte area.  Thanksgiving is a happy time for most people, getting together with family and friends, but it can be stressful for people who are strained financially to create a Thanksgiving meal.  Help us make their Thanksgiving a more joyful by removing the burden of having to purchase all of the items for a Thanksgiving meal.  You can drop your non-perishable food items off at our office anytime before Wednesday 11/15 or if you are not able to make it to the office, send me a note and I will pick up your donation at your home Saturday 11/4 or 11/11. 

 

Check out this month’s free night out raffle video.  Click on the picture below to watch the video or cut and paste this link into your web browser:  https://youtu.be/GUvWYiv8NUE.  Remember if you want to be next month’s winner, all you have to do is refer a friend or family member to my Agency, and I’ll send you a $10 gift card AND enter your name into my monthly free night out raffle.

Drive Safe,

Rhett VanScoter, CIC, CPA
Independent Agent/Owner

585-663-2004

Does Homeowners Insurance Cover Landscaping?

Your yard is an important part of your home and requires a great deal of time, effort, and money to maintain. Landscaping can suffer damage from fire, theft, and vandalism, just like the inside of your home.

If you have worked hard and invested a lot of money to create a beautifully landscaped yard, you may be wondering whether homeowners insurance will cover your trees, shrubs, and landscaping in case of damage. Most homeowners policies provide coverage under certain conditions.

Landscaping Damage Typically Covered by Homeowners Insurance

Standard homeowners policies generally provide protection against damage to landscaping, trees, and shrubs caused by:

• Fire
• Explosions
• Lightning
• Vandalism
• Theft
• Riot
• Vehicles (someone else’s)

Weather-related damage (other than lighting) is not typically covered by homeowners insurance. This includes any damage to trees, shrubs, and landscaping caused by wind, hail, rain, ice, and snow. Similarly, damage to plants caused by disease or insects is typically not covered.

Most homeowners policies have limits on how much coverage is available to restore damaged landscaping. There may be limits on how much a policy will cover for each tree or shrub. Under certain policies, landscaping coverage may be limited to a percentage of the total protection provided for the dwelling structure.

Homeowners Insurance and Fallen Trees

A large tree that falls in a strong wind or for any other reason can do a great of damage to structures, in addition to the damage to the tree itself. If weather conditions caused the tree to fall, your homeowners policy may not cover the cost of replacement.

However, if the fallen tree damaged your home, a shed, or a fence, your homeowners insurance may pay to have the tree removed and to repair the damaged structure. If the fallen tree did not damage any structure, most policies will not cover tree removal.

As an important note, insurance will not typically cover structural damage from a fallen tree that results from lack of maintenance. For example, if a tree on your property begins to rot and later falls, causing damage to structures, your homeowners insurance may not cover the damage.

Additional Coverage to Protect Your Landscaping

If you live in an area where weather conditions are likely to cause damage to trees and landscaping, you may want to consider obtaining additional coverage to protect this important investment. Extra coverage may be available to pay for removal of fallen trees and debris caused by wind, hail, or the weight of snow, sleet, and ice, even when no structure was damaged in the weather event.

You may also consider purchasing additional insurance to increase your landscaping coverage limits. The premium you pay for homeowners insurance is based on several factors, including the location, age, and condition of your home, policy limits, and the deductible you choose for your policy.

A well-landscaped yard is a big investment that adds to the value of your home. It makes sense to protect that investment. Our friendly agency can help you find homeowners insurance with the landscaping coverage you need at the lowest available rates.

7 Exclusions To Your Typical Life Insurance Plan

Life insurance is one of the most effective ways to ensure your family is protected. Should you suddenly become incapacitated or pass away, life insurance funds can be paid at once to the named beneficiaries without any concern about taxes or delays related to probate. However, when buying a life insurance policy, the one person who truly has your back is your agent.

Every life insurance company and individual policy varies in the terms of the policy, cost, and exclusions. However, the most common exclusions and provisions found in life insurance policies include:

• Failure to disclose a known health condition. If you buy a life insurance policy and have a health condition that you don’t reveal, the life insurance company has the right to contest the payment of benefits. 
• Accidental death life insurance policies only cover accidental death, not death from natural causes, illnesses, or diseases. It is advised that you are covered for all eventualities, rather than only accidental death. 
• Exclusions for illegal or intentional acts. Many policies have an exclusion in which the death benefit will not be paid if you die while under the influence of drugs or alcohol, or while committing an illegal act of any type.
• Death by suicide. This exclusion is generally written to state that if the person commits suicide within the first two years of owning the policy, the policy will pay out only the amount paid in premiums, not the death benefit.
• Dangerous activities. This exclusion can come into play in cases in which a person dies while engaged in a dangerous activity, such as mountain or rock climbing, racing, etc. If you are an extreme sports enthusiast, make sure you understand the fine print. You may be able to obtain coverage for these activities by paying a higher premium.
• Aviation. This exclusion means that the insurance company will not pay if the insured person dies in a private plane accident, and only pays for death on a commercial flight.
• War. Death from acts of war may be excluded in many policies.

Your Life Insurance Agent Can Help

When purchasing the right life insurance policy, get help from our friendly local agency. Your policy can be customized to meet your specific requirements and lifestyle choices.

We work closely with each of our clients, we always seek the best coverage at the lowest rates, and we discuss the policy exclusions so you know before you go. 

September FREE Night Out Raffle

Greetings!

I can’t believe how quickly September has come and gone.  I can tell this school year is going to fly by for us.  Kaci and Jack have both joined the Irondequoit Gators swim team this year, so they are busy swimming 2-4x/week.  Jack is also taking a gymnastics class and Kaci is taking dance, so our evenings are happily filled chauffeuring them to their practices.  September is always an adjustment getting back to the school routine, below is a picture of the kids ready for the first week of school.  Christine and Jack both celebrate birthdays in September.  Jack turning 6 and Christine celebrated an anniversary of her 29th birthday (I won’t disclose which anniversary it is).  And yes, that is the best picture we could get of the all of us on Christine’s birthday, between the 3 kids, someone is always making a face, haha.    

   

Check out the video below to see if you are this month’s free night out raffle winner.  Remember if you want to be next month’s winner, all you have to do is refer a friend or family member to my Agency and I’ll send you a $10 gift card AND enter your name into my monthly free night out raffle ($50 movie/restaurant combo pack). 

 

 Drive Safe,

Rhett VanScoter, CIC, CPA
Independent Agent/Owner
585-663-2004

The Importance Of Key Person Insurance For Small To Midsize Businesses

Key person insurance is life insurance on a proprietor, partner, or a valued employee who is key to the successful operation of a business. Small and midsize businesses typically have one or a few key persons who are primarily responsible for generating revenue. Examples include the partners in a two-attorney law firm, the sole cosmetologist in a small beauty salon, or the owner-founder chef of an independent gourmet restaurant.

In the event of the sudden death of a key person, the business may fail or face serious financial difficulties. Proceeds from a key person insurance policy can help the business avoid bankruptcy in this situation. They can help cover expenses until a replacement can be found for the key person who passed away and get the enterprise back on track, or they can make it possible to pay off company debts, pay severance to employees, and close the company down properly.

How Does Key Person Insurance Work?

The business or company purchases a life insurance policy on the key person and pays the premiums. The business is the beneficiary of the policy. If the key person should die, the business would receive tax-free death benefits from the insurance company, which could be used to help keep the business running and to provide an alternative to losing the business to bankruptcy.

Who Is a Key Person in a Small to Midsize Business?

Many small to midsize businesses deliver a service to their customers or clients and may depend on a few key individuals to deliver the service that generates the revenues. They might be owners, partners, or key employees who have become indispensable to the continuing success of the business.

The ability to generate revenue is not the only factor to consider in evaluating a key person. The value to the business of a particular individual may lie in that person’s client list, technical skills, marketing results, or industry knowledge and experience. In a small or midsize business, it is not difficult to determine who the rainmakers are based on marketing successes and new and recurring revenues.

What Businesses Need Key Person Insurance?

Different companies need key person insurance for a variety of reasons, but it is most important for small to midsize businesses. The reason is that smaller businesses depend for their success on the knowledge and skills of a smaller number of individuals, and the death of a key person could mean the demise of the company or enterprise.

Businesses that should consider purchasing key person insurance include:

• Start-ups
• Businesses that need to secure financing
• Companies in niche markets where potential replacements may be scarce
• Businesses in which the owner wants to ensure liquidity in case of death or disability

Key person insurance can be a valuable tool for planning business succession, as it provides liquidity to transition the ownership of the company. The cost can depend on several factors, including the amount of insurance you need and the type of policy – term, whole, or variable life insurance. Our seasoned insurance agency can help you determine how much key person insurance you need and the best type of policy for your company.

When To Time Your Life Insurance Purchase

Having a young family is the busiest time of life, and raising little ones tends to tie up a majority of the available time and attention. Young parents may forget that putting a term life insurance policy in place is an important matter. Over the younger years, these policies are at their most affordable rates. Protecting your family with term life insurance can bring you peace of mind and security – you can be confident they will be cared for should you suddenly pass away or become incapacitated.

Even the wealthiest people typically have substantial life insurance so that their heirs can gain access to immediate financial support without adding to the tax burden. For others who may not be wealthy, having the knowledge that they are not leaving their loved ones in a difficult financial position is the inspiration for putting term life insurance in place.

Unfortunately, as we age, our access to low cost term life insurance diminishes, particularly if there are any health issues. In fact, most underwriting companies deny term life insurance coverage to those over 75 years of age, even for applicants who are in good general health.

We speak to many people who are middle-aged and beyond who are looking for affordable life insurance. Depending on age, we have several options to choose from.

Why Do You Need Life Insurance?

The older a person is, the more they pay in term life insurance premiums. Young people often forget to consider the importance of getting term life insurance. In fact, should a young parent pass away, the benefits provided to the family will protect them from financial disaster, particularly when the individual was a breadwinner whose income supported the family.

Not a Senior Yet?

While it is never too late to have life insurance, it is far less expensive to buy term life insurance early on. Young, healthy people have more choices and are attractive customers for insurance companies. Term life insurance during these years is very affordable and provides substantial benefits. These policies are available for a set number of years at a specific rate.

Deciding on the what term life insurance policy to buy is a hurdle that many people feel ill-equipped to manage. There are many life insurance products available; we understand that the subject can be confusing, and we are here to help make the process simple.

One of the services we offer at is a thorough evaluation our client’s needs now and into the future so that we can recommend the best option in term insurance. We have many years of experience helping people get life insurance at all phases of life.

If you don’t have life insurance and would like to find out what term policy is the best option for you, a quick call to set up a meeting is all that is needed to start the process. Whether we meet you in person or speak on the phone, we are confident we can help.