2016 | Boizelle Insurance Partnership - Page 3
Use Just a Tiny Percent of What You Already Spend to Protect Your Kids
Do you know how much it takes to raise a child these days? Are you sitting down?
That would be almost a quarter of a million dollars.
It costs $245,000 to raise a child born in 2013 until they hit 18, according to the U.S. Dept. of Agriculture.
This is not about a luxury upbringing. This is no Kardashian-esque baby outfitted in cashmere onesies. This is not about a privileged college education, because these numbers do not include the cost of college. That’s extra. Add on about $18,000 a year for public and $41,000 a year for private college.
This number—$245,000—is a place to live, food, clothes, health care…the basics.
You’re here to take care of these expenses now. But what happens if something were to happen to you? If an average middle-income family is spending around $13,000 a year on their child, that money would have to come from somewhere.
That’s where life insurance comes in. If you take between one and two percent of what you already spend on your child each year—or about $200—it could pay the yearly premium for $250,000 in term life insurance coverage. If something happens to you, your child would be okay financially.
We’ve used a healthy 30-year-old dad or mom (who doesn’t smoke!) who gets a 20-year level term policy for the above example. Age and health will vary the amount of your premium—as your age increases or health decreases, the price goes up.
But the truth is, setting aside one to two percent of what you’re already spending on your child is a small price to pay to protect them. There’s no reason to wait. To help you figure out how much life insurance you might need, contact Boizelle Insurance. We can help you decide the amount and type of protection is right for you, and how affordable life insurance can be to protect the ones you love most.
By: Erie Insurance
Read moreHow Much Life Insurance Do You Really Need?
Some people equate life insurance with tragedy and death. In truth, life insurance is for the living. Without it, the sudden demise of a key breadwinner could leave a family stranded without the resources to maintain their lifestyle—or even retain their home.
Not so long ago, professionals recommended that families carry a life insurance policy with a death benefit of 10 times their annual household income. Today, however, in light of rising house prices in many parts of the country, spiraling college costs and low interest rates most advisors now recommend up to 20 times your household income.
Unfortunately, most American families are underinsured. The gap between what households have and what they need is nearly $320,000, according to LIMRA’s study Closing the Life Insurance Gap, 2015.
If you’d like to get a working idea of how much life insurance you may need (or how much more you may need), you can use our quick Life Insurance Needs Calculator.
A Cornerstone of Your Financial Plan
Life insurance is a cornerstone of your financial plan, for these reasons.
- It provides income replacement. For most people, their most valuable economic asset is their ability to earn a living. If you have dependents, then you need to consider what would happen to them if they could no longer rely on your income. A life insurance policy can also help supplement retirement income, which can be especially useful if the benefits of your surviving spouse or domestic partner will be reduced after your death.
- It covers outstanding debts and long-term obligations. Without life insurance, your loved ones must shoulder burial costs, credit card debts, and medical expenses not covered by health insurance using out-of-pocket funds. The policy’s death benefit might also be used to pay off a mortgage, supplement retirement savings, or fund college tuition.
- It can be used for estate planning. The proceeds of a life insurance policy can be earmarked to pay estate taxes so that your heirs will not have to liquidate other assets to do so.
- You can use it to support a charity of your choice. If you have a favorite charity, you can designate some or all of the proceeds from your life insurance to go to this organization.
Remember, Boizelle Insurance can help you determine what coverage is right for you and your family. Give us a call today to get started.
Originally Posted by: Marvin H. Feldman, Life Happens
Read moreAre You Covered When a Customer Claims Harassment, Discrimination?
You probably never want to imagine that a customer would sue you or your business for discrimination or sexual harassment, but it does happen unfortunately.
Customers, vendors, clients or other non-employees may allege that one of your employees engaged in a wrongful act such as sexual harassment or discrimination (age, sex, race, disability, etc.).
“Businesses that deal directly with the public generally have more vulnerability to customer claims or third-party claims,” said Christie Lucas, vice president and business insurance product manager at Erie Insurance. “Given the very nature of their business, they have more exposure to these risks.”
Businesses that deal with the public routinely could include restaurants, retail stores, auto dealerships, contractors, hotels, religious institutions, schools, medical offices and real estate professionals, among others, Lucas said.
Are you covered?
The next question in your mind should be are you covered? Many business owners may not realize —or realize too late—that they have a gap in their insurance coverage.
Most standard Employment Practices Liability Insurance (EPLI) policies generally offer a measure of protection against lawsuits brought on by employees alleging wrongful acts (sexual harassment or discrimination) or wrongful termination. But EPLI generally does not cover you when a customer sues you for discrimination or sexual harassment.
What is third-party coverage?
To narrow the gap in coverage, you may want to add third-party EPLI coverage, which you can purchase and add to your policy as an endorsement. An insurance professional like Boizelle Insurance Partnership can tell you more about the benefits of the coverage and cost.
In addition to checking on your insurance coverage, it’s equally important to do all you can to prevent third-party claims. Businesses should have harassment and discrimination policies in place and conduct employee training routinely.
Erie Insurance customers have access to loss prevention resources from Hartford Steam Boiler, ERIE’s partner in offering this coverage. For example, you would have access to online resources such as model employee handbooks, policy checklists and a library of web-based training topics. A legal helpline is also available so you can connect with an experienced attorney to talk about specific issues and concerns. If a covered claim occurs, you’ll also have access to claims professionals and attorneys who have experience with these sensitive matters.1
1 Coverage and associated services provided under an arrangement with The Hartford Steam Boiler Inspection and Insurance Company.
By: Erie Insurance
Read moreWhat is Boat Insurance and Why Do You Need It?
When you think of insurance, you probably think of the most common insurance policies: life, health, home, and auto. But if you’re a boat owner, there is another insurance policy that needs to be at the top of your list – boat insurance.
Unlike automobile insurance, boat insurance is not required in every state. Having such a policy for your boat, however, protects your financial security should an accident occur.
“Boat owners should at least carry liability insurance, which covers them for any damage they may cause to someone’s property or if they cause an injury to someone else,” says Dave Freeman, vice president of Personal Lines Underwriting at Erie Insurance. “If you want protection for your own boat – including permanently attached equipment, any boating equipment and accessories, outboard motors and boat trailers – you need to carry physical damage coverage.”
The comprehensive physical damage coverage Freeman mentions protects you in the event your boat sustains direct physical loss of or damage to your boat, equipment, motor and/or trailer. Another more basic coverage is Named Perils coverage that protects you should an accident occur due to fire, lightning, cyclone, tornado, windstorm, theft, vandalism or malicious mischief, collision while waterborne, collision, overturn and derailment on land or the loss of the entire motor overboard.
Another coverage every boat owner should consider is the uninsured boater’s protection policy that covers insured boaters if they are ever involved in an accident with an uninsured boater.
While most claims would be covered under these coverages, boat owners looking for more protection may also consider a medical payments coverage that covers injuries sustained on a boat. You might also consider emergency services coverage in case emergency service to the boat is required. You also have the option to insure your boating equipment and even the personal effects you bring on your boat, such as clothing, fishing equipment, canopies, tools, radios and cameras.
Finally, sailboat owners may be interested in a spars and sails racing extension, which covers damage to the sails, spars and rigging during a pre-arranged racing competition.
ERIE’s boat insurance policy protects boaters anywhere in the continental United States, Washington D.C. and Canada as well as the waters that stretch along the coastline. To learn more about this policy and specific coverage available, call Boizelle Insurance. We can walk you through the coverage you need.
It’s time to have some fun now that the logistics are out of the way. Enjoy the warm weather and head out onto the water!
Originally Posted By: Erie Insurance
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