Archive for February, 2015

5 Things to Know about Disability Insurance

Posted on: February 27th, 2015 by Commercial Insurance No Comments

While everyone is probably up to speed with Life insurance by all the attention and advertising dollars spent to keep Life insurance front and center. Your biggest exposure to financial unrest for you and your family could be found if you are disabled due to injury or illness. Disability insurance will provide you an income to pay bills when you can not perform your job.

When considering Disability insurance and the benefits it can provide, it’s important to understand these Five things;

  1. If you can not work due to injury or illness, disability insurance can help pay your monthly bills like; mortgage/rent, utilities, car payment, insurance, food, education, credit card bills, health-care.
  2. Social Security benefits are not available to you if you are out of work less than one year. If you are the sole provider or bread winner in a family you will drain all savings to keep your family a float.
  3. Most long-term disabilities are due to illness not injury. Take extra care exercising, driving or playing sports may not matter. Illnesses you see other people get every day will account for over 90% of disability claims.
  4. Easier and less expensive to get disability insurance while your young and healthy. Today 25% of people under the age of thirty will suffer some form of disability before the age of 65.
  5. Your disability benefits through work are taxable income. You will receive far less than you think will with disability insurance benefits provided by your employer. Disability insurance you purchase on your own is non-taxable. Combine the two incomes to get you the monthly benefit you will need.

While most of us are in agreement the importance and value Disability insurance can provide. Facts are most people will not take action.

For more information on Disability insurance and how it will help you and your family, Call us, We have the Answers.

Your 401k Plan & Fiduciary Liability

Posted on: February 20th, 2015 by Commercial Insurance No Comments

Since the start of the New Year, we have received several calls from clients requesting a copy of their ERISA Bond. The ERISA Bond is the coverage required by the Internal Revenue Service (IRS) when you have a company sponsored retirement plan (i.e.; 401k). The amount of the bond is 10% of the assets in the plan. Since the assets of most plans change every year, it’s important that you update your bond limit at renewal time to comply with the law.

Another coverage that you should consider if you have a 401k Plan is Fiduciary Liability. Fiduciary Liability protects the trustee of the retirement plan, usually the owner, from any suit by a current or former plan participant (employee). Although you may have a third party administrator that handles the majority of the paperwork, the trustee of the plan remains Personally Liable!

If you’re like many owners, you probably set up the 401k plan a few years ago, picked a third party administrator, filed the paperwork away and never gave a second thought to the plan. It’s important as the trustee to be able to show that you had a plan review at least every 3-5 years. Fee structures, fund choices and other expenses can change dramatically as the amount of money in your plan increases. Having a plan review can help you and your employees maximize their retirement savings. It would also be a great benefit to you, if you do get sued.

You have Questions on ERISA Bonds and Fiduciary Liability, Call Us! We have the answers!

Group Health Insurance a New Ballgame

Posted on: February 13th, 2015 by Commercial Insurance No Comments

Freezing Cold, Check; Lost School Days, Check; Snowstorms to end all storms, Double Check, What’s not to love about winter in New England? As much as some of us enjoy the winter fun, spring is only 35 days away.

Spring brings warmer weather and the Red Sox truck just left Yawkey Way yesterday, both things to look forward to.. For many companies, spring will also bring the renewal of their group health insurance. 2015 brings some changes to the small group market (50 employees and less). The census you complete each year for your renewal quote will now require the dates of birth for you, your spouse, and any children to be covered. The renewal rates for all companies will now be based on what they call Four Tier Rating.

Four Tier Rating means different rates for Family, Employee and Spouse, Employee and Children, and Single (only employee).

Over the course of the last few months, we have seen renewal rates go from a decrease of 5% to an increase of 30%. In order to get the best coverage at the best price, you should:

  • Make sure your census is accurate
  • Get a Market Comparison from all carriers
  • Review Plan Design to maximize savings

If you have 5 employees or more, we can provide you with a Market Comparison to make sure you’re getting the best value with your group health insurance. There are options, and we can help you navigate through the process. The time to act for April renewals is NOW.

You have Group Health Insurance Questions, We Have the Answers, Call Us Today!!