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December 2010

Dec 01
Love0

CREATING A LIVING WILL GIVES YOU THE FINAL SAY

By Life and Health

If you could see the future, you’d probably be curious about your death. Sadly, there isn’t a magic crystal ball to tell you how, when, where, and all the circumstances surrounding your death. What you do have at your disposal is a living will. You might not be able to see your future, but you can play a vital role in predicting, managing, and determining what happens.

What Is a Living Will?

An advanced directive includes two documents: The living will and a Health Care Power of Attorney. The living will document is composed while the adult is competent and can only be used when the person is no longer able to make their own medical decisions. It outlines specific instructions on medical treatment in the event that the person becomes incapacitated or unable to communicate their own wishes. The living will specifically dictates what medical treatment is desired or not desired and under what circumstances. It is essentially a set of written directives for healthcare professionals to use in determining medical care if you can’t personally tell them.

A living will is not the same as the Health Care Power of Attorney, which serves to appoint a person to speak for you. Also, be careful not to confuse a living will with a last will and testament; they are not the same thing. A last will and testament outlines instructions related to your personal estate, not your health.

Advantages of a Living Will

For those that wish to have the final say in what happens to them when they become ill, injured, or otherwise incapacitated, a living will is an invaluable tool. You might have strict religious convictions related to medical treatment options, such as a blood transfusion or organ transplant, that you want to make sure are adhered with. A living will gives you the control to make your wishes known and comfort in knowing they will be followed.

Family members might know your wishes, but medical emergencies are often a chaotic and stressful time where your medical wishes might not be on the forefront of thought. A living will also eliminates the pressure and guilt from your family members making medical decisions for you, as you have already expressed the answers to difficult medical decisions with your living will. A living will should be immediately considered for those diagnosed with a terminal illness, such as cancer, or a cognitive altering disease, such as dementia or Alzheimer’s disease. You will have the ability to dictate all types of acceptable and non-acceptable medical interventions while you are still cognitive enough to make your own decisions.

For those with an already known illness, the preparation of the living will is also a gateway to speak with your doctor and family about the illness, future aspects of the illness, and what is the best course of treatment for you. Do remember that a living will is a binding legal document and should not be made in haste. If your decision involves termination or refusal of medical care, the living will must be made under the consultation of your doctor. The living will is authorized by statues written into every single state law. Most states have created a basic language and format for the living will.

Dec 01
Love0

LIFE INSURANCE IS IMPORTANT FOR YOUNG FAMILIES, TOO

By Life and Health

A 2004 study showed that up to 75% of those that died between 35-years-old to 55-years-old left their significant other without Life insurance coverage that was adequate.* This statistic might be attributed to the fact that many don’t like to think about an early death, much less the surviving family members being forced out of the home and liquidating all of the personal assets to afford the everyday cost of living.

The possibility of an early death, and the financial hardship that an early death might impose on other family members, is something that should never be ignored. Life insurance is a vital tool to prevent such potential circumstances from becoming a reality. The well-being and monetary needs of the surviving family members should be considered when choosing a type of Life insurance.

How to Choose the Right Life Insurance Coverage

The right decision is most always synonymous with an informed decision. Before you choose any specific policy or option, make sure that you understand what each type of Life insurance policy will cover and cost. Then, and only then, can you make a well-informed decision about what coverage will best suit your specific need and circumstance.

Term and Permanent Life insurance are two common types of Life insurance that you might want to consider. Term Life insurance is essentially a temporary form of Life insurance. It will provide coverage and pay benefits only during a designated or preset time period. On the other hand, Permanent Life insurance will provide coverage during the entire lifetime of the individual. It can also have the benefit of accruing a cash value over time. However, for the coverage to remain valid, premiums must be paid on time. There are benefits and drawbacks to each type of Life insurance; it really depends on the specific needs of the family.

You will also want to consider how much Life insurance will cover the needs of remaining family members. Number of family members, debt, future debt, and ability to afford the various Life insurance premiums will all play a role in how much Life insurance coverage is best.

It can be beneficial to make an outline of what your present monetary obligations and needs are and a prediction of what those needs and obligations will be in 5, 10, 15, 20+ years down the road. By combining this information with your total household income, you can determine the best amount of Life insurance coverage. At the very least, you should make a list of recurring monetary obligations: Mortgage, student loan, vehicle loan, credit card debt, etc. However, including future obligations, such as a child’s college tuition, will give you the most accurate estimate on how much Life insurance coverage you should purchase.

Be Prepared

Financial solvency for young families can be ensured with a Life insurance plan. However, even the best laid plan can become dated as life changes. So, part of being prepared also includes periodically reevaluating your Life insurance coverage.

*National Association of Insurance and Financial Advisors (NAIFA) 2004

Dec 01
Love0

FIVE LITTLE KNOWN TIPS THAT CAN SAVE MONEY ON MEDICAL COSTS

By Life and Health

With the economy crunching down and trimming the incomes of some individuals, tips that can save money on medical costs are going to come in handy. After all, the increase in the prices that many consumers are paying on everything from groceries to electronics to college tuition to Medical insurance to newspapers to even more is making it difficult to make ends meet financially. A few simple tips that can save even just a few dollars could be quite beneficial to those individuals who are struggling to make ends meet. Not only has the cost of Medical insurance premiums gone up, but also the cost of copays seems to have skyrocketed for some individuals. Therefore, following a few simple tips could help to save many people more than just a few dollars.

  1. Sign up for a Free Screening for Skin Cancer. Every year, many hospitals offer free skin cancer screenings performed by physicians who offer their time and services at no cost to the individual who signs up. This practice saves each of these potential patients the cost of one copay. Since physicians who treat skin cancer are classified as specialists, the copay is typically higher than that charged for being seen by a general practitioner. For some individuals who are lucky enough to have a low copay, this strategy might only save them $10. However, for other individuals who have much higher copays, the savings could be as high as $40. This savings is increased if more than one family member opts to participate in a free skin cancer screening.
  2. Request Necessary Procedures Only. In order to cut back on medical costs, it is okay for a patient to request that only necessary procedures are scheduled. Some physicians include extra procedures that are not necessary simply because they are recommended procedures for a particular age group, weight class, or some other parameter. In some cases, the procedure might be added on simply because it is easy to perform together with the other tests. However, this is not always the case and many medical tests are absolutely necessary and should be taken. As long as the patient is in good health and not experiencing any signs of illness, requesting only those procedures that are absolutely necessary could save the individual quite a few dollars.
  3. Ask for Samples. Many times, physicians have access to free samples that are available for patients to use. If money is tight and you could use a bit of financial assistance when it comes to saving money and getting by, ask your doctor if they have any samples available for you if and when they prescribe you medication. Patients might be able to receive an entire month’s supply of a new medication, saving them one full copay.
  4. Request Generic. First, ask your physician if a generic brand would be permissible for you to use instead of a name brand medication. Typically, generic brands are just as good as their name brand counterparts. Plus, they cost quite a bit less money.
  5. Check into Mail Order Prescriptions. In many cases, an individual’s prescription plan includes the opportunity to order the prescription through a mail order service. One of the benefits of mail ordering a prescription is the opportunity to order a three-month supply rather than a single month’s worth of the prescription. The benefit of ordering through mail order services is a financial one since the cost is usually a reduced price when ordering a three-month supply. Some prescription plans charge only a one-month copay, while others might charge a two-month copay.
Dec 01
Love0

THE DATA IS IN – DISTRACTED DRIVING IS DANGEROUS!

By Personal Perspective

In our high-tech world, there are more and more instances of driver distractions that contribute to car accidents, some of them fatal. According to the National Highway Traffic Safety Administration, in 2008, there were an estimated 6,000 deaths and 500,000 injuries attributable to distracted driving. If anything, the actual number is likely higher because distractions can be hard to quantify and the true number of accidents caused by driver distractions is difficult to define.

Our changing driving habits and increased dependence on technology have steadily raised the number of potentially dangerous distractions. Consider the attention-diverters in your own car: Radio and climate controls, cell phones and navigation systems. Matters are complicated further when there is more than one distraction, such as eating while trying to discipline a child in the backseat.

Furthermore, the National Safety Council released a white paper in early 2010, discussing the effects of cell phone usage while driving, and the news is not good. The white paper pulled information from at least 30 different scientific studies, and the results showed that cell phones have quickly become one of the leading driver distractions, even when drivers opted for “hands-free” devices. The NSC reveals that cell-phone usage causes the driver to multi-task and weakens the brain’s ability to capture driving cues. The overwhelming result is impaired driving performance.

Because of the grim data, many states have placed restrictions on drivers’ use of cell phones. The number of wireless phone users in the U.S. has grown from five million in 1990 to more than 200 million today, and surveys show that 85% of these people use cell phones when behind the wheel. In fact, calls from moving vehicles account for half of all cellular air time use.

So what can you do to avoid falling into this trap? Below are some important anti-distraction tips:

  • Keep your eyes on the road. Consider the possibility of turning your cell phone off while behind the wheel.
  • NEVER text while driving.
  • Keep your hands on the wheel by programming your favorite radio stations, and arranging tapes and CDs in an easily accessible spot. Don’t attempt to retrieve objects that have fallen on the floor while driving.
  • Teach your children the importance of good behavior in the car.
  • Avoid eating and drinking while driving. If you must, choose easy-to-handle foods and keep beverages in a nearby cup-holder.
  • Designate the front-seat passenger to serve as navigator rather than fumbling with maps and navigation systems yourself.
  • Take a break if you find yourself lost in thought.
  • Avoid stressful or confrontational conversation while driving.
Dec 01
Love0

IDENTITY THIEVES: THEY PLAY, YOU PAY

By Personal Perspective

It’s hard to tell exactly how they do it. Maybe you threw away some papers with your account number on them, somebody watched you put in your PIN number, or maybe you fell victim to an email phishing scam. Identity thieves don’t care where they get your information, they are just out take your money and ruin your credit in the process. Because there are so many different ways for identity theft to occur, it is important to know how to protect yourself and your assets.

Identity thieves are criminals who prey on other people’s personal information, for instance their social security number, credit card information, bank account information, and online account log-in information. Thieves even want to know your pet’s name or mother’s maiden name to help them steal passwords. Using this critical information, thieves are able to make unauthorized transactions and transfer funds behind your back. Before you ever find out, an identity thief could be enjoying a Caribbean vacation at your expense. Although these damages can be repaired, it will cost you plenty of headaches and potentially thousands of dollars.

The threat of identity theft is ever present, but there are some things you can do to keep your credit protected. The first thing you should do is prevent yourself from revealing personal information over the phone and on the Internet. If you do not understand why a business would need your social security number or similar information, then do not give it out. Junk mail and credit card offers are also potential threats and should always go through a paper shredder before being thrown out.

Bank receipts and discarded deposit slips are a goldmine for thieves and should never get tossed in a public trash bin. When ordering new checks, request to have your first initial printed in the corner instead of your full name, to make it harder for forgeries to occur. Checks should never be printed with your social security number on them.

In your free time, take a trip to the library or use your office copier to make paper copies of everything in your wallet. Keep these duplicates in a strongbox or other safe spot at home so you can reference your driver’s license and credit card numbers if you ever lose your wallet or have it stolen. Make sure to photocopy the backs of your credit cards too, which contain the customer service phone numbers to call to deactivate the cards. Having these numbers handy will get your cards suspended quickly and cut down the amount of time the thief can access your accounts.

If you discover or suspect that your identity has been compromised, call the local authorities after you have deactivated your cards. Filing a police report legitimizes your claim and opens an investigation to find and stop the thief. Also, make a report with the fraud department at the Federal Trade Commission and the Social Security Administration. To stop further attacks to your credit, alert the three credit reporting bureaus to block the use of your social security number and name on any new credit applications.

Insurance companies offer Identity Theft policies to individuals who want added protection. These policies cover the costs of unauthorized purchases and restoring your credit. Sometimes identity theft protection is included with Homeowners insurance or it can be added as an endorsement to a Renters or Homeowners policy.

Nearly 100,000 people each year have their identity stolen, according to Federal Trade Commission statistics. Just one bank slip or piece of mail can lead to having your credit destroyed by an identity crook. By making only a few changes to your lifestyle, you can keep your identity from being targeted by crafty thieves.

Dec 01
Love0

DOES MY INSURANCE COVER MY GIFT CARDS?

By Personal Perspective

What do you buy for that special someone when you can’t think of anything else? With increasing frequency these days, the answer is a gift card. The National Retail Federation has reported that Americans spend more than $26 billion on gift cards during the holiday shopping season, and the average consumer spends more than $120. The reasons are simple. Gift cards are easy to purchase, never come in the wrong size or color, and the recipient is guaranteed to get an item she wants with it. Like anything else of value, however, they come with risks. Some have fees attached to them, and some expire if the owner does not use them within a certain period of time. They are also vulnerable to theft, disappearance and destruction. If your gift cards are stolen during a burglary or burn up during a house fire, will a Homeowners insurance policy reimburse you for them?

The standard Homeowners policy provides partial coverage for gift cards. It limits coverage for money, bank notes, coins, “stored value cards,” smart cards and similar cash-like items to $200 for all property in that category. Also, the policy covers personal property, including cash and similar items, only for a list of 16 causes of loss. The list includes such causes as fire or lighting, windstorm or hail, explosion, smoke, vehicles, theft, vandalism, weight of ice, snow or sleet, and others. The policy provides no coverage if a cause that is not on the list is responsible for the loss.

A few examples will illustrate how this works.

Joe receives a $50 gift card for an electronics store for his birthday and leaves it in his living room with his other gifts while he goes out to celebrate. Someone breaks into his home and makes off with all the gifts. His policy will provide full coverage for the clothes, DVDs and workout gear he got and the full $50 for the gift card. This is because the value of everything in that category of cash-like items was less than $200.

Joe’s family can’t think of a thing to get him for Christmas, so he gets a sweater and a pile of gift cards to various electronics and sporting goods stores and coffee shops. He feigns enthusiasm for the cards and leaves everything under the tree when he goes out to visit friends that night. Unfortunately, he has forgotten to water the tree for two weeks; an exposed tree light wire ignites it. The resulting fire cooks his downstairs. The policy covers the damage to the home and contents, but it pays only the $200 maximum for the $300 worth of gift cards.

Next year, Joe’s gift cards survive Christmas Day and, because he enjoys being stuck in traffic jams, he goes to the mall the day after the holiday to use them. However, when he steps up to a cash register with a Blu-Ray player under his arm, he cannot find any of the cards. He searches his car, every pocket in his coat, pants and shirt, and every place he went to in the mall, but he never finds the missing cards. Unfortunately, because disappearance is not one of the causes of loss listed on the policy, his insurance will not pay anything for them.

Some insurance companies might offer to increase the amount of coverage and the covered causes of loss for these items, so check with our professional insurance agents to identify those companies and find out the cost. For a small amount of money, you may be able protect yourself against the loss of these common gifts.

Dec 01
Love0

LAPTOP LOCKDOWN: SAFEGUARD YOUR COMPANY’S LAPTOPS

By Business Protection Bulletin

According to the FBI, there were 221,009 laptops reported stolen from 2008 through 2009. As an increasing number of business people are traveling with laptops in tow each year, this already high number is likely to keep rising. Statistics show that the most popular targets for laptop thieves are office buildings, airports, hotel rooms and cars.

Although some laptop snatchers are simply looking to make a quick buck by selling your computer, others are much more malicious. These higher-level laptop thieves are more interested in the valuable information stored within your computer-from business plans and customer contact information to Social Security numbers and passwords. Once they get a hold of your laptop, these cyber criminals might be able to gain access to your company’s server. One FBI study found that 57% of computer crimes were linked to stolen laptops. Plus, research suggests that the theft of just one laptop can cost a company up to $90,000 or more!

Unfortunately, many laptop owners forget just how much their computer and personal information is worth — and how much they stand to lose if their computer is stolen. That’s precisely why experts say you should guard your laptop as closely as you would your wallet.

Here are a few steps you can take to protect your laptop from these spiteful computer crooks:

Travel incognito. Whether you’re traveling by plane, train or automobile, be sure to carry your laptop in a protective, inconspicuous case. With thousands of laptop case styles available, you should be able to find one that looks more like a backpack, handbag, or briefcase — which decreases your risk of being targeted by a laptop thief.

Use protective software. Take advantage of password protection programs, anti-virus software, encryption software and other robust programs that will protect the information stored on your laptop.

Keep unused laptops out-of-sight. If your company has extra, unassigned laptops, keep them locked safely away in fully enclosed, secure closets. Never leave them in a cubicle or unlocked cabinet.

Lock it up. Never leave your laptop out in your office, even if you’re just leaving for a few minutes. Either lock it into your docking station or lock it away in a secure desk drawer. Don’t ever leave your laptop in plain view next to an office, house or car window.

Guard it in the airport. When traveling through an airport, be sure to keep your laptop within reach and in sight all the time. Never check a laptop with your baggage, and be extremely careful when you’re passing through security checkpoints. Hold onto your laptop as you wait in the security line, and do not set it on the belt until you’re getting ready to pass through the X-ray machine.

Protect it in the car. If you have to leave your laptop in the car, lock it up in the trunk where it’s out of view. If you drive a truck or SUV with a window looking into the trunk, lock it in your glove box or conceal it under a seat. You should also keep your laptop in a weatherproof case. Avoid storing your laptop in the car in extremely hot or cold temperatures.

Keep track of it. Make sure your name or company’s name and ID is engraved on your laptop. Also, be sure to write down your laptop’s identification number and store it in a safe place. Ask the laptop manufacturer or your local police department if they offer an asset identification or registry program.

Dec 01
Love0

CALCULATING WORKERS COMPENSATION PREMIUMS IS NOT A SIMPLE TASK

By Business Protection Bulletin

Standards for Workers Compensation insurance policies are set by the National Council on Compensation Insurance (NCCI). The NCCI uses more than 700 codes for specific job descriptions to help determine insurance premiums. These codes are applied to information submitted about your business by your insurance agent. Regulations vary from state-to-state, so setting standards is anything but a simple process.

Understandably, the complex nature of the process causes many employers confusion and concern about their Workers Compensation policies. Therefore, understanding the basics of Workers Compensation plans and how your premiums are determined is important.

Your insurer will estimate your first year’s premium based on a projection of your company’s payroll and the type of business you operate. At the close of the first year, the insurance company will do an audit to determine a more accurate premium, based on a year of payroll information and your business classification.

It is important to make any necessary adjustments during the end-of-year audit, since it is often difficult for a new business to predict what its first-year payroll will be. Working closely with our insurance agent will ensure your premium accurately reflects your needs.

Due to the complexity of the process, there are a handful of private companies that work to ensure accurate premium calculations. Independent premium auditors specialize in finding overcharges in Workers Compensations premiums. Such overcharges can occur when payroll is reported to the insurance company incorrectly, showing too many workers in risky jobs, or when a business is misclassified as a higher risk workplace than it actually is.

Even though states mandate Workers Compensation, they don’t actually set the premiums. Instead, they approve the rates that prescribe a certain dollar amount in Workers Compensation premiums for every $100 of payroll. Some states permit discretionary credits, which allow insurance companies to discount premiums, offering tremendous assistance to insurers in a competitive Workers Compensation marketplace.

Although accurate payroll records are essential in determining premiums, payroll is not the only component of remuneration. The NCCI also considers employee commissions, bonuses, overtime, holiday, vacation, sick pay, incentive plans, profit-sharing plans, payments for tool reimbursements, the value of rental housing and lodging provided by an employer, and the value of store certificates or merchandise given to employees.

After the first year, your premium is based on the injury rate at your workplace; so it is likely you will see a change based on your company’s experience with Workers Compensation claims. It becomes obvious that good record keeping, paired with effective communication with your insurance representative, is the key to ensuring your Workers Compensation premiums are in line with your needs.

Help Yourself:

  • Discuss all aspects of your business thoroughly with one of our agents. The more honest you are, the more realistic your premium will be. If your payroll or business description changes mid-year, you can always change your Workers Compensation policy to reflect these changes.
  • Some states exclude officers, owners, partnership, and sole proprietors from required Workers Compensation coverage. If you wish to cover any of these individuals with your policy, you might have to request such coverage specifically and pay for it additionally.
Dec 01
Love0

PLAN FOR THE UNEXPECTED WITH CONTINGENT BUSINESS INTERRUPTION INSURANCE

By Business Protection Bulletin

Outsourcing resources out of the country is rapidly becoming an indispensable business practice for a number of industries trying to increase the speed of their production and reduce their overhead. However, if you have a supplier or several located thousands of miles from your business that shuts down and is incapable of delivering products or services on schedule, the results on your financial situation can be dramatic. To reduce the amount of uncertainty that is common with both domestic and overseas outsourcing, you should think about Contingent Business Interruption, or CBI insurance. This is also known as Dependent Properties insurance or Contingent Business Income, and this kind of coverage pays back your company for lost earnings that come from an interruption in your supply chain. You can either add this coverage to your standard Property policy, or purchase it as a stand-alone coverage.

CBI keeps your business protected from the interruption in functioning and additional expense losses that might come from damage due to an insured danger to property that it doesn’t operate, own, or control, but whose functioning is essential to its maintained operations. CBI does not offer protection against your business being interrupted from damage to operations and plants under your control.

CBI typically will cover any losses of revenue, losses of earnings, and damages that are liquidated. You can arrange policies to address third party strikes, pollution or contamination, political risks, denial of access, epidemics, disease, and terrorism. Depending on the circumstances, it might be possible to find coverage for other dangers.

Typically, there are four unique types of properties that are covered through CBI:

  1. Contributing properties are either single or multiple suppliers for resources and materials that the insured party relies on nearly completely to finish its products on schedule.
  2. A manufacturing property comes into existence when the insured party relies on either one or a few choice manufacturers for the majority of its merchandise.
  3. A recipient property can be defined as either one or a select few companies that buy the majority of the products of the insured party.
  4. A leader property is a company that is a close business neighbor of the insured party and which assists in driving customers to the insured party.

CBI policies typically advertise a defined “waiting period” that applies for losses in income suffered by businesses. The waiting period can vary from between eight hours to a full week or more. Since a large number of policy holders will suffer the greatest amount of earning loss and expense within the first several hours and days that follow a supply disaster, you should make as much effort as you can to have the waiting period either eliminated or substantially lowered with your policy. Alternatively, you can strive to obtain a “known dollar deductible” rather than a mandatory waiting period. On one hand, you will still have to deal with the loss of some potential earnings, but on the other hand, any amount of earnings you lose above the deductible will be covered fully by your policy. When you apply for a CBI policy, the underwriter of the insurance will ask for several reports and information about your business, much of which will be information related to the suppliers of your business. These requests may include contingency plans and loss prevention plans from your primary suppliers. The amount you spend on a CBI policy will depend on several factors, including the type of business you have, how much dependency you have on your suppliers, and how much loss control your suppliers practice. Providing full information to your underwriter will help you receive the most precise pricing. For a business to file a claim through its CBI policy, there only needs to be an insured loss that occurs at a particular location with the business of the insurer interrupted in the process.

Dec 01
Love0

FIVE WAYS TO AVOID OSHA PENALTIES

By Construction Insurance Bulletin

In a one-week period in September 2010, the U.S. Occupational Safety and Health Administration announced eight citations against employers; penalties totaled close to $1 million. The agency fined a picture frame manufacturer for not protecting workers’ hearing, allowing combustible dust to accumulate, and blocking exit routes. An excavating contractor is paying a six-figure fine for failing to protect workers against cave-ins. A painting contractor’s scaffolding was missing railings, bracing and access ladders. Because OSHA had cited the company for these violations before, it levied a fine exceeding $200,000.

Clearly, failing to comply with OSHA regulations can be costly for employers. However, by implementing a few new procedures and attitudes, a company can reduce the chances that its name will end up in an OSHA news release.

Improve record keeping. Think of good documentation as your first defense against an OSHA inquiry. Inspectors who find information gaps in the OSHA 300 log (the record of work-related injuries and illnesses) may initiate a full-scale safety audit of the business. If your business has deficiencies in its logs for the past three to five years, devote some time to correcting them. Personnel files and Workers Compensation loss records can provide much of the missing information.

Focus on ergonomics. OSHA has announced that it will pay special attention to musculoskeletal problems. Businesses that seek out ways to prevent repetitive motion disorders will avoid citations and penalties. They will also pay lower Workers Compensation insurance premiums in the long run. Analyze how workers are performing their tasks and look for ways to reduce the strain on their joints, necks and backs.

Fix the routine violations first. Some safety issues are simple and cost little or nothing to correct. For example:

  • Blocked exits
  • Lack of protective equipment, such as gloves and safety goggles
  • Poor housekeeping
  • Improper storage of materials such as flammable liquids

These problems can accumulate over time if management is not paying attention. Operations with large numbers of these violations have paid substantial penalties to OSHA, so monitoring and correcting them is essential.

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