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Monthly Archives

February 2015

Feb 02
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Start Your Renewal Process Early This Year

By Construction Insurance Bulletin

Turbulence in the contracting business, probably at an all-time high.  Businesses are shrinking or expanding constantly.  As a risk manager, you must embrace reality and try to resolve the current state of affairs.

 

Start your renewal process today by comparing your policy estimated payrolls with the summary W-2 sheet produced by your accounting department (must be completed by February 1).

 

Review the 1099s and check these recipients against your files to assure certificate compliance and proper risk transfer techniques.

 

After reassessing your payroll exposures for the coming year, estimate your current premium.  Talk to your agent about optional markets at that premium level, insurance companies have different appetites for different size risks.  Find several appropriate insurers.

 

Many insurers now demand loss control inspections prior to commitment to offering any quote.  Get your reports in order.  Make sure loss control measures are in place and working.  Order loss runs from your current carrier to have on hand.

 

Most important: leave enough lead time for the inspections to occur.  At least ninety days, so new insurers can inspect your operations.

 

The insurance markets retool every few years and create new identities, new brands within the industry.  Currently, insurance companies are deciding what size accounts they will seek, single lines like workers’ compensation or general liability, or supporting lines requirements: like workers’ compensation, general liability or automobile liability.  Ask your agent what the current view is among their companies.

 

The key to having choices is starting early now.  Don’t leave yourself at the mercy of the renewal carrier.

 

While your reassessing your policies, rethink your program as well.  Your program consists of the risk management decisions that have subtle but important impacts on your insurance costs.  For example: what is your best expiration date?  In the construction industry, January first or April first are popular choices in a well-managed risk management program.

 

One secret within the insurance industry: rates tend to change on calendar quarters.  If rates are increasing on April first, you can always renew on March thirty-first if you have enough lead time.  But you need to know in advance and have friendly underwriters, and proactive agents.

 

Calendar quarters allow for government filings to be used as a basis for the insurance auditors, and audits go smoother.  Corporate financial years can be good, especially if they fall on calendar quarters.  Decide your best expiration date (and you want all liability lines to share that date)and begin 120 days in advance gathering quote information and loss data.  Shop early.

Feb 02
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2015 Begins with a Self-audit, then Spring Cleaning

By Construction Insurance Bulletin

Even professional football players need coaching about fundamentals. Observe the three point stances in the second quarter of any game.

 

Payroll determines base premiums for contractor’s key coverage: workers’ compensation and completed operations liability. Your company produces annual payroll recapitulations with summary reports for W-2s and 1099s at every year end.

 

Review estimated payroll given to your carriers for these policies. Does the comparison summary suggest a large additional premium or perhaps a return to your firm? If you discover a significant drop in payroll, which implies a significant decrease in premium, ask your agent to review the insurance carrier selection in light of this reality.

 

Some carriers prefer larger workers’ compensation or liability accounts and may choose to non-renew based on premium size. Check on this compatibility as part of your spring cleaning to-do list.

 

Calendar quarter expiration dates make sense since tax records get filed at these times. Self-audit becomes easier as do insurance company audits. If you do not now enjoy a calendar quarter expiration date, put that on your spring cleaning to-do list.

 

Review the 1099s. Do you have insurance certificates on file for these subcontractors? The insurance companies will charge premium for undocumented subcontractors. Check each one as an item on your list.

 

Check your contract status with each 1099 recipient to assure proper loss transfer language is in place.

 

Review OSHA logs, lunch-pail safety meeting, and similar in-house safety and injury reporting documentation for completeness and accuracy. Request loss runs from your insurance carrier. Does your information agree with their claims estimates?

 

Your experience rating is based on their estimates or “loss reserves”. Ask about any discrepancy in expectations.

 

Check your safety equipment such as fire extinguishers and first aid kits to assure they are up-to-date and functional. Do not delegate this task. Check them. This is life or death, not profit or loss.

 

So to recap your spring cleaning list:

• Review your W-2 and 1099 summaries and double check the associated documents.

• Review safety and loss documentation.

• Check life safety equipment personally.

 

Spring cleaning provides a pathway to a safe and efficient new year.

Feb 02
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Four Facts You Need to Know About 2015 IRA Contribution Limits

By Employment Resources

Do you want to retire comfortably? Your IRA can play a big part in your ability to enjoy this season of life. Because this financial resource is one you’re solely responsible to fund, understand four IRA contribution facts for 2015 as you prepare for the future.

 

1. Contribute the Maximum Amount

Contribution limits from 2014 remain the same in 2015, so plan to save the maximum amount. If you’re under 49 years old, contribute up to $5,500. If you’re over 50, contribute $6,500.

 

2. Consider Your Birthday

 

Will you turn 70.5 years old this year? If so, you won’t be able to contribute to your traditional IRA. Roth IRAs don’t cap contributions based on your age. Think about your birthday and the type of IRA you own as you maximize your retirement savings.

 

3. Track Your Income

 

No matter how old you are or which type of IRA you have, your modified adjusted gross income (AGI) can decrease the amount of money  you can contribute.

Contribute the maximum amount if you file a joint tax return and your modified AGI is less than $183,000 or if you’re single and earn less than $116,000.

 

Contribute a reduced amount if you file a joint tax return and your modified AGI falls between $183,000 and $193,000, if you’re married but file separately and your modified AGI is under $10,000 or if you’re single with a modified AGI between $116,000 and $131,000.

 

You can’t contribute anything to your IRA if you file jointly and your modified AGI is greater than $193,000, if you’re married filing separately and have a modified AGI greater than $10,000 or if you’re single and your modified income exceeds $131,000.
With this information, you’re better able to plan a retirement savings strategy that’s right for you.

 

4. Think About Your Taxes

Your IRA contributions this year can impact your tax obligations for 2016 and beyond. Add money to your traditional IRA between now and April 15, 2016, and deduct the full amount on your 2015 tax return. You’ll pay taxes on the withdrawals you receive from a traditional IRA when you retire, though. A Roth IRA features no tax deductions now, but you won’t owe taxes on distributions during your retirement years.

 

Understanding these four  2015 IRA contribution facts assists you in preparing for your future. In addition to investing in your employer-sponsored 401(k), consider opening an IRA as you save for a comfortable retirement.

Feb 02
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Top 2015 Health Insurance Trends That Affect Your Workplace Coverage

By Employment Resources

Is employer-provided health insurance a perk of your job? Discover top trends for 2015 that can affect your workplace coverage.

 

1. Employee-sponsored health benefits cost more

 

The average cost of health insurance per worker is rising. According to Aon Hewitt, it averaged 10,266 in 2013, rose to $10,717 in 2014 and is projected to cost $11,304 in 2015, an increase of 5.5 percent. If your employer decided to pass the rising cost onto you, expect to pay an average of $5,000 in health care contributions and out-of-pocket expenses this year.

 

2. Employer mandated penalties kick in

 

Companies with more than 100 full-time employees must offer qualified, affordable coverage to their workers. The penalty is at least $2,000 per employee. This penalty will prompt most companies to add health insurance to their employee benefits package, so look out for enrollment information.

 

3. Personal penalties are due for the uninsured

 

If you can’t afford your employer-sponsored health insurance and don’t buy your own policy, expect to pay a penalty. The Affordable Care Act stipulates that individual adults without health insurance in 2014 will pay the greater of $95 or one percent of their family’s income over $10,000. While the penalty is capped at $2,448, it increases in 2015. Sign up for your employer-sponsored plan or apply at the Healthcare Marketplace today to avoid this penalty.

 

4. Consumer-Driven Health Plans are on the rise

 

Health insurance expenses are rising and so are consumer-driven healthcare plans. Almost half of all large employers offer them now, reports the Mercer consulting firm. Typically, these plans feature high deductibles, but they also offer health reimbursement accounts (HRAs) or health savings accounts (HS As) that cover medical expenses and provides tax benefits. Compare all your options as you choose health insurance.

 

5. Wellness programs are emphasized

 

Healthy employees are cheaper to insure, so many insurance companies and up to a quarter of large employers are placing a greater emphasis on wellness programs. That means you could see decreased health insurance premiums or a bonus in your paycheck if you participate in a biometric screening, enroll in a weight-loss program, join the gym or quit smoking.

 

Now that you know the top health insurance trends for 2015, review your existing coverage or talk to your human resources manager or private insurance agent. Find coverage that fits your needs and protects your entire family.

Feb 02
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Tips to Consider if You’re Facing a Working Retirement

By Employment Resources

Even though you’ve reached retirement age, you might need to postpone a life of leisure due to financial concerns. A working retirement allows you to work at least a few hours every week and build your nest egg before you make the big transition to full retirement. First, though, consider several tips.

 

Boost Retirement Savings

 

According to a 2013 Employee Benefits Research Institute study, one-third of pre-retirees on the lower end of the income scale only have enough money to fund one year of retirement. Additionally, many of the pre-retirees in the same category don’t contribute enough funds to their 401k or other retirement accounts. Talk to your financial advisor about your retirement portfolio. If you don’t have enough money saved, take a job that offers matching 401(k) funds or set up automatic payday transfers that boost your retirement savings.

 

Maximize Social Security Benefits

 

You can almost double your Social Security benefits by choosing a late retirement instead of leaving your job at age 62. Talk to your human resources manager and crunch numbers as you maximize your Social Security benefits.

 

Choose the Career You Want

 

Maybe you love your current job and want to keep it. That’s okay, especially if you receive generous benefits like health insurance and matching retirement fund contributions.

 

However, don’t be afraid to switch careers or try something new. Learn a new trade, work as a temp in a variety of fields or start your own business. A career counselor can provide resources, revamp your resume and help you find a job that’s a good fit for your skills, talents and interests.

 

Get Medical Clearance

 

Before you sign up for a working retirement, visit your doctor for medical clearance. For example, if you suffer from chronic back pain or a heart condition, your physician may give you the okay to work in data entry but not package delivery. Ultimately, you need to prioritize your health and safety.

 

Stay Active

 

Working during your retirement provides you with an outlet for your boundless energy and active lifestyle. It also keeps your mind sharp, a benefit most seniors appreciate.

 

Deciding to take a working retirement with full-time or part-time hours might be a wise decision for you. Consider these facts, talk to your human resource manager and financial planner and crunch the numbers as you make this important decision.

Feb 02
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How the New ACA Full-Time Employee Definition Affects You

By Employment Resources

With the push to boost their bottom line, many companies cut employee hours. This move reduces wages and benefits while saving the company money. If your hours have been cut, the move from full-time to part-time could seriously impact your ability to make ends meet. You’ll be glad to hear about a new full-time employee definition as outlined in the Patient Protection and Affordable Care Act (ACA).

 

The New Full-Time Employee Definition

 

Passed in 2010 and going into effect in 2015, the ACA states that employees who work 30 hours a week are considered full-time. Previously,  employees had to work 40 hours or more per week to be classified as full-time.

 

In addition to the new definition, the law includes health benefit requirements. Employers with more than 50 employees must provide health insurance benefits. Companies with 50 to 99 employees will face a fine starting in 2016 if they do not provide quality and affordable health insurance to full-time workers. Companies with over 100 full-time employees will be fined starting in 2015.

 

Companies Respond by Cutting Hours

 

In light of the new legislature, many companies announced their decision to reduce employee hours. The Employee Benefit Research Institute (EBRI) conducted a survey to determine the reason for this downsizing shift. The study found that employers were actually reducing hours before the law. They largely reduced hours based on economic reasons rather than because of the new full-time worker definition.

 

The New Definition Gives you an Advantage

 

Despite a shift toward reduced employee hours, the National Business Group on Health praises the new legislation and points out its benefits to employees like you. As a non-profit association, this group includes more than 400 large U.S. employers on its membership roll. According to President and CEO Brian Marcotte, the updated definition will ultimately boost employment and improve the economy. It will also benefit employers of all sizes, including small businesses in service, hospitality and retail industries.

 

Flexible hours are another advantage of the change reports Marcotte. Now, employers and employees can offer a flexible work schedule that benefits each party and boosts morale without sacrificing quality.

 

Whether your hours were recently cut or will be soon, discuss this new full-time employee definition with your human resource manager. You have the right to health benefits despite your decreased work hours.

Feb 02
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Why Healthy Singles Need Health Insurance

By Life and Health

As a single and healthy adult, you may figure that health insurance isn’t a necessity. After all, you don’t have any pressing or chronic medical needs, and insurance is just another expense that will stretch your already thin budget. What you don’t realize is that you actually have several really good reasons to purchase health insurance today.

 

1. Avoid a Penalty

 

With the Affordable Care Act in effect, anyone who doesn’t purchase health insurance in 2015 will owe a penalty of $325 or two percent of your income. Avoid the penalty by enrolling in your parents’ insurance if you’re under 26. Otherwise, enroll in your employer-sponsored healthcare plan or apply for an affordable policy through the Healthcare Marketplace or a private insurer and avoid the penalty.

 

2. Cover Preventative Care

 

Maybe you only think about doctors when you’re sick, but they’re also important for preventative care. During regular checkups, they can catch the beginnings of heart disease, diabetes or other medical conditions, so put your health insurance to work as you prioritize preventative care.

 

3. Build a Relationship With a Healthcare Team

 

What happens if you get pregnant, develop arthritis or suffer from severe headaches? You’ll want a trusted medical team that knows you and your physical health history by your side. Use health insurance to make regular visits to a physician and build a relationship that will benefit you down the road.

 

4. Enjoy an Active Lifestyle

 

Do you avoid skiing, traveling or another fun activity because you’re afraid you might get hurt and won’t be able to afford the medical treatment? Purchase health insurance. While it doesn’t give you a license to be reckless, it does help you enjoy life without worrying that an injury will wipe out your savings and land you in the poor house.

 

5. Maintain a Healthy Reproductive System

 

Even though you don’t have a family now, you may want one in the future. Go to the doctor for regular checkups and reproductive health advice. Address reproductive problems now and maintain your reproductive health as you look forward to the future.

 

Health insurance can be expensive and it might seem like a waste of money or a budgetary strain, but it’s a wise investment. Talk to an insurance agent today about which policy is right for your needs and budget. Then use health insurance to take care of yourself today and prepare for a healthy tomorrow.

Feb 02
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When Do You Really Need to Look at Getting Life Insurance?

By Unregistered

Life insurance isn’t just for parents of young children. It’s a valuable resource for almost anyone. Before you dismiss this valuable resource as irrelevant, consider several factors that determine when you need to consider buying a life insurance policy.

 

You Need a Funeral

 

The National Funeral Directors Association calculates that the average adult funeral costs $7,095. By purchasing a life insurance policy, you cover that expense and give your survivors one less thing to worry about paying.

 

You Have Debt

 

After you die, certain debts, including your student loans, mortgage, credit card balances and unpaid medical bills, have to be repaid with assets from your estate. Money from your life insurance policy can cover these obligations and reduce the financial burden your family faces.

 

Your Financial Resources are Limited

 

How much money do you have saved in bank, retirement or investment accounts? If those resources aren’t enough to pay for your survivors’ daily living expenses, purchase adequate life insurance and provide for your loved ones’ needs.

 

You’re Getting or Already are Married

 

If you could continue providing financially for your spouse even after your death, would you? Then buy life insurance. It offers extra funds that cover living expenses, and it shows your spouse how much you really care.

 

You’re Someone’s Primary Caregiver

 

Whether you care for young children or aging parents, purchase life insurance. The funds provide the care your loved ones need.

 

Your Loved Ones Have Long Term Needs

 

Of course you can’t see into the future, but you can plan for the long term needs your loved ones will face, including college, medical treatment or housing. With a life insurance policy in place, you provide for your family long after you’re gone.

 

While life insurance is beneficial, it’s not a requirement. If your children are grown, your mortgage and debts are paid, and your spouse had adequate financial resources for a comfortable retirement, you may not need a life insurance policy. However, strongly consider purchasing a policy if your survivors need this financial resource.

Talk to your insurance agent today about how much life insurance you need and available policy options that give you peace of mind and protect your loved ones now and in the future.

Feb 02
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When to Schedule Your Child’s First Dental Appointment

By Life and Health

February is National Children’s Dental Health Month, and you can celebrate by making sure your children see the dentist regularly. Even your babies need a dental exam. Learn more about when your baby should see the dentist for the first time and what to expect at this visit.

 

Schedule Your Baby’s First Dental Visit

 

According to the American Association of Pediatric Dentistry (AAPD), your child should see the dentist by the time he or she turns six months or within six month of the first baby tooth eruption. Rather than a full dental exam, the initial visit allows the dentist to meet you and your child, gather medical and dental history and teach you about good oral hygiene and proper preventative care. The dentist will simply feel your child’s gums and visually inspect any erupted teeth to make sure they’re healthy. It’s a non-invasive appointment that sets the stage for good oral health in the future.

 

Choose a Dentist

 

You could take your baby to see your dentist. However, consider scheduling your child’s first dental appointment with a pediatric dentist who specializes in treating infants and children. The entire dental team is prepared to examine squirming, fearful and anxious children, and the waiting room is filled with age appropriate books, toys and games or an aquarium.

 

Make the Visit Fun

 

No matter how you feel about dentists, your child needs to know that visits to this medical professional are fun and safe. Keep your anxiety in check by treating the first dental visits like a fun play date. Smile at your child, speak cheerfully and remain calm so that your baby feels calm and relaxed.

 

Maintain Good Oral Hygiene at Home

 

Your baby’s oral health improves between dental visits when you practice good oral hygiene at home. Rub your baby’s gums with a clean, wet washcloth after meals to reduce bacteria growth. Once the first baby tooth emerges, brush it at least twice daily with non-fluoridated toothpaste as you promote healthy oral habits and a healthy mouth.

 

When you take your baby to see the dentist, you lay the foundation for a lifetime of good oral hygiene. Take advantage of your dental insurance and schedule your baby’s first exam today.

Feb 02
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Does Your Newborn Need Life Insurance?

By Life and Health

You’ve recently welcomed a baby into your family, and now you’re ready to plan for your child’s future. You already know that life insurance is a wise financial decision for you, but does your newborn need life insurance?

 

Lock in Affordable Rates

 

Compare rates for a newborn life insurance policy and one designed for senior adults, and you’ll see that the newborn policy costs less. Life insurance companies know that young customers typically live longer, which decreases their risk of payout. By purchasing a policy now, you snag affordable rates while your child is young and healthy.

 

Assure Your Child’s Insurability

 

Insuring your infant does more than secure the best life insurance policy rates. It also ensures your child’s future insurability. In the future, illnesses like heart disease, diabetes and cancer affect your child’s ability to buy affordable life insurance. That’s why families choose to insure their healthy infants and assure their future insurability.

 

Provide for End of Life Expenses

 

It seems a little silly to think about paying for your newborn’s funeral.  However, the Centers for Disease Control and Prevention found that 4,246 children under the age of four died in 2011 from birth defects, genetic disorders and accidents. Life insurance covers burial and funeral costs, which gives you peace of mind and financial protection.

 

Give Your Child a Financial Head Start

 

Life insurance is typically available as term or whole life coverage. Either option provides essential coverage, but term life insurance usually costs less.

 

*Term insurance covers the policy holder for a set time frame. For example, buy your newborn a 15-year term life insurance policy, and your child is insured until he or she turns 15. In cases, this type of policy can be renewed.

 

*Whole life insurance provides a lifetime of coverage and builds cash value. As an alternative to an IRA or 529 Plan, whole life insurance gives you a way to save for your child’s future while providing life insurance for him or her.

 

Life insurance is designed to replace the primary wage earner’s income as it provides for the survivors’ financial needs. Purchasing a policy for your newborn can be a good idea, though, especially after you purchase adequate life insurance for yourself. Then weigh the pros and cons of newborn life insurance and talk to your insurance agent as you make this decision.

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