employer paid life insurance - Spencer Insurance Agency, Inc

The words I hate to hear. . .

I didn’t know you sold life insurance. Those are words I hate to hear.

Okay, now you know! Spencer Insurance sells life, disability and long term care insurance too.  My specialty at the agency is in these coverages.  I started my insurance career with John Hancock in the late 80s before joining my Dad’s agency.

I have been selling life insurance for over 30 years.  How many life insurance agents can say that? Most of the people I meet do not even know if their life insurance agent is still in business.  They have not heard from the agent since the policy was purchased. As a father, grandfather and small business owner I understand the needs of parents and small business owners to protect their families and businesses in the event of a death or disability.

Another issue I run into often is that clients rely too much on group life and disability policies. These policies are very helpful and important, however you need us to review the group policies to make sure they provide the coverage you think they provide.  Check out my article “Is my employer paid Long Term Disability Plan enough? When is 60% only 30%.”

You can also check out our life insurance “Frequently Asked Questions.”

Contact us for a review so we can discuss:

  • Do you have the right amount of life and disability insurance? You may have too much or too little.
  • How does a business owner protect their small business from the death of an owner or key employee?
  • What is your small business worth? We have a program that will give you the answer!
  • How much will my spouse receive when my business is sold? (Probably less than 50% of its value if you do no planning.)
  • Can my children and spouse stay in our home if I die? Can the children still go to college?
  • How to use life insurance proceeds while living to pay for long term care expenses.

If you don’t have life insurance what are you waiting for?  Contact us now!  If you do have life insurance call us to review the policy and make sure it is still providing the coverage you need and that the coverage is not running out soon. (We see a lot of people who purchased a 20 year term years ago and don’t realize the premium guarantee is running out.

Whether you just need a $15,000 final expense policy or $1,000,000 in term we can help.

Rely on my 30 years of experience.  Contact us today so you can check it off your “to do” list.

            

Has your Open Enrollment period begun?

If you work for a larger employer you may receive some group life and long term disability benefits.  You probably ask yourself “Should I purchase the supplemental life insurance that is offered? Spencer Insurance Agency wants to help you make this important decision.  There are times it makes sense to purchase this coverage and times when you are better off getting it on your own.  Check out the pros and cons on our website.  I think you will find this very helpful.

Do you have group Long Term Disability Insurance?  I strongly suggest you elect this coverage even if you need to pay the premiums. If you are able to buy up to 70 % do it!  The chances that you will be disabled before age 65 is far greater than the chance that you will die prior to age 65. But be careful of the trap!  Many of these group long term disability plans have a monthly cap.  Check out my article “Is my employer paid Long Term Disability Plan enough? When is 60% only 30%? “

Don’t be caught short!  Contact us today to discuss your options with “Open Enrollment.” Remember your open enrollment only last a few weeks.

 

Spencer Insurance Agency was voted the “Best Insurance Agency” again for the third year in a row.

Are you prepared?

          LIfe Insurance and Disability Insurance. Get protected

We meet with many clients and prospective clients to discuss their life insurance needs. One common thread is the lack of any estate planning.  Most people equate estate planning with the wealthy.

Yes, the wealthy need estate planning but don’t be fooled, so do the rest of us.  What is Estate planning?  It can be very simply having an updated will, advanced medical directive and power of attorney.

Why do you need estate planning?

  • Your children are getting older and moving out on their own. You are downsizing and preparing for retirement. Your estate planning documents are probably outdated. You need to meet with an estate attorney and update your documents
  • You have young children and life insurance. You don’t have a will or the will was done before you had any children. You need to update the will so you can update the guardian of your children, decide who will be the trustee of the life insurance proceeds, and make plans for a special needs child among other things. Without an updated will the courts will need to get involved to protect the children.  You need an updated will to make sure your wishes are followed in the event of you premature death.
  • You are separated, divorced or remarried. You need to make sure your will is updated to match your current situation. When a couple divorces there are many issues with their children that need to be addressed.  Life insurance beneficiaries need to be discussed to protect your children.

We am not an attorney or do I give legal advice.  We do work with many estate attorneys so if you need a referral to one I can help you out.  But, reviewing life insurance policies we see many things that make me cringe like naming minor children beneficiaries, naming a brother or friend who will be your children’s guardian the beneficiary of your life insurance proceeds and trusting caregivers to manage the large insurance proceeds.  Caregivers may be great with helping to raise your children but they may not be the best managing money.  You need to have these discussions with an estate attorney and you need to meet with us to review your life insurance.

Why you need a life insurance review:

  • Your life insurance agent may not have met with you in a long time and may not even be in the business now.
  • Do you have the proper type and amount of life insurance for your needs now?
  • Are your beneficiaries listed now proper for your situation today? You may still have an outdated beneficiary.
  • Did you update all your life insurance policies including your employer paid life insurance and retirement plan beneficiaries?

 

Contact us today for a life insurance review even if we are not your current life insurance agent.

Open Enrollment – An important time of the year.

 

 

 

Once a year most companies that provide group benefits have a period called “Open Enrollment. “ This is a brief time when you can change your benefit options with limited medical underwriting.

For example if you previously elected not to have Group Long Term Disability Insurance you now have another chance to choose that benefit with limited medical questions.  You may also be able to purchase some additional supplemental life insurance with few medical questions.

Spencer Insurance wants to help you during this “Open Enrollment” period. We specialize in life, disability and long term care insurance.  Contact us when you get your “Open Enrollment Package.”

Many people tell us they are paying a small amount for their supplemental life insurance.  Your company may provide free life insurance up to one times your salary and the employee can purchase another three to six times that salary.  The premium may seem inexpensive however why should you consider getting that coverage outside your employment?  Here are three reasons you should consider:

  1. If you lose your job or decide to switch jobs you may lose that coverage. Many times the coverage is not transferable. This could be a problem if you now have health problems you did not have when you first decided on the supplemental life insurance with your employer. If you had gotten a life insurance policy on your own with a premium guarantee of 30 years then you could switch jobs knowing the lack of life insurance at the new employer is not a deal breaker.
  2. An employer can decide to eliminate the plan, change the plan or change carriers. In addition the rates are typically set in five year bands (30 to 34, 34 to 39, 40 to 45 etc.).  This means as you get older that premium will increase.  An alternative is to purchase a life insurance policy with a 30 year rate guarantee outside of your employer.
  3. The group rates may be the same for all employees. This means an unhealthy employee who smokes may get the same rate as you.  If you purchased a life insurance policy outside your employer then you may qualify for the best non-smoker rates.

In addition you need to be careful with your Group Long Term Disability Insurance.  The employer may say its group policy will pay you 60% of your income should you be disabled.  However your plan may only cover your salary and not any bonuses. Most plans have a cap so the plan may only pay 60% of your income up to a maximum income of $5,000 per month.  If you earn more than $60,000 per year you may not be getting 60%.  Check out my article – When is 60% only 30%. You may need some supplemental long term disability insurance.

Let us review your “Open Enrollment Package” today to be certain you are getting the best long term rates.  Don’t hesitate to contact us as the “Open Enrollment” window only last a couple weeks.

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