www.youtube.com/watch?v=jLoeas67u74

www.youtube.com/watch?v=tIgtwTKzE58

Why are you buying life insurance coverage?

The first step in figuring out how much life insurance you need begins with a simple question: “Why do you want life insurance?”
Answering this question is half the battle. People purchase life insurance for different reasons. Here are some of the most popular reasons:
• To protect an income stream.
• To allow your survivors to pay off all your debt.
• To ensure your children can attend college if you are no longer here to support them.
• To compensate for the loss of a stay-at-home parent

Protecting an income stream

Protecting an income stream is the most popular reason people take out life insurance and it’s easy to understand why. Think about it. If you or your spouse were to die unexpectedly what kind of financial burdens would that place on the surviving members of the family?
If you make $100,000 a year and your wife stays at home with the kids then what would happen if you suddenly passed away? In the absence of life insurance where would she obtain the financial resources to pay the mortgage, the car payment, food, and other expenses? Would she have to quickly find a job…would she feel pressure to have to quickly remarry?
If you had life insurance that was able to pay $50,000 a year for 15 years then that would be a tremendous help during an already difficult time.

To pay off debt

I’m assuming you’d prefer to leave an inheritance of money (not debt) to your family. Think of all the debt you currently have (including the house). If you were to die then the burden of that debt falls on your loved ones. How nice would it be if when you died your home, cars and other consumer debt was completely paid for?

To pay for your children’s college

College is expensive enough as it is. But imagine how much it will cost 10 years from now. Many single parents cannot afford to put their children through college. But a well-planned life insurance policy could change that. Even if you weren’t alive you could still put your kids through college by planning ahead today.

Stay at home parents

The primary breadwinner is not the only member of the family who needs life insurance. Have you ever considered how expensive it would be to pay someone to do the job your stay-at-home spouse does?

After you know “why” then the next step is…

Once you know why you need life insurance then you’re ready to proceed to the second step. This step involves taking into consideration several factors which include:
• Inflation
• The distribution rate (how much return can you expect on your money?).
• How many assets you have.
• How much debt you have.
• How long you want to have that income stream coming in.
• How the life insurance will impact your estate taxes.

Don’t do it “tomorrow”

So now can you see why a cookie-cutter approach simply will not do when we’re talking about a topic as important as life insurance? I know it can seem like a daunting task to answer all these questions and it’s tempting to put this on the “backburner” but I encourage you not to.

No, I’m not just trying to make a sale here…whether you go with Lanier Upshaw or another trusted advisor is not the point. What matters most is that you have a plan in place in case something unexpected happened to you tomorrow. I hate to sound so depressing but according to recent studies the mortality rate is expected to remain at 100% over the next 50 years.

So why not just bite the bullet and answer these important questions once and for all. Then you can check it off your list and go to sleep knowing your family will be taken care of even if you’re no longer here to support them.

If you want to speak with one of our life insurance specialist feel free to call 863-686-2113 for a free consultation. If nothing else at least you’ll find out how much life insurance you need for you and your spouse.

Safeway’s “Healthy Measures” Program

Safeway spearheaded a policy of “health re-engineering” back in 2005. The company’s goal was to give individuals more control of their health dollars and focus more on prevention than on treatment. 

Under Safeway’s “Healthy Measures” program, employees undergo screening tests (including blood pressure, cholesterol, and weight control), and participants who score well pay lower (up to $780 per individual) health insurance premiums.  According to Safeway their efforts reduced their total health care spending by 13% and employees who signed up have saved more than 20% on their premiums.

Steve Burd, President and CEO of Safeway wrote in the Wall Street Journal, “At Safeway, we are building a culture of health and fitness. The numbers speak for themselves. Our obesity and smoking rates are roughly 70% of the national average and our health-care costs for four years have been held constant. When surveyed, 78% of our employees rated our plan good, very good or excellent.”

In addition to the $780 Healthy Measures incentive, Safeway offers employees many other ways to be healthy including:

• A state-of-the-art fitness center near Safeway’s Pleasanton headquarters.
• Gym membership discounts.
• 24-hour nurse hotline.
• Free lunch at the company cafeteria for every eight visits to the gym.
• Subsidized cafeteria, which offers lots of vegetarian food.
• Portion size, calorie count, cholesterol and fiber count posted for all prepared meals in the cafeteria.

 Burd stated in the Journal, “As much as we would like to take credit for being a health-care innovator, Safeway has done nothing more than borrow from the well-tested automobile insurance model. For decades, driving behavior has been correlated with accident risk and has therefore translated into premium differences among drivers.

Stated somewhat differently, the auto-insurance industry has long recognized the role of personal responsibility. As a result, bad behaviors (like speeding, tickets for failure to follow the rules of the road, and frequency of accidents) are considered when establishing insurance premiums. Bad driver premiums are not subsidized by the good driver premiums.”

 Farrell Backlund Insurance Agency

 Taunton, MA insurance agency, Farrell Backlund (FB Insure) understands the cost of risk as they advise clients to minimize it wherever possible. Taking their own advice to heart, FB Insure knew there would be a positive return for investing in their employees’ health. They just weren’t sure what the best course of action to take would be. So they consulted with a company who specialized in wellness.

FB Insure chose EVOLUTION Bodywork & Nutrition, (EVOLUTION) to help them implement a wellness program. EVOLUTION’s solution was all encompassing. They addressed the company’s wellness and culture as a whole while also creating individualized programs to meet each participant’s needs and goals.

EVOLUTION’s first step was to ask employees to complete a confidential Personal 
Wellness Assessment followed by screenings for blood glucose (non-fasting), cholesterol, blood pressure and body composition. 

Up until now this sounds like standard operating procedure for any employee wellness program. But they didn’t stop there.

The next step, and most unconventional in our opinion, was that each participant was encouraged to bring a family member to the first interview with a registered dietitian, especially if that family member was responsible for shopping and cooking.

For the first six months of the program, participants met with a registered dietitian twice a month. These wellness counseling sessions were conducted on an individual basis, during business hours, paid by the employer.  Employees were also invited to attend cooking 
demonstrations, taste tests, and grocery store tours.

As the program progressed a physical fitness component was added which included small group exercise and stress management classes, as well as a pedometer program.

“We’ve been very happy with the results of EVOLUTION’s Employee Wellness Programs,” says Russ Martorana, President, FB Insure. Successful results have included:

• After three months, participation remained at 100%, despite anticipated attrition.

• At the completion of twelve months of programming, employees had lost nearly 500 pounds and those with total cholesterol results in the borderline and high risk ranges decreased. 

• In less than 18 months, significant improvements have been seen across the board  for FB Insure employees: in body fat; cholesterol; blood pressure; physical activity; smoking prevalence; systolic and diastolic blood pressure; seat belt use; and overall physical health.

• Decrease in employee absenteeism.

• Increased sense of community and peer support.  “Walk into the kitchen and you will see people sitting around talking about a recipe that they made for dinner last night,” says Josie Lorina-Baker, marketing director at FB Insure.

What About You?

In what ways could you take charge of your health related expenses at your company? If you currently have a wellness program please share what you believe has been the most effective and most challenging part of it.

But with the rising costs of health insurance many companies are frantically searching for ways to cut costs. Many companies who currently have wellness programs are asking the question, “Are wellness programs really worth it?” Yes, we all know it’s important but the question remains, “Is it worth it?” In other words does it save the company money or not?

That’s what we want to focus on in today’s post. We know being healthy is important but as a business owner you cannot afford to bankrupt your company by launching a health crusade. But if a properly devised wellness program can cut costs then, and only then, is it a win-win.

 The Evidence

 Before we move on let’s consider the evidence:

• According to the National Safety Council, nearly one million workers a day are absent due to stress, costing American companies nearly $300 billion a year in loss of productivity and the cost of temporary help [source: Risk & Insurance]

• The use of tobacco, alcohol and other drugs costs American companies approximately $100 billion annually [source: The Wellness Councils of America].

• The AAOHN survey questioned 500 workers nationwide about their perceptions of wellness programs. More than three-quarters of all participants indicated wellness programs are a good way to improve their overall health, and nearly 60% consider these offerings an incentive to remain with their current business.

If companies are losing $300 billion a year because of stress and $100 billion a year due to tobacco, alcohol and drug use then it’s safe to conclude we have a problem. This is not only a health problem it’s also a threat to the financial well-being of your company. And this is why companies place such high value on wellness programs.

In fact, more than 80% of American businesses with 50 employees or more have some sort of wellness program [source: The Wellness Councils of America]. So chances are if you’re reading this you have a wellness program. If you don’t, we strongly encourage you to consider starting one. Not because it’s “important” but because in the long run it can save you money.

What’s the ROI for Wellness Programs?

The more appropriate question is, “What’s the ROI for my company’s wellness program?” This is because no two companies are alike.

We can look at IBM who spent $1.3 billion on health care for its employees, dependents and retirees in 2008 and who continues to invest in wellness (even though it cut expenses in other ways, including layoffs).

Although it can be difficult to determine an exact return on investment, IBM worked with the Health Management Research Center at the University of Michigan to try to assess the program’s returns. According to Joyce Young, IBM’s director of well-being, results showed it saved around $80 million in reduced health claims.

While you may not be spending $1.3 billion on your health care cost we’re willing to bet it’s still a large portion of your company’s expenses. In 2008, the median health care cost per employee was $7,173 according to a survey by human resources consultants Watson Wyatt and employer coalition National Business Group on Health. And we all know the cost has only gone up since then.

So an average company with only 7 employees would spend $50,211 a year on health care related expenses. If that company saved roughly 16% like IBM did, they would see a $8,033 annual savings.

Do You Think It’s Worth It?

So to answer the original question, “Do we think wellness programs are worth it?” Well, it depends. A properly devised wellness program (with incentives) where the long-term results are monitored is worth it. But simply posting pictures of vegetables in the lunch room and sending out email blast reminders to “be healthy” is not. A wellness program is something you need to setup correctly in order to avoid creating a financial black hole called “Health and Wellness.”

For it to work it must be practical, employees must engage (hence the incentives) in it and the cost vs. savings must be monitored. If you want to read a couple real life success stories about wellness programs our next blog post will cover that.

As the taillights of the fire truck go out of sight, the realization that one faces a situation too big to face alone becomes apparent. Someone, somewhere, is going to have to lend a helping hand, and help guide the family through the crisis.
The task of just continuing to keep up with daily responsibilities becomes a monumental task after a fire. Day-to-day life itself becomes emotionally and physically draining.

Many look to their insurance agent to lend that much-needed, helping hand when a fire occurs and changes every thing.
A good agent knows how to guide a family through trying times and navigate the paperwork associated with making a claim on a homeowners policy. In some cases, disaster recovery has already been discussed with a resultant plan in place.
The agent can also provide contact information for local organizations that offer disaster relief for families in times of need. For example, some find it helpful to seek counseling to deal with the devastation a fire leaves in its wake.
Tisha and Samantha met at a fire-recovery support group. Tisha’s agent recommended the group when he visited her the day after the fire. Samantha found the group thanks to a recommendation from the pastor of her church.

The women, both married mothers of two, called a hotel room home throughout the Christmas season that year.
The stress of rebuilding from square one, with no idea how to reach square two, forged a bond between the women. They walked through the process side by side, supporting one another along the way.
The experience taught them many things.
They also learned the ins-and-outs of homeowners insurance policies.
It was the latter that truly separated the post-fire experience for the pair.

TISHA

Tisha and her husband Rob were high school sweethearts who went hand-in-hand to college. The couple spent their college years studying, working, saving, and planning to purchase a home and marry after graduation.

By the time that day came, the families of the couple had become one large, tight-knit family. The four parents helped guide the newlyweds through the home-buying process. They also stressed the importance finding an agent who would assist in making sure a well-designed homeowners policy would fit their needs.

Neither Tisha nor Rob really knew the details of their policy the day the paperwork officially made them homeowners.
Flash forward fifteen years and the two-person family that bought the house, was now a four-person family. The couple had picked up where their parents left off, and had made their house a loving, supportive, environment for their children to grow within.

Then the phone call came.

The family was at the local shopping mall enjoying a dinner together after a long day of Christmas shopping when Rob’s cell phone rang.
“It’s Joe from next door,” he said, looking at the caller ID.
Rob started to send the call to voice mail, but it was unusual for Joe to call, so he answered it. He was stunned at what Joe had to say.

The family’s house was engulfed in flames and no fewer than five fire trucks were there battling the blaze. The details of the day from that point forward are little more than a blur to Tisha and Rob. Everything they had worked so hard to attain was gone before they even got to the scene.

The family crammed into Tisha’s parents’ home that night, despite there only being two bedrooms and one small bathroom. She called her agent first thing the next morning and he helped guide them through the claim and rebuilding process.
The insurance agent and adjuster went to the scene quickly, and put together a plan to help the family get back on their feet.

It was during that first discussion with her insurance agent, some immediate fears were relieved. Her policy included replacement coverage of not only the house but their belongings as well. It also included loss of use coverage that paid for lodging so they wouldn’t be a burden on her parents.

The details of the policy meant Tisha’s family would have enough money to rebuild their home, replace their belongings, and enough money for room and board until a new house could be built. Granted, some of the personal belongings could never be replaced, but all the essentials would be taken care.
The agent was also able to immediately get money in their hands so they could buy clothes, food and secure a place to temporarily live.
Even though this was a huge disruption in their lives, the prompt attention by the agent and his ability to channel all the resources for them kept the discomfort to a minimum.
During this process, the agent even provided the names of several organizations designed to help fire victims put their lives back together, including the support group where she met Samantha and learned not all insurance policies are created equal.
SAMANTHA
Samantha and Samuel, known to their friends as the Sams, had lived in their home for just five years when disaster struck.

It was a small home in a quiet neighborhood where the children could play outside without worry.

The couple worked hard and lived in a cramped apartment for eight long years before saving up enough to make a down payment with the clout to bring their monthly mortgage payment into a range they could afford, and still get what they wanted.

When it came time to sign the deal with the bank, not much thought or time was given to the purchase of a homeowners policy. A few suggestions were offered to them, but they opted to use the Internet to collect quotes, and ultimately opted to go with the lowest price assuming it’s just insurance, right?

They never again gave the homeowners policy much thought after that; it seemed to satisfy the bank so they assumed everything was ok.

They were set, life was good. That is, until one night in late December.

The couple was jarred awake by a downstairs smoke alarm around 2 a.m.
Samuel got out of bed to investigate the alarm, but he didn’t have to go far. He smelled smoke as soon as he opened the bedroom door and immediately went cold with fear.

From the top of the stairs he could finally see what his nose and smoke alarm had already sensed. The living room, on the lower level, was filled with a thick smoke that ominously glowed from the flames that were ravaging the home.
The family narrowly escaped in their pajamas and called for emergency services from the front yard. They never felt the 20-degree air that whipped around their skimpy clothing as they watched their home burn.

They were in shock.

This was only the beginning of the nightmare for the Sams and their children.
The ‘cheap’ insurance company was slow to respond to the emergency; in fact after dealing through the maze of automated responses, they were totally frustrated and still not knowing where to turn.

When Samantha finally spoke with a representative on the phone, she was told her policy would cover the damage to the house. Unfortunately, the cost to build houses in their area had risen and the policy limits had never been adjusted. To make matters worse, when advised of their personal belongings policy limit, they realized they were woefully underinsured.
This policy also covered the costs of a place to stay, food and other expenses, for up to a month after the fire. However, due to inefficiencies and lack of personal advice, the Sams’ rebuilding process took more than a month to even start. On top of this, they had to rely on friends and their church to provide for the clothes on their backs.
Valuable time slipped by as they waited for action.

The family found itself forced to divide and move into the homes of relatives while the situation was resolved.

The slow-to-come reimbursements sent the family’s finances into a downward spiral.

Then things got even worse.

Their coverage didn’t provide enough to cover the costs of rebuilding a home equal to the one they lost. The minimal limit on their belongings wouldn’t even refurnish a living room equal to the one that burned.

In just five years, inflation and rising construction costs had rendered their coverage inadequate.

A second loan was required to cover the additional expenses of rebuilding a comparable home, and fill it with appliances, furniture, computers and other essentials. The family’s budget was not only blown, it was now tighter than ever with the new payments.

THE AFTERMATH

Within a few months, Tisha’s house was rebuilt and the family was settling in to their new lives. The past was behind them. They had climbed out of the rubble and were on their way toward a comfortable life once again.

While Tisha’s family was putting their new home in order, Samantha and her family were still trying to find affordable contractors to start work on their house. The ‘cheap’ insurance 1-800 number was providing little assistance when they needed it most. The horror just dragged on for the Sams.

Ultimately, the Sams spent more than anticipated on the rebuild and didn’t have enough money to properly furnish the home. For months after moving into the new house, nearly every room lacked at least one major item. Specifically, the kids room lacked bed frames, the living room lacked seating, and there was still no kitchen table.
Tisha and her family felt mostly re-established within a year of beginning their rebuilding journey.

At the end of that first year, the Sams were struggling to pay the bills with the additional loan payments pushing the boundaries of the family budget. Samuel picked up a second job and was rarely home to see his wife and children. Child care costs were also eating the family’s budget away as Samantha also had to increase her work efforts to help make ends meet.

Financial strain, exhaustion, and the stress of recovering from a house fire, can do more than just destroy the framework of a house, it can destroy a home as well.
Within two years of the fire, the tensions became too much for the young couple and led to divorce.

The Sams’ American dream was shattered that night in December and became a nightmare that haunted the couple for nearly a decade after they split.

BE PREPARED

The hands that helped Tisha and her family through the ordeal, were the hands of an attentive insurance agent, who knew their needs and was working within the guidelines of a quality homeowners policy.

If the policy is inadequate before the fire happens, there is little that can be done, even by the nicest of agents. Your home is your biggest personal asset; why would you want to protect it with discount coverages?

House fires are responsible for inflicting $7 billion in damages to homes in the United States annually. That number climbs every year as the cost of materials and labor to rebuild a home continue to skyrocket.

Having a homeowners policy that doesn’t cover more than the value of the home when the policy was created is flirting with financial disaster.

When it comes to insurance, cheaper isn’t always better. What matters are the details contained in each individual policy. Also make sure your agent knows your needs and a level of expectations are established with both parties.

Signing your homeowners policy contract is definitely one time where it pays to read, and understand, the fine print. A professional agent can guide you through this process.

by Deborah Winters

I’m going to teach you three ways to discern if you’re talking to is just an agent or a guide disguised as an agent. But first let’s look at the differences between guides and agents.

Guides

Guides are the people you like talking to. They’re the likeable experts and trusted authorities. A guide is a great leader, excellent decision maker and problem solver. But their real value is their ability to help you reach your destination quickly and safely. Guides show you the way.

Agents

Agents are traditional insurance salespeople. They are trained to interpret policies and products to the customer. They’re good at following directions but struggle with problem solving and are predominantly left-brain thinkers. They’re not bad people, they just lack leadership abilities. They usually think along the lines of, How do I get more business today? or I need to close some deals. Agents sell.

Why you should choose a guide

To start with, they are easier to work with since they have a desire to teach not sell. And guides are able to see the big picture. Agents struggle with concepts that are outside the box of their traditional corporate policies.

But the number one reason why you should choose a guide is trust. Is it worth it to go with the cheapest price if you constantly have to spend hours reviewing your policy because you don’t trust your agent?

When you find a trustworthy professional hold on to them for dear life. If they make your life easier, save you money and can think for themselves, then you have something valuable.

How to tell the difference

Now you know what you’re looking for. But how do you find out which agents are really agents and which are guides disguised as agents? Here are three ways to tell:

1. Do they listen?

Are they actively listening to you or just waiting for their turn to talk? You can tell right away if someone is paying attention or is distracted. Guides are expert listeners.

2. Do they respect your time?

Don’t you hate it when people waste your time? Well here is one time management tip that will save you hours: Don’t do business with people/companies that drain your time account. Are your initial business interactions simple and to the point or are they complex and confusing? It pays to work with people who respect your time.

3. Consultative or Sales-y?

This doesn’t require much explaining. You know what it’s like to endure a pushy, high pressure sales pitch. It’s annoying and uncomfortable.  If you sense this sort of behavior with your agent I would reconsider doing business with them. Guides advise and let you buy while agents convince and try to sell.

I’m curious to hear your guide vs. agent stories. Feel free to share your experience by leaving a comment below:

By Bill Dorman 

 When it comes to saving money on risk management it’s a good idea to shop around until you find the lowest premium. But the path that leads to business failure is paved with good ideas. In today’s business environment you need remarkable ideas to succeed.

 I’ll explain two different risk management strategies. A good one and a remarkable one (hint: you should choose the remarkable one).

 The Copy, Quote and Pray Strategy

 This is the traditional way of selling insurance. The agent prepares an “apples-to-apples” quote based on your existing coverages. He offers you the quote, crosses his fingers and prays the price is lower. If the quote turns out to be higher they move on to the next prospective client. It’s a good idea…or is it?

 The Total Cost of Risk Strategy

 You’ve probably heard the term, total cost of risk (TCOR) but do you know what it means? Instead of boring you with a lengthy definition full of insurance jargon I want to help you understand the TCOR strategy in a practical way.

 Your company’s total cost of risk can be broken down into three categories:

 3 TCOR Categories

 Direct: OSHA Fines, Insurance, Managed Care, Deductibles, Legal Expenses, Loss of Productivity post accident, Management time to attend hearings, etc.

 Indirect: Loss of Productivity Due to Employees Abusing Internet, Reputation with Insurance Carriers, Reputation with Vendors, Loss of Morale, Loss of Reputation, Employee Gossip, etc.

 Preventative: Safety Meetings, Safety & Risk Management, Pre-Employee Screening, Safety Equipment, Culture Management, Wellness, New Hire Training, Salary of Safety Personnel & Expenses, Personal Protective Equipment, etc.

 Assembling the Puzzle

 Now imagine each subcategory (insurance, employee gossip, pre-employee screening, etc.) is a puzzle piece. The TCOR strategy first turns every piece over (analysis) and starts to assemble different sections of the puzzle (implementation of strategy) until the puzzle is complete (long-term cost savings).

 Instead of only looking at one piece of the puzzle (insurance premium) the TCOR strategy considers every facet of the business and how each piece relates to the others. The end goal is to meet your company’s long-term objectives and to see an overall reduction in cost.

 This Requires Partnership

 In order for this remarkable strategy to work it requires a partnership between the broker and the company. A broker could have the best TCOR strategy available but if the company they are serving does not partner with them, then it’s useless.

 The company must work together with the broker and be open to new ways of doing things. The TCOR strategy is much different than the conventional “copy, quote and pray” strategy which requires almost no effort on the part of the company. But remarkable results require participation from both parties.

 For those willing to think outside the box and commit to achieving long-term goals the TCOR strategy is the best way to go.

 What are your thoughts regarding TCOR? Have any of you assembled the puzzle and would you be willing to share how that helped your bottom line?