Whole Life Insurance Vs Term Life Insurance

Both Term and Whole life insurance provide a basic death benefit, but whole life insurance also builds up what is referred to as "cash value," essentially a savings feature that you can withdraw or borrow against.

There are several forms of term insurance:

Level term -- you pay a fixed premium for up to 20 years. This can be a good deal, since it protects you against the effects of inflation and unexpected changes in your health that would warrant higher premiums.

Annual renewable term -- gives you the option of renewing your policy regularly, but at increasing premium rates.

Decreasing term -- features a steadily decreasing death benefit. This might seem undesirable, but it can be sensible for many people. You may need a bigger benefit when you're a young breadwinner with a family to support than when you're a retiree with grown children and a nice nest egg.

Whole life insurance, meanwhile, is designed to cover you for your entire life. These policies charge you a fixed premium each year, one that's typically higher than term insurance. The advantage touted by insurance companies for whole life insurance is that, while part of the premium covers what term insurance would cost, the surplus resides in an account that pays interest and accumulates a cash value. As this "accumulation account" grows, your premiums can decrease over time. Eventually, in some cases, the interest earned can pay the premiums for you. So you won't be paying any more premiums, but you'll still be covered for the rest of your life.

Enter "Universal" life insurance, a form of whole life insurance. With universal life, in years when the insurance company earns more on policyholders' accumulation accounts than they promised, they pass along the extra gain. This sounds good, but in some situations, because of overly optimistic assumptions insurers make about customers' returns, customers can end up paying more than they expected to. "Variable" life insurance policies, which invest in sub-accounts that look like (but legally are not and cannot be) mutual funds, carry the same danger.

With universal and variable insurance, the higher the initial assumed rate of return, the lower the annual payments will be. This is how some unscrupulous agents can sign you up -- through very attractive policies based on unreasonable assumptions. Since most insurers invest to a great degree in bonds, be skeptical of any promised universal rates much higher than the 30-year Treasury rate. With variable insurance, since most mutual funds have trouble beating the S&P 500's average historical return of 10%-12% per year, we'd be skeptical of any projected rates in that neighborhood.

When considering your needs for insurance products for your home or business remember contacting Bennett Insurance Group is the right move.  Give us a call at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com

Additional Benefits of Whole Life Insurance

A key advantage of whole life insurance is that the cost of the premiums paid to the policy will never increase. This is important, so we'll repeat again.

The cost of the premiums paid to the policy will never increase.  The sooner you start your whole life policy (the younger you are) the lower the cost of the premiums. Parents should consider starting while life policies for their very young children.

The reason why this is important is because with term policies, your rates will rise over time. This is due to the changes in your health and age. As you get older, your chances of dying increases. Since the life insurance company takes on that risk, they increase the cost of premiums.  With whole life insurance, the premium cost will stay the same as long as the policy is in force. Even if you are gravely ill, the cost will never change. It's guaranteed.

Bonus Advantages of Whole Life Insurance:  As the years go by, the policy actually gets cheaper. What's one of the eroding factors of money? Inflation. As time progresses, you are paying the premiums with inflated dollars, which means that the premiums get cheaper and cheaper. The time value of money is working for you.

The premiums paid go towards increasing the cash value and death benefit. But the key here is that they are guaranteed. Your cash value and death benefit can never decrease in value unless you start withdrawing the cash value from the policy.

Your whole life insurance policy acts as a savings account, which is one of our strategies to save money. When you pay your premium and your cash value increases, it's guaranteed. When interest is earned and added to your cash value, it's guaranteed. The same applies to your death benefit.

With a whole life insurance policy, you pay the premiums with after-tax dollars. The cash value grows without taxation. You are only taxed after your withdrawals from the policy exceed your basis (the total amount that you put into the policy).

Policy Pays a Dividend: Whole life insurance policies, also referred to as dividend paying, permanent insurance policies, pay dividends. Now, the key thing here is that these dividends aren't taxed. They are actually considered returns of premium.  For example, let's say that you pay $1000 into the policy. At the end of the year, the insurance company looks at how efficient it was with your policy. Let's say they earned 10% on your policy ($100).

After deliberation, they decide to return $90 back to you (the $10 pays for administration fees and a contingency fund). This is not an actual gain. It is a return of premium, which is not considered a taxable event. This tax saving tip is widely unknown. And, a dividend paid to your policy does not lose value. It's value is guaranteed because now it's part of the cash value.

When considering your needs for insurance products for your home or business remember contacting Bennett Insurance Group is the right move.  Give us a call at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com

Insurance Needs and Your Business

Do you have a contingency plan to take care of unplanned events or emergencies. Is your business risk-proof?

No matter how big or small your business is, it faces risks that could lower profit margins and eventually force you to close your doors - often without much notice.

Being true business professionals, we understand how serious these risks can be. We also realize that every dollar spent counts in business. That's why we have created customized business insurance plans to protect your business from unforeseen and unexpected events.

As your Insurance agent, I believe there’s more to insurance than the policy itself. It’s about providing dependable protection and service. That’s why earning your trust is my policy.

Bennett Insurance Group, Inc. has been in the insurance industry for over 20 years and takes tremendous pride in serving you to the very best of his abilities.

Ask our sales team and you will get to know why it's pure fun to work with us.

We are a diversified group of people, past pioneers, and present day visionaries,  all moving towards our goal of providing peace of mind through insurance solutions. With a relaxed workplace culture, flexible benefit programs tailored to individual employees, ongoing training and professional development and a keen focus on internal communications, we expect to grow together with our trusted partner - you.

Our Corporate Culture

• Be accessible, professional and friendly as we strive for service excellence.

• Promote a culture with a broad range of products to meet member needs.

• Offer innovative products and be responsive to the marketplace with superior product delivery.

• Offer technology to meet member needs.

• Build member loyalty, advocacy and insistence.

• Be community-involved and recognized as a good corporate citizen.

When considering your needs for insurance products for your home or business consider contacting Bennett Insurance Group at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com

A Fresh Look At General Liability Insurance

If you’ve heard it once, you’ve heard it a thousand times: if you’re starting a business you’re going to need general liability insurance. But what does that mean? What protection does it afford?  How do you determine your coverage needs?  How does it work?

Liability insurance (also known as Commercial General Business Liability) protects a company’s assets and pays for obligations – medical costs, for example incurred if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees. Liability insurance also covers the cost of your legal defense and any settlement or award should you be successfully sued.  Typically these include compensatory damages, nonmonetary losses suffered by the injured party, and punitive damages. 

General liability insurance can also protect you against any liability as a tenant if you cause damage to a property that you rent, such as by fire or other covered loss.

The coverage you need depends on the type of business you are in and the perceived risk associated with it. For example, a building contractor will need more coverage than a web designer or consultant. Your business location is also another factor that comes into play. For example, some states tend to award more in damages to plaintiffs claiming personal injury than others. Talk to a licensed insurance broker for advice on this before you rush out and buy a policy.

As mentioned above, if you fall into the lower risk category, you may want to consider a Business Owner’s Policy (BOP) which combines general liability and property insurance at a cost-effective rate.

Confused about where to start? Take a look at SBA’s Five Tips for Buying Business Insurance which includes tips on assessing your risk, shopping around, BOPs, and maintenance of your policy.

If you are on the higher end of the risk scale and already have general liability insurance, you can also opt for excess insurance or umbrella insurance that increases your coverage limits. This will cover you in situations in which you’re worried that your existing coverage won’t cover all your costs should someone file and win a claim against you.

Be sure to do your industry research before you invest in any policy. Sometimes a client contract will require that your business has the appropriate coverage or umbrella insurance to perform work on their behalf. Likewise, some construction contractors may add you to their general liability policy as an additional name to be insured for the duration of the project.

When considering your needs for insurance products for your home or business remember contacting Bennett Insurance Group is the right move.  Give us a call at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com

Bennett Insurance Group Presents: Eight's Check, Please! Arizona Festival

April 22 - 28. Highlighting Arizona’s independent culinary scene, Eight’s Check, Please! Arizona Festival will showcase eats from over 35 restaurants previously featured on Check, Please! Arizona in addition to craft beer and wine, cooking demonstrations, a James Beard Award winners’ panel hosted by McGrath, and a chance for fans to audition for a spot on the show. CityScape from 11 a.m. to 4 p.m. Tickets are $60 for general admission and includes food as well as wine and beer sampling. VIP tickets are $100 and include a James Beard Award winners’ private chef seminar; exclusive wine tastings; early entry to the festival 30-minutes before general admission; and VIP valet parking.

Watch PBS for season three of Eight’s popular restaurant review series in which Arizona residents, just like you, share dining-out experiences in a lively roundtable discussion. Each week, Check, Please! Arizona features a trio of guests who dine and then review three local restaurants they recommended to each other. James Beard award-winning chef Robert McGrath hosts the half-hour program.

Don't let Robert McGrath’s “aw-shucks” attitude and well-worn Stetson cowboy hat fool you: Host Robert McGrath of Check, Please! Arizona is one of America's finest chefs and restaurateurs. Winner of the prestigious James Beard "Best Chef in America: Southwest" Award, and founding chef of both Roaring Fork and Renegade Canteen restaurants in Scottsdale, Arizona, McGrath has been a nationally acclaimed chef for nearly two decades. Born in Texas, McGrath's culinary career began with classical training in France, followed by prestigious postings, including chef de cuisine at the Four Seasons Hotel in Austin; executive chef of the Four Seasons Hotel in Houston; and chef/owner of Sierra Grill in Houston, and Brio Vista in Austin.

Festival Location: CityScape - 1 East Washington Street, Phoenix, AZ 85004

Show Times: Thursdays at 7 p.m. & again on Saturdays at 3 p.m. on Eight HD

Website:  http://www.azpbs.org/checkplease/

When considering your need for insurance products for your home or business consider contacting Bennett Insurance Group at 623-979-4140

Brought to you by:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com

Will The Terrorism Risk Insurance Act of 2002 Be Extended?

The Terrorism Risk Insurance Act (TRIA) is a United States federal law signed into law by President George Bush on November 26, 2002. The Act created a federal "backstop" for insurance claims related to acts of terrorism. The Act "provides for a transparent system of shared public and private compensation for insured losses resulting from acts of terrorism." The Act was originally set to expire December 31, 2005, was extended for two years in December 2005, and was extended again on December 26, 2007. The current law, under the Terrorism Risk Insurance Program Reauthorization Act, is set to expire on December 31, 2014.

H.R. 508 (Terrorism Risk Insurance Act of 2002 Reauthorization Act of 2013) was assigned to a congressional committee on February 5, 2013, which will consider it before possibly sending it on to the House or Senate as a whole.  At the time it was submitted the bill was given a 25% chance of making it out of committee and less than a 10% chance of being passed.  It was thought that the Terrorism Risk Insurance Act would fade out of existence.

With the Boston Marathon bombing on April 15th the interest in insurance coverage related to this type of act has taken on a completely new perspective.

However it is not clear that the Boston Marathon bombing will be covered under the current act.  President Obama on Tuesday defined instances where “bombs are used to target innocent civilians” as acts of terror – which includes the Boston Marathon bombing.

“Any event with multiple explosive devices – as this appears to be – is clearly an act of terror,” a White House official told reports after the bombing.

But in order for damaged businesses to benefit from the federal reinsurance program, an attack must be certified as an “act of terrorism” by Secretary of the Treasury Jack Lew, as well as the US Attorney General and the Secretary of State, the Wall Street Journal reports.

And in order for these department heads to certify a violent act as “terrorism”, there needs to be a minimum of $5 million in inflicted damages – regardless of the motives behind the attack. About 60 percent of commercial policyholders have purchased insurance against terrorist attacks – an investment that likely won’t help businesses damaged in the Boston Marathon attack, considering the small amount of damage in comparison to other attacks, like 9/11.

Do you know what your business interruption insurance covers?

When considering your needs for insurance products for your home or business remember contacting Bennett Insurance Group is the right move.  Give us a call at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group, Inc.
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com

Insurance Broker Advantages

The insurance industry is a vast landscape.  The right insurance advice can be very important.  Good insurance agents spend 20-30% of their time learning at seminars how to best handle complex insurance situations.

What makes a good independent  insurance agent?

When it comes to financial security and insurance protection, your insurance agent should be a trusted advisor who offers personalized and expert advice to you and your family, now and in the future.

Top three benefits of an independent insurance agent or broker

Personal Service
Agents are trained to assess your needs, offer unbiased advice and support you should the unexpected happen.

Peace of Mind
Your independent agent is a part of your local community and can handle your full range of insurance needs all in one place.

Value
Your independent agent can access insurance coverage from multiple carriers to provide you with the best mix of savings and pricing.

Relationships Matter
A survey by the Independent Insurance Agents & Brokers of America (IIABA) discovered that three out of four people use an agent when purchasing insurance. More than half of the respondents over age 55 have purchased insurance from the same agent for at least 20 years.

If you’re like most people, you want to develop a long-term relationship with an agent, too. But how do you go about finding someone who is professional and reputable? For starters, you can choose from a select group of agents that are part of Trusted Choice. 

When considering your needs for insurance products for your home or business consider contacting Bennett Insurance Group at 623-979-4140

Presented By:
Jim Bennett
Bennett Insurance Group
623-979-4140
http://jimbennettinsurance.com
jim@jimbennettinsurance.com