Designating Life Insurance Beneficiaries: Who Gets the Money?

The beautiful thing about purchasing a whole or term life insurance policy from the Wellspring Insurance Network Inc. is that you have the power to decide who will receive the benefit of your foresight. Whether your family lives in Frederick, MD near you or across the globe, it is entirely up to you to make this decision.

Keeping It Simple with the One You Love

Many people do the simple thing and designate the beneficiary of their policy as their spouse or longtime roommate. This certainly speeds up the process of distributing funds upon your death, but in reality, choosing only one person is the easiest decision. It will enable that person to handle your final affairs with fewer distractions, but it can mean they are left to sort out the arguing relatives. You do have other choices.

Choose More than One

Maybe your kids are now in college or just starting out on their own. You want to help them with debt reduction or a down payment for a home. You can select multiple beneficiaries for your policy where each child gets a stipulated amount and the rest is left to your spouse. You can send the money to a trust and have it paid out over years or in a lump sum. You can send it to your military buddy that served with you.

Update Your Policy as Time Goes By

Once everybody is all grown up, you may be thinking about the next generation. Remember to revisit your life insurance policy after major life events such as retirement, promotions, graduations, marriages, and births.  Your agent at Wellspring Insurance Network Inc. is available to help you with the details, ensuring that all your life’s work in the Frederick, MD area leaves behind a positive legacy for your most valued people.

 

How to Avoid Common Problems with Commercial Insurance

It helps if business owners understand the common problems that arise with commercial insurance so that they can avoid them. Working with your agent at Wellspring Insurance Network Inc., serving Frederick, MD and the surrounding area, uncovers these problems with a commercial insurance review to make sure there is adequate coverage for the business.

Here are the common problems to consider:

  • Undervaluation of Property:  Adequate coverage for property uses the replacement value instead of the purchase price, depreciated price, or value if sold. For example, a ten-year-old piece of equipment may not be worth nearly as much as a new piece of the same equipment. Using the historical purchase price, the value after depreciation, or estimates of what it can be sold for, does not adequately protect the business if it needs this equipment to operate. It is better to use replacement value at a current price.
  • Not Covering Special Risks: Businesses may have unique risks because of how they operate, who their customers are, or what industry sector that they work in. In addition to general liability coverage, these special risks also need insurance coverage.
  • Misunderstanding Coverage: Business owners do not always have a clear understanding of the things that are covered by insurance. Reading insurance policies carefully is helpful as well as asking your agent questions about the coverage if you do not understand the policy terms.
  • Failure to Plan for the Worst-Case Scenario: Business owners need to think about the worst-case scenario in order to make sure the business does not fail when suffering a major setback. For example, cybersecurity insurance, insurance against the risk of terrorism, and business interruption insurance should be in place for most businesses.

Once each year, and at any time when businesses circumstances change, it is important to have a commercial insurance review with your agent from Wellspring Insurance Network Inc. in Frederick, MD to make sure coverage is adequate. Take this opportunity now to think about insurance coverage and give them a call to set up an appointment for an insurance review.