Why You Need Home Insurance

Your home is likely your most valued asset. Even if you are renting, all your valuables are stored within your residence. Still, you may wonder why you actually need a Home insurance policy. Here are a few reasons why you need a home insurance policy.

Lenders Require Home Insurance

If you have a mortgage on your home, your lender will probably require you to have home insurance. This is to protect their investment as well as yours. Phil Klein Insurance Group can help homeowners in West Bloomfield, Michigan determine the homeowner’s coverage that is required by their lender.

Financial Protection

Homes can become damaged due to a myriad of things, from natural disasters to leaky roofs. These damages may well exceed what you can cover out of pocket, even if your home isn’t a total loss. Without homeowners insurance, you would be faced with getting a loan to repair or replace your home. Then there’s the cost of replacing your things, which most loans won’t cover.

Your Possessions are Valuable

If you are renting, you may not see a need for home insurance. However, your possessions are valuable too. Even if your home doesn’t contain priceless valuables, it would require a good deal of money to replace your possessions. Most of us accumulate possessions throughout our lives and don’t really consider how expensive it would be to purchase everything we need for our home at one time.

Protection From Liability

In many cases, if someone is hurt or injured on your property, they can hold you responsible for their medical bills. In some cases, you may be responsible for lost wages or damages as well. Homeowners insurance can protect you from these risks, and pay associated costs in the case of an incident.

Phil Klein Insurance Group is an independent insurance agency in West Bloomfield, MI. This allows us to find the right home policy for your needs.

 

How To Know When You’re Ready to Retire

Many workers look forward to retirement and the new changes and opportunities it brings; but, some might struggle to determine when they are ready to retire. There’s no exact science or magic number to determine the right time to retire. Instead, attention to retirement savings and creating a plan for what to do during retirement may help you better understand when you are both financially and emotionally ready for retirement.

Financial Retirement Readiness
According to a 2018 study of over 2,000 working Americans ages 40-70, about one-fifth of respondents were financially unprepared for retirement.(1)  While many retirees rely on Social Security benefits to help fill savings gaps, currently, Social Security benefits only cover approximately 40 percent of an average worker’s pre-retirement income.(2)  In addition to personal savings and Social Security benefits, other sources to supplement retirement income include individual retirement arrangements (IRAs), employer-sponsored retirement plans (401(k) plans, pensions, profit sharing plans, etc.) and fixed indexed annuities.

Everyone has different financial needs in retirement. When considering whether you are ready to retire, evaluate your financial strength to see if you are in a position to stop working. A retirement calculator can help you establish a retirement savings goal by comparing your income and current savings with your age and anticipated expenses. Various retirement calculators are available online, free of charge.

An additional way to help gauge financial readiness is to examine how retirement costs will affect your nest egg. Some retirement costs to consider may include:

*Healthcare
*Housing
*Debt
*Extra expenses, such as traveling
According to the Bureau of Labor Statistics data, older households typically spend an average of $49,279 a year on living expenses, including food, housing, clothing, transportation, healthcare and entertainment.(3)  Having a plan in place for how to pay for expenses may help you feel more confident in your decision to retire.

Emotional Retirement Readiness
While meeting financial goals is an important part of retirement planning, an often forgotten aspect is emotional readiness. For many, working provides a sense of validation, in addition to other psychological benefits, such as a daily structure and social interaction. Because of that, retiring may present a sense of loss for some and be a risk for depression.(4)  Retirement is a major change, with emotional implications, that shouldn’t be done on a whim. Consider creating a list of your goals for retirement. Do you want to travel? Spend more time with your grandkids? Start a new hobby? Work part time? Move to a new city? After you’ve established your goals, create a plan to achieve those goals.

Here are some other ways to better prepare for the emotional side of retiring:

*Create a plan for how you will spend your days in retirement
*Establish a retirement bucket list
*Find or create an emotional support system of friends and family
*Pursue a new hobby or consider a part-time job as a bridge from working to full retirement(4)
Deciding when to retire can be a complex decision with many factors contributing to retirement readiness. Ultimately, the only person who truly knows when you are ready to retire is you. Paying attention to both financial and emotional milestones and defining retirement goals can all help you in making the decision to retire.

If you need professional guidance or have questions, please call us today at (248) 682-7445 or email owen@philkleininsurance.com

Footnotes
Footnote 1 Indexed Annuity Leadership Council, “The State of America’s Workforce: The Reality of Retirement Readiness” 2018↩
Footnote 2 Social Security Administration, “Learn About Social Security Programs” ↩
Footnote 3 Bureau of Labor and Statistics, “A Closer Look at Spending Patterns of Older Americans” 2016↩
Footnote 4 US News and World Report, “Can Retirement Be a Depression Risk?” 2017

Does Commercial Insurance Cover Damage From a Car Hitting the Building?

So many things can happen to cause a financial loss when you are a business owner. Commercial insurance is designed to help protect the business from loss as a result of a variety of events. Having the right type of insurance and the right coverage amount can prevent those losses and allow you to rest easy knowing that the coverage is in place when you need it. So what happens if there is an event such as a car hitting your building?

Damage to a Structure

Anything can happen at any time when you own a business. Having solid insurance is a way to protect that business from possible devastation. For example, when a car runs into a business and causes damage, the commercial insurance will generally cover the cost of repairs and injury as a result of that accident. Not all insurance policies provide the same amount of coverage, so know what your policy will allow and make any adjustments you deem necessary to protect you and your company.

Insurance Protection for Your Business

One of the most important ways you can protect your company is by selecting and purchasing the right commercial insurance. Always consider the risks you face based on location and other factors. A good insurance company will have agents that can help you figure out the type of coverage you need to prevent losses. If you have a business in or around the West Bloomfield, MI area, you should consult Phil Klein Insurance Group to find out how to adequately protect your investment.

Don’t take chances on your commercial insurance coverage. Call or stop by Phil Klein Insurance Group serving the businesses of West Bloomfield, MI and the surrounding area. Get the coverage you need to have peace of mind. 

Life insurance coverage options

Life can be unpredictable and you never know with certainty what the future holds. With a bright future ahead of you and great plans for your family, the tides can turn upside down with a twinkle of an eye. So, what happens to your loved ones once you’re no more? Life insurance ensures that your beneficiaries continue to live a meaningful life even after you’re no more. With lost income, buying food, paying bills, and footing college fees can be a daunting task for your loved ones, and that’s why life insurance from Phil Klein Insurance Group comes in.

There are several life insurance coverage options to consider in West Bloomfield, MI. Some policies are packaged like an investment plan while others are tailored to provide a lump sum payment upon the demise of the policyholder. Here are the common coverage options to consider:

Term Life Insurance. Everyone immediately thinks of term life insurance whenever life insurance is mentioned. This coverage is often affordable but is also limited in terms of the duration of coverage. It doesn’t accumulate any cash value in the entire duration of coverage but only offers pure death protection.

Whole Life Insurance. This policy lasts the entire lifespan of the policyholder. It has no term limit and covers the insured as long as the premiums are paid. It comes with a cash value benefits and a death benefit as well.

Universal Life Insurance. For those seeking more flexibility, Universal life coverage provides both components of cash value benefits and death benefits. The only difference is that the policyholder gets to choose the coverage limits that go towards each component.

At Phil Klein Insurance Group in West Bloomfield, MI, we offer several other options to consider including Variable Life and Variable Universal Life Coverages. Each policy comes with unique benefits that suit the specific needs of the insured. For more information about our life insurance coverage options, visit our website or give us a call today.

 

 

Ready for your life insurance health exam?

When you’re applying for an individual life insurance policy, you’ll usually need to complete a simple medical exam administered by a paramedical professional.  However, at PKIG we can offer up to $1 million in coverage without a medical exam in many cases.  If you do need to complete the exam, follow these steps to prepare for your exam so you can minimize your chances of inaccurate test results and set yourself up to receive a fair rate on your policy.

When to Eat

Read and follow your pre-exam directions.  If you’re supposed to fast for eight to 10 hours, make sure you do.  Fasting properly means you won’t get a false positive on blood glucose tests for diabetes or artificially high cholesterol levels because of something you ate.  Don’t even drink black coffee the morning of, as caffeine can increase your blood pressure.

Tip: If you accidentally eat something before your test, ask the examiner if you need to reschedule.

What to Eat

You may also want to pay attention to what you eat and drink for at least 24 hours beforehand.  Avoid alcohol, skip salty foods and drink plenty of water. Consuming too much alcohol, too much sodium or not enough water can throw off test results for liver and kidney function as well as urine concentration.  It’s also easier to give blood when you’re well-hydrated.

Exercise Considerations

Finally, avoid tough workouts in the 12 to 24 hours before your exam, as heavy exercise can lead to urinalysis results that may suggest kidney problems and high blood pressure. But a light workout, like a walk, may be a good idea to help you get a good night’s sleep.  And, being properly rested can possibly improve your test results by decreasing anxiety and lowering blood pressure.

Thinking over your life insurance options? Reach out if you have any questions.  248-682-7445 or owen@philkleininsurance.com

Extended Family Moving in With You? Does Home Insurance Cover Their Property?

It is becoming more and more common for many members of the same family to live under one roof. Children are living with their parents longer than they ever have before, or are coming back after leaving the nest. And the elderly are starting to live with their children or other members of their family, such as nieces and nephews. You likely know that your home insurance policies cover your personal property in the event of a fire or against theft. Here at Phil Klein Insurance Group, serving the greater West Bloomingfield, MI area, we have noticed that people are asking whether their extended family’s property is covered as well. Here is the answer to that question. 

Every home insurance policy is different. As such, the wording from one policy may vary from that of another policy. However, as a general rule of thumb, if the people moving in with you are actually relatives and related to you, their property is typically covered under your home insurance policy. But, you will want to carefully review your policy and the wording to ensure their property is covered. You should never assume it is. If it is not covered, you may be able to add them to your policy or they may be able to purchase a renters policy to cover their belongings. 

If you have extended family moving in with you, now is the perfect time to review your home insurance policy. If your policy no longer fits your needs, contact Phil Klein Insurance Group, serving the greater West Bloomingfield, MI area today. We can help you find the right policy for your needs. 

Am I too young for life insurance?

Life insurance is generally regarded as something that you don’t really worry about until your retirement age. There is some truth to that, but the fact is that it has nothing to do with your biological age. Rather, retirement is usually the age people are at when they have something worth protecting with life insurance, and the means to invest in a good policy. We are not trying to say that the people in West Bloomfield, MI should wait to call Phil Klein Insurance Group for life insurance, and it should have nothing to do with how many gray hairs you have on your head, but more to do with who you’re trying to support when you are gone.

If you have dependents, a wife, children, or family members that you look after, then life insurance will ensure that they are taken care of should something happen to you. That’s all life insurance is about. It has nothing to do with physical age.

This applies to many people who are fairly young. If you already have a family in your twenties and you want to make sure that they are provided for, life insurance can help. In fact, it may be wiser to invest while your children are young. When they’re able to get jobs of their own, they might not need the support. Life insurance can also help to cover funeral expenses and education. So, keep all these factors in mind.

It is up to you to take the responsibility of researching and reaching out to a trusted agency like Phil Klein Insurance Group. Life insurance can protect you from unforeseen financial troubles in the future. Contact our agency to speak with a representative and to get a quote.

How To Avoid Six Situations That Can Destroy A Business

1. “I KNOW WHAT MY BUSINESS IS WORTH”
•Have you ever had your company value appraised by an outside resource?
•Has that appraisal been done within the last three years?
•Do you have a Buy/Sell agreement? •Is it funded?
•Has it been reviewed within the last three years?
•Do you know where your Buy/Sell agreement is kept?

2. “I’M TOO BUSY RUNNING THE COMPANY”
•Do you have a will? •A trust?
•Is it up to date?
•Do you have a plan to retain key employees if something happens to?
•Has your Trust & Estate Plan been reviewed in the last three years?
•Have you identified and written down your trusted advisors?

3. “THAT’LL NEVER HAPPEN TO ME”
•Do you have a succession plan in place?
•Have you involved both key employees and family members in your succession planning?
•Does your succession plan have a provision for disability?
•Have you identified or written down who you want to run the company?
•Do you have disability buy-sell overhead expense coverage?

4. “THERE’S PLENTY OF TIME FOR THAT”
•Do you know when you want to retire? •How much income will you need?
•Do you want to be running the company full-time, five years from today?
•Do you know how much control in the business you must maintain in order to secure your retirement income?
•Have you explored financing opportunities for key employees to buy the company in the future?

5. “MY BUSINESS IS MY RETIREMENT”
•Do you have a retirement vehicle other than your business?
•Is 25% or less of your business assets a part of your retirement plan?
•Will your retirement funding come from more than four sources?
•Have you had your retirement income projected/analyzed to identify shortfalls?
•In the past year, have you spent more than one hour planning for retirement?

6. “YOU CAN’T BEAT UNCLE SAM”
•Do you have a TEAM of financial advisors working with you?
•Are you proactively planning to deal with changes in the tax laws?
•Will any sources of your retirement income be received tax free?

Questions? Concerns? Call Owen Rosen at (248) 682-7445 today or email owen@philkleininsurance.com

How Commercial Insurance Can Protect from Legal Costs in West Bloomfield, MI

If someone is hurt, injured, or experiences property damage while in your business, you could be financially responsible. The same goes for any issues involved while you perform work outside the business location. You worked hard to build your business, don’t let one court case threaten your assets. Business liability insurance is the answer, and your Phil Klein Insurance Group agent can help ensure your West Bloomfield, MI business has the right coverage. Meanwhile, here’s some basic information about a commercial policy.

How Does it Work?

Liability insurance protects you if someone sues your business. Make sure your coverage is enough to cover the risk for your particular type of business. If you are performing a business service, such as drywalling someone’s home, and you accidentally damage expensive flooring, your business insurance pays for the damages provided it’s an insured event.

Business liability covers legal and court costs, as well as judgments found against you. Protect yourself and your customers from liability and accidents that could occur at any time.

Other Business Insurance

You can also get coverage specific to the risks associated with your type of business. Every business can benefit from insurance for property damage, medical costs, bodily injury, and other insurance coverage like loss due to bodily injury, defending attorneys, property damage, libel, slander, and others. 

What Coverage is Right for You?

If you manufacture, distribute, or retail a product, consider product liability for protection against a defective product that causes bodily harm. CPAs and doctors need professional liability insurance to cover errors and omissions that arise in the normal course of business. If you have a steady stream of customers, you have a successful business, but that means you need to have adequate coverage against injuries and property damages that occur during business.

Contact your Phil Klein Insurance Group agent in West Bloomfield, MI today to set up an appointment for a quote on commercial coverage and other insurance policies today.

 

 

Is Your Employer-Provided Life Insurance Coverage Enough?

Is the life insurance you’re getting through your employer enough to take care of your family? And are you paying too much for that coverage? A healthy 50-year-old male could save nearly 80% on premiums in the first year alone by switching from an employer-provided term life insurance policy to an individual one, according to the National Association of Financial Planners.  Young, healthy employees might also be better off with individual coverage, since they can lock in low rates for decades.

But many companies pay for some amount of life insurance for their workers; they also allow workers to purchase more coverage for themselves and their spouses at a low cost and with no medical exam. As a result, many families obtain all of their life insurance through an employer. If you make $75,000 per year, your employer might provide $75,000 or $150,000 in coverage at little or no out-of-pocket cost to you, and the premiums will come straight out of your paycheck. This way, you’ll never miss the money or worry about paying the bill. And even if you’ve had less-than-perfect health, you’ll qualify for just as much coverage as your co-workers. That all sounds enticing, but there are several potential problems with obtaining life insurance through work.

Problem 1: Your Employer May Not Offer Enough Life Insurance

While basic employer-provided life insurance is low-cost or free, and you may be able to buy additional coverage at low rates, your policy’s face value still may not be high enough. If your premature death would be a financial burden to your spouse and/or children, you probably need coverage worth five to eight times your annual salary. Some experts even recommend getting coverage worth 10 to 12 times your annual salary.  PKIG can help determine how much you need based on your goals.

Another shortcoming?  Salary doesn’t take into account bonuses, commissions, other sources of income, and the value of other benefits such as medical insurance and retirement contributions.

Your employer’s group life insurance might be sufficient if you’re single or if you have a spouse who isn’t dependent on your income to cover household expenses and you don’t have children. But if you’re in this situation, you might not need life insurance at all.

Problem 2: You’ll Lose Your Coverage If Your Job Situation Changes

As with health insurance, you don’t want gaps in your life insurance coverage because you never know when you might need it. Most workers who get coverage through work don’t know where their life insurance will come from if they change jobs, are laid off, their employer goes out of business or they switch from full-time to part-time status. You usually won’t be able to keep your policy in these scenarios. Lack of portability can be a problem if you aren’t going directly to another job with similar coverage and aren’t healthy enough to qualify for an individual policy. Some policies do allow you to convert your group policy to an individual one, but it will likely become much more expensive.  If you’re losing your coverage because you were laid off, the premiums might be unaffordable.

Problem 3: Coverage Gets Tricky If Your Health Declines

Another problem arises if you’re leaving your job because of a health problem.  If a medical condition forces you to leave your job, it’s unlikely that you would be able to qualify for life insurance at that time.  Needless to say, that’s the time your family would need the coverage most.

Even if your health problems aren’t significant enough to stop you from working, they might limit your employment options if you only have life insurance through work.

Problem 4: Your Plan Doesn’t Provide Enough Coverage for Your Spouse

While your employer’s benefits package probably provides health insurance for your spouse, it won’t always provide life insurance for him or her. If it does, the coverage may be minimal—$100,000 is a common amount, and that doesn’t go far when you lose your husband or wife unexpectedly.

Couples often assume the family will only suffer economic hardship if the primary breadwinner dies and many workers fail to adequately insure their spouses.  The death of a non-working or lower-earning spouse can certainly impact their partner’s income.  You probably aren’t going back to work on Monday if you lose your spouse over the weekend.  How much paid time off do you have to cover an extended leave?  Plus, you must now pick up the slack with day care or carpooling – hours can be cut back – there won’t be enough time to properly grieve and survivors are often depressed which lowers productivity.

Problem 5: Employer-Provided Life Insurance May Not Be Your Cheapest Option

Even if you can get all the life insurance you need for both you and your spouse through your employer, it’s a good idea to shop around to see if your employer’s supplemental insurance really offers the best value for the money.  You’re more likely to find a better rate elsewhere the younger and healthier you are. Also, unlike the guaranteed level-premium life insurance you can purchase individually, which costs you the same amount every year for as long as you have the policy, the policy provided by your employer tends to get more expensive as you age.

Employer provided coverage tends to increase in price after age 35 and typically increases every year or five years.  Once you reach age 50 the policy can often become much more expensive and usually unaffordable closer to retirement age.

The Solution

While there’s no reason not to take advantage of any free or inexpensive insurance your employer offers, it probably shouldn’t be your only source of life insurance, nor should most people rely heavily on the supplemental life insurance they can get through work. The solution to each of the problems described above is to purchase some or all of your life insurance directly through an individual term policy.  You might need to purchase as much as 80% of your life insurance on your own to have enough and to make sure you’re covered at all times and under all circumstances.

If you don’t think you qualify for individual life insurance, it’s important to actually find out.  Underwriting standards have changed considerably over the past ten years or so.  Also, if you work with an Independent Agency like PKIG your chances of approval will be dramatically higher.  Captive insurers such as State Farm or Allstate typically have much stricter underwriting standards which lead to higher premiums and more frequent declinations on average.  The most affordable solution is to buy the most insurance you can afford at the youngest age, since, as you age, the chance of acquiring an illness goes up, and with illness comes more expensive premiums, if you can qualify at all.

The Bottom Line

You need enough life insurance to cover all your debts and support your dependents. “Enough” includes paying off your credit cards, car loans and mortgage, paying for your children’s education, and making sure your spouse will have the financial means to take care of him or herself and your children. In a time of grief, the last thing you want is to leave your loved ones with another major life upheaval such as having to change jobs or schools because of financial strain, so take a close look at whether the life insurance you’re getting through work is the best way to provide for your loved ones.

Get instant quotes on top-rated life insurance coverage here in less than 30 seconds or call (248) 682-7445 for more information today.