Lester-Greene & McCord Insurance

Life Insurance & Annuities

Life insurance is a unique asset because of its high yield potential and its tax-favorable benefits, which can be used to solve some of life’s unexpected financial problems.

Life Insurance Purposes:
· create an estate
· pay death taxes and estate settlement costs
· create a retirement fund
· pay off the home mortgage
· college fund for children and grandchildren
· equalize inheritances
· replace charitable gift
· fund a business transfer
· protect a business from the loss of a key employee
· pay off loans

Tax-deferred Annuities allow for a higher effective investment return by accumulating income on a tax-deferred basis. Income tax on the investment growth is delayed until the money is withdrawn from the contract.

An annuity is a contract between an insurance company and individual investor. These type of contracts can either be set up by a single investment or with a series of investments.

Medical Insurance

Group Health Insurance is necessary to attract and keep good employees. While employers may not like the cost of group health, they should be aware of the benefits to the company and overall morale. There may be things you as an employer can do to alleviate some of this costly pain. Also, all Group Health companies and insurance agents that offer them are not created equal.

The cost of this health insurance versus the need for solid employees should be weighed. There a perception that many in this country that employees will take a cut in pay if they were to be guaranteed a group health plan. There is a simple explanation for this reasoning. People know they will have to go the doctor. Women need to have mammograms and pap smears, the children need their shots and physicals, and men need their prostrate examined, people realize these services cost money. Employees often would prefer that you take money out their check for group health then for them to write a check each month for it.
It is the job of to keep your group health cost to a minimum. If you already have a group health plan, you can raise the deductible to discourage overuse of coverage by your employees. However a dramatic raising of group health deductible or co-payment may cause some rumbling among your employees. Yet it is t is a good idea to start with a lower deductible, so you can absorb rate increases. (Your group health rates will go up) Also know beforehand what networks are in your area, and what health networks most of your employees' doctors belong to.

It is very important to review and understand your group health quotes that you will receive. Any insurance agent or broker that provides you with initial group health quotes over the phone, without having your employees fill out any applications, is doing you a disservice. Unless the agent is the Great Houdini, no one in our field can give you a firm, group health quote without a thorough underwriting. Group Health Insurance is too complicated to be taken this casual. Remember, look for an agent that gets to know your particular situation, understand your needs, and has the group health benefits that meet your expectations. Call or come by and let Lester, Greene and McCord help answer your questions.

Disability Insurance

Disability Insurance protects your income. It provides income to you when the injury or sickness you obtain, does not arise out of work. Disability Insurance may come in the form of a group or individual policy.
The role of a disability policy, whether individual or group, protects a certain amount of the employees' salary. The insured may collect a portion of their salary once they become ill or injured, as long as their elimination period has been sufficed. Once the individual is able to return the work full time the benefits will end completely in all likelihood. It should be noted that injuries or sickness arising out of the job are protected by Workers Compensation.

The stereotypical model for a person labeled as disabled is someone in a wheelchair. However sickness can be just as debilitating as injuries from an auto accident. Some people are unaware that disability claims can include sickness, but they can.

There are two types of disability policies, short and long-term. Short-term policies last less than two years, while long-trm can last to age 65 or older. Both serve their purpose but be aware of the difference.

Group Disability Insurance is often the only way for employees to qualify or pay for disability insurance. The medical history of some employees may cause them to be turned down for an individual policy. Yet depending on the size of the company for Group Disability Insurance, simplified or little underwriting may occur. While others may be stretched to the limit with other debt or bills to pay for another policy.
An Individual policy is written based on occupation, salary, and elimination period. In both individual and group policies, each individual can qualify for a certain amount of benefit based on their salary. Their occupation will influence the price of weekly or monthly benefit. The elimination period tells you how long you must wait before benefits can begin.
The reason to have to have disability insurance is protect your salary from accident or sickness. While individual may purchase this policy, employees may have Group Disability Insurance at work. Remember that you risk your own earning power without proper coverage.