Memo to myself I need Keyman Insurance

Last month I had to drive down to London. I don't like driving at the best of times but the rain, spray and heavy traffic on the M1 made conditions difficult. Radio 2 kept me company and the heater kept me warm. Then I hit that queue - six miles solid and I was soon an hour behind schedule.

They were still clearing up the accident when I got there. It was nasty. A lorry and what was left of two cars. Made me think, after all that could have been me. Yep, my life insurance is up to date and my Will was renewed only last month. The family would be well cared for and the mortgage repaid. Had I missed anything?

The business. What would happen to that? We have two directors, 7 employees, an overdraft and lots of insurance. Public Liability, professional indemnity, vehicles and stock are all insured. We even have legal protection insurance. Had I missed anything? I got to thinking.

Thank goodness it wasn't George in that accident. A great guy and he's been with us five years. He's our top salesman. There again what if it had been my co-director who also owns 50% of the business? What would be the repercussions on the business?

Sales down, profits down, bank phoning all too politely to ask about the Directors guarantee on the overdraft. Then I'd have to try and buy his shares. I wouldn't want someone else to get hold of those. At some stage I'd have to recruit someone of his calibre to continue the company going forward - that wouldn't be easy! And recruiting top people doesn't come cheap. That's more time and more money. The personal problems the repercussions .. the extra work the extra stress ..

Oh heck, I don't want to think about it all. Quickly, switch over to Radio 1 .

Does all this ring alarm bells with you? 95.2% of UK businesses employ less than 10 people and these are precisely the organisations most at risk from the impact of severe illness or death of a key person. The risks of a key person being stuck down with a long term illness or death are real. 1 in 5 men suffer a critical illness before their normal retirement age. Then there's the M1. The fact that it hasn't happened so far might just mean your business has just been lucky.

Now to those actuarial boffins in insurance companies, risk and luck are flip sides of the same coin. And they can provide insurance cover for most risks. After all they too want to increase sales. But they're scratching their heads about Keyman Insurance. Most of Britain's 4.1million small businesses should have it but few do. What can it do? It can be structured to:

Provide an income stream to the company whilst the key person is incapacitated (compensation for the lost contribution from the Keyman)

Provide a lump sum to the business in the event of death (pay off the overdraft or simply bolster cash flow?)

Provide money for remaining shareholders to buy the shares from the original shareholder or their estate

You'll need to talk to a Financial Adviser about these issues but they are all insurable. Can your business afford to take a risk it doesn't need to?

Memo to myself get Keyman Insurance!

While life is populated by choices, one certainty that faces the majority of adults is that they can control their future options only by planning ahead. Financial planners recommend diversifying interests to insure profit. Real estate planners bank on the idea that real estate matures over time and is a solid investment.

Life insurance promises a financial cushion for bereaved family members so they wont have to worry about things such as house payments or accrued debt. Long term care planning focuses on the growing need for assisted care as the nations baby boomers near retirement age and individuals are living longer and longer lives.

Who benefits from the leads on long-term care?

Long Term Care FacilitiesIndividualsInsurance PlannersFamilies

Long-term care is provided for individuals who need special assistance, but do not want to be a burden on their families. Why leave important decisions and financial burdens until the last minute? By planning ahead, adults can guarantee that their needs will be met in a manner that they choose and pay for.

For example, with life spans reaching 90 to 100 years old on average, a retiree with declining healthy may have to rely on family alone to support them if their health takes an ill turn or they are injured. Long term care planning puts those decisions and options into the hands of the people who will need them.

A 55 year-old man or woman is an excellent prospect for long-term care because they have the time and wherewithal to make the decisions now that will benefit them 30 years down the road.

What makes long-term leads a viable option in todays market?

The target market of long-term care leads are far more likely to discard direct mail advertisements about planning ahead versus answering their own curiosity or searching out potential services on their own. Since the prospects provided by a lead service are already contemplating their options, its a much smaller leap for the agent to make in helping them achieve their plans.

Lets face it, planning for a nebulous time of infirmity and ill health in the future is not a pleasant topic. Longer life span means that robust adults will not see a decline in their health until their years are much further advanced. They are less likely to take into consideration needs like debilitating disease or chronic conditions. Direct marketing techniques that pursue these avenues will likely outspend their return value.

A lead service can cut down on the overhead and output of marketing dollars while providing a more sustainable list of prospective clients. By cashing in on the prospects that are already aware they need some plan or formula in place, the agents work is halved with better odds at providing returns.

How can long-term care leads help everyone involved?

Yes, long-term care leads will help agents close more sales and thereby increase their profits. However, the concept behind long-term care leads will also provide excellent service to the target market. The information age is overripe with available material. Websites that detail the finest of small prints and where one resource can sound very much like another are a turnoff for a lot of prospective clients.

A lead service helps them to cut through the tape by acquiring their contact information and interests. That information and specific points of interest are then distributed to the right agents and contacts that can help them find what they are looking for. Ultimately, long-term care leads are a win-win-win situation for the agent, the client and the clients family.

Homeowners insurance protects the homeowner from financial losses against theft, storms, fire, flood and all other causes explained in your policy. Read your policy carefully to understand your coverages. Reading policy is not enough you should also know about your rights. All states have renters insurance and consumer bill of rights to help you in case you file a claim against home insurance company. Your home insurance company should send you bill of rights with policy.

Dont wait until you have a claim to review your policy and to know your rights.

Here are some reasons why you should get a homeowner insurance.

You are recommended to buy a Homeowners Insurance, which covers five or six coverages rather than specific policy for specific coverage. Buying separate policies will cost you much.

Homeowners policy include five coverages.

Dwelling coverage: This coverage of homeowners policy will pay you in case of damage to your outstanding building like garage or storage sheds and your home.

Personal property coverage: It will pay when your household items like furniture, television, freeze or clothing are stolen, damaged or destroyed.

Liability coverage: It protects you in case you are responsible for someone elses injury or property damage. In such cases homeowners insurance will soon provide you with a minimum of 20,000 USD as coverage. Policyholders can buy an extra premium of $1 million.

Medical payments coverage: It pays all medical bills if someone gets injured even in the premises of your property. Medical coverage also covers certain injuries such as your dog biting someone in your house. You can get a basic coverage of $500. This can be increased upto$5000 by paying extra charges.

Loss of use If your house is damaged due to any reason and you have no where to live, in such condition your living expenses will be paid by the homeowners policy.

Thus you can make your home and your life secure with Homeowners insurance policy.