Boca Insurance Agency Service:
The Boca insurance agency is providing the best and remarkable services in town. Many people think that it is not important to invest in insurance whether it’s life insurance or any other type of insurance. We understand life can get expensive quickly. And every one of us shares the responsibility to plan for and protect the ones we care about most. With the right financial products, that care shouldn’t change whether you’re there or not.
Boca insurance Agency provide benefits to your family:
1). Boca Insurance Agency Provides Fund College Tuition:
You worked hard to help your children succeed, so your financial plans shouldn’t get in the way of their future goals. Consider the possibility of dedicating part of your life insurance benefit to their college tuition. With permanent life insurance, your policy has the potential to accumulate cash value on a tax-deferred basis. Those funds can then be accessed generally tax-free1, during your lifetime to help shoulder the cost of college.
2). Boca Insurance Agency Protecting Your Business:
Business owners should consider the future of their business when shaping their life insurance policy. It’s usually best to keep loved ones who are not involved in the business from having to take on the responsibility of managing the day-to-day operations. An insurance death benefit can fund a buy-sell agreement to protect the business from an undesirable sale, and it also ensures that the business will continue to run as intended.
3). Boca Insurance Agency Save For Retirement:
Married couples may have built a retirement plan around combined financial contribution. A life insurance benefit can be used to help replace future contributions of the one who has passed. The remaining spouse can then use excess cash to maximize annual contributions to their workplace plans or contributions to an IRA.
4). Boca Insurance Agency Unforeseen Bills:
After you pass away, your loved ones may encounter some unexpected costs. For example, the death of a stay-at-home parent may mean additional child care, meal and other household costs and responsibilities. The payout from a life insurance policy can be used to cover or defray these costs, to help maintain your family’s quality of life and to care for them as well as you do now.
In some instances, without proper planning, retirement savings could be depleted just to pay estate taxes. A life insurance plan’s death benefit is usually paid income-tax-free and can be structured so that it’s not subject to estate taxes.
There arealso different ways to structure your life insurance policy as a supplemental source of tax-advantaged funds to use for any purpose, should someone develop a permanent or chronic illness.
5). Boca Insurance Agency Pay Off Debts:
Eliminating debts can help relieve the financial burden loved ones face, especially when losing a significant other. In addition to the money they owe, they may also have to pay off any debts you’ve left behind. If they served as a co-signer on a loan or jointly held debts, then they may become responsible for those as well. Check the laws of your state to see what your obligations may be.
Although nothing can ever replace the care you offer your loved ones, providing them with access to life insurance benefits is a simple yet extraordinary way to ease financial worries. Boca insurance agency lets its client get their services at best so that they can also feel secure about their future.
6). Boca Insurance Agency Plan:
If a partner or key person in your business died tomorrow, what would you do? Business owners who don’t have business life insurance usually stumble over this question. It’s certainly upsetting to think about one of your closest colleagues dying. However, it’s also upsetting to picture the grief being compounded by your business going under. Money aside, life insurance forces you to create a plan of action for a situation you are otherwise likely to avoid visualizing. And trust us, once you get into applying for life insurance, the discomfort lifts and you become focused on securing the coverage you need.
7). Boca Insurance Agency Protection:
This is a given, but let’s talk about the different ways life insurance provides protection specifically for businesses.
Cross Purchase Agreement
A cross-purchase plan is a type of buy-sell agreement in which each business owner or partner buys a life insurance policy on the other partners. Each policy’s face amount (the money that is paid out if the insured dies) is equal to the insured owner’s share of the net worth of the business. Aside from protecting the business as a whole and each of the owners, avoiding taxes are another one of the benefits of this type of buy-sell agreement. With a cross-purchase agreement, the family of the deceased owner will receive an amount equal to their loved one’s fair market value of the business, tax-free, at the time of death.
Cross-purchase agreements are ideal for businesses with two or sometimes three owners. More than three owners and the paperwork begins to pile up, because each owner must buy a policy on each of the other owners in order for the buy-sell agreement to be completed. For example, a company with five owners would require 20 life insurance policies:
1). Owner 1 would need to buy a policy on owners 2, 3, 4, and 5.
2). Owner 2 would need to buy a policy on owners 1, 3, 4, and 5.
3). Owner 3 would need to buy a policy on owners 1, 2, 4, and 5.
4). Owner 4 would need to buy a policy on owners 1, 2, 3, and 5.
5). Owner 5 would need to buy a policy on owners 1, 2, 3, and 4.
Boca Insurance Agency Stock Redemption Plan:
To avoid having to put together a large number of life insurance applications, businesses with three or more owners can create what’s called a stock redemption plan. In a stock redemption plan, partners or stockholders buy life insurance equal to the respective shares of the other stockholders.
If a stockholder dies, the death benefit is used by the surviving stockholders to “buy out” the shares belonging to the deceased person’s heir(s) at an agreed upon price. The deceased owner’s heir(s) receive immediate liquidity at fair market value for their business interest.
This prevents the business from having to sell off or liquidate assets to raise the money needed to pay off the deceased owner’s share of the business to their surviving family members. The deceased owner’s family also avoids paying taxes on the money that is left behind for them because life insurance settlements are typically paid as a tax-free lump sum.
Boca Insurance Agency Key Person Policy:
Every company in every industry has its “key personnel” outside of the owners—from senior executives to top salespeople to tenured clerical workers. Key person life insurance provides a buffer for the business income loss caused by the sudden death of an employee with specialized skills.
For example, when a real estate agency loses a longtime associate broker, that person’s book of business will likely dissipate. Key person life insurance helps to negate the agency’s lost revenue that the broker was bringing in before they died.
How much is life insurance needed on a key employee? This is a difficult question with no “one-number-fits-all” answer. Most life insurance companies will approve up to 5-10 times a key employee’s annual salary, including bonuses. Some will go up to 15 times the annual salary. If the key employee is responsible for generating income for the business, life insurance companies will allow you to ensure the business’s future profits. Most life insurance companies will approve up to 3 times the business’s annual gross profit or 5 times the business’s annual net profit.
As is the case with any life insurance policy, age and health are also factors. Insurance companies will also want to know the nature of the business when the company was started, the net worth of the company, if the key person is an owner of the business, and if all key people will be insured.
If a key employee dies, the direct financial impacts are only the beginning of your challenges. Key person life insurance literally buys you time to interview potential replacements, onboard a new hire, and train them to fill the void. Finding a suitable replacement for a key employee can take some time, and getting them up to speed with the business can take even longer.
Without the influx of cash that life insurance provides, trying to replace an employee who has died unexpectedly can cause you to make a bad hire out of anxiety. Most businesses lose profit and customers when a key employee passes away. Key person life insurance can replace your business’s lost earnings for up to 5 years allowing your business to stay afloat while your executive’s take the time needed to hire the right candidate.
If you’re looking for funding to start or grow your business, life insurance is often a requirement to qualify for an SBA (U.S. Small Business Administration) loan. Life insurance policies purchased for SBA loans must be for the full amount of the SBA loan, with your lender named as primary beneficiary. This is essentially the SBA’s way of insuring their loans, so they don’t lose money when a borrower dies before they are able to pay off the loan. It also doubles as a form of protection for an entrepreneur’s loved ones so that their family does not have to shoulder their business debts if the entrepreneur dies.
In addition to securing funding for a start-up business, the death benefits from a key person life insurance policy can also be used to pay down existing business debts or to fund future executive compensation plans, there are no restrictions on how the money can be utilized by the business. If your business needs funding to get started or grow, key person life insurance can also help you secure and attract investors.
Commercial lenders view key person policies as an asset improving the overall credit of a business. Some businesses are forced to shut down when a key employee passes away. Having life insurance in place provides potential investors with confidence because your business will have the funds needed to repay any outstanding loans in the event of an unexpected loss.
3). Peace of Mind
All of the above add up to priceless peace of mind knowing your business is prepared for a worst-case scenario. You’ve put in a lot of time and energy to build your business. Why leave your business or your business owner’s families vulnerable to the impacts of an unexpected death within the company?
Reason why Boca Insurance Agency insurance is important:
There are a lot of people in this world who thinks that insurance in not necessary at all and it goes all in vain but it is not true. There are a lot of benefits which one can get by taking insurance from Boca Insurance agency.
1). Boca Insurance Agency Keeps Commerce Moving
In the days after the 9/11 attacks, there were many worries about insurance coverage. Acts of war are not covered by insurance. Was terrorism an act of war? The big question was, How would the 9/11 attacks be classified? Fortunately, the insurance industry decided the attacks were not an act of war.
However, after 9/11, some insurers began excluding terrorism. But the federal government stepped in and required coverage in the name of keeping commerce moving. In this case, insurance likely prevented many businesses from avoiding terrorist-targeted operations, such as refineries and chemical haulers.
2). Lenders Require Insurance:
This reason is tied to No. 1. Lenders require that you have insurance. Think about it: Mortgage lenders want proof of insurance before you buy or build a new building. In short, to get the money your business needs to keep going, it’s likely you enjoy the benefits of insurance. Without insurance, your winning business model can’t get the funding it needs to take its first step, or your established business model can’t get the funding to evolve and better compete.
3). Boca Insurance Agency Insurance is Compulsory in Some States
Insurance is important because sometimes it’s the law! A great example of this is auto insurance. Auto insurance is compulsory in Wisconsin (home of HNI HQ). Auto insurance helps mitigate the risk of life on the road (of which there are many!). Workers’ compensation is a form of compulsory insurance that’s required in most states.
4). Boca Insurance Agency Grants Peace of Mind
Insurance, an intangible, provides another intangible: peace of mind. Business owners can take on certain business ventures because they can shift the risk —thanks to insurance. This reason is the counterpart to No. 2 — lenders require insurance. Insurance is the required (by lenders) safety net that lets entrepreneurs explore the opportunity.
5). Boca Insurance Agency Ensures Family and Business Stability
Boca insurance agency is a safety net for when risks go wrong. Life insurance can support the life of a family, should a member be lost. It’s similar for a business. Should a key member or piece of equipment go out of commission, the business can carry on, thanks to insurance. This reason why insurance is important dovetails nicely with peace of mind (No. 4). It all goes back to the idea that insurance, when activated, makes policyholders whole again.
6).Boca Insurance Agency Protects the Small Guys
When you look at your industry, you see the “big guys” and the “small guys.” If a risk goes wrong, the big guys will be able to survive. They can take a hit. But the little guys can’t take a hit. As a result, they are more risk-averse, and in some cases, they sell out to the big guys. If enough little guys leave the industry (and one big guy swallows them up), you’re left with a monopoly. With insurance, however, the little guys have support if they want to take a risk, which means they stick around longer. What it comes down to is that insurance helps prevent monopolies from forming.
7). Boca Insurance Agency is the Right Thing to Do
A sobering example of insurance in action is the West Fertilizer Co. explosion in Texas this spring. The explosion did $100 million in damage to the community, including schools and hospitals. The fertilizer company had only $1 million in general liability coverage.
Now the city is suing West Fertilizer and likely will win all of the company’s remaining property and assets that were not damaged by the disaster. This is because the fertilizer company did not have enough insurance. What’s more is the city also is suing the suppliers to the fertilizer plant, claiming they knew they were supplying inherently dangerous materials. In the case of the West, Texas, plant explosion, insurance could have helped a community to recover after a crisis.
Insurance is something many business owners don’t want to think about. But whether they think about insurance, with hope it’s there, allowing for transfer of risk and providing a safety net for new opportunities.
Mistakes which insurance agencies used to make:
The financial services industry offers amazing career opportunities for those who take advantage. This is especially true for insurance agents and producers. Sadly, the insurance industry seems to be starving for new talent.
1). You view it as a job, not a career.
Is insurance a job for you, or is it a career? The real difference lies in your attitude. If you want a career, you will have long-term goals and a plan to achieve them. If you want a job, you will be in it to earn a little money. If it’s a career, you are using it as a tool to give your family a dream home, travel the world, build a classic car collection, or whatever your “why” is. If it’s a job, you are just using it to “pay those lousy bills”.Nobody gets up in the morning excited and passionate about “paying those lousy bills”. There’s just no spark, no fire, and no motivation behind a job. If there is, it’s rare. Without this drive, you will have a hard time getting through the rejection and inevitable difficulties that come with building a business. I want to share with you an idea that has truly changed my life. It’s the idea that building a business is like moving a stopped train. It takes a tremendous amount of energy to put the train into motion, but once it starts moving it accelerates with relative ease. Ask yourself: are you willing, truly willing, to put the time and energy in to get the train moving?
2). You have an income requirement that is initially unattainable.
Just to be clear, I do NOT mean setting low goals so you won’t be disappointed. I think you should set big goals, but at the same time, understand the realities of the paths that take you to your goals.
It’s common for an insurance agent’s first years to be the leanest of his/her career. But some people get in the business and only get told about top producers, so they set sky-high expectations. This isn’t entirely their fault – managers and recruiters emphasize the glamorous parts of insurance, like independence and income, to attract candidates.
New agents see veteran agent Bill making $300,000 per year and assume that they can at least make $100,000 or more in their first year. What they don’t see are the long years of hard work and prospecting that went into Bill’s lucrative client list. When they struggle to get their high-income expectations, they leave.
3). Intimidated by being undercut.
If you are too intimidated to sell in the face of being undercut on price, you won’t last long. I promise you that you will never win all of the price battles you’ll face against other companies. Endless price cutting only serves to devalue the agents, the agencies, and the industry as a whole. It is nothing but a race to the bottom.
You must learn that price isn’t everything – the relationship is. Make sure that your clients appreciate the VALUE of their insurance, not the PRICE. The value you give your clients should always be more than the premium total.
4). Don’t have a solid support system.
While it may be sad, it doesn’t change the fact that it’s true. Some people won’t make it in insurance (or any business, really) because they don’t have a good support system at home. The most common one I’ve seen is a lack of spousal support. In a commission-based role, there is often a delay in receiving the financial rewards for your hard work. When finances are tight, money fights can occur and they impact everything else.
Sometimes the lack of spousal support masks other underlying issues. Take a good look to see if you have different values, expectations, or goals. You might assume that something is perfectly fine while your spouse expects something completely different. In any case, communication is critical, and you should seek ways to support each other in achieving all of your goals.