What impact will Insurtech have on the future of insurance?

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What is Insurtech?

Insurtech is a term used to describe the intersection of insurance and technology. It’s a rapidly growing industry that is using technology to create new ways to assess and manage risk. Insurtech companies are challenging traditional insurers with more innovative products and services.

The Insurtech industry is still in its early stages, but it is already having a disruptive effect on the insurance sector. Insurtech startups are using technology to solve some of the biggest challenges in the insurance industry, including fraud, claims processing, and customer engagement.

Insurtech is also driving innovation in the way that risks are assessed and priced. For example, Insurtech companies are using data analytics to better understand customer behavior and develop new pricing models that are fairer and more transparent.

The future of insurance will be shaped by Insurtech. The industry is already undergoing a period of significant change, and this is only set to continue as Insurtech companies continue to grow and mature. We can expect to see more innovation, more competition, and more choice for customers as the Insurtech industry continues to evolve.

What is the Medical Information Bureau (MIB), and what it means to you.

The MIB, or Medical Information Bureau, is a non-profit organization that collects and stores health information on behalf of its member insurance companies. MIB's records are used by insurance companies to help them assess an applicant's risk when determining whether to offer coverage, and at what premium. MIB members agree to share information in MIB's files, which helps to prevent insureds from fraudulently concealing their true health status when applying for life or health insurance.

While the MIB does not have access to your complete medical records, they may have information about previous medical conditions that you have been treated for, or that were discovered during a medical exam required for a life or health insurance policy. If you apply for life or health insurance and the insurer requests your MIB file as part of their underwriting process, you have the right to request a copy of your file from MIB. You also have the right to dispute any inaccurate information in your file. For more information about MIB and your rights, please visit their website at www.mib.com.

Funding Buy-Sell Agreements with Life Insurance

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We understand the complexities of buy-sell insurance policies and we are here to help you protect your business, your assets and your family. One of the main concerns business owners have is what will happen if one of the owners passes away, how it will affect the business, the other owners, and the heirs.

In addition, surviving owners want to ensure continuity of ownership and avoid having a large stake fall into the hands of inexperienced heirs. They also want to protect their personal assets and the company's financial well-being.

Furthermore, owners want to make sure their families are financially secure and are fairly compensated in case of their death.

All of these concerns can be addressed with a buy-sell agreement. This is a contract between business owners that, upon the death of one of the owners, requires the remaining owners or the company itself to purchase the deceased's interest in the business according to the agreement. A deceased individual's heirs are also required to comply by selling the inherited interest at the previously agreed price.

FUNDING THE BUY-SELL AGREEMENT

There are a variety of options for funding a buy-sell agreement, but some are more risky than others. Owners may choose to save money and pay cash now or to take out a loan against the company's assets to purchase the shares of a deceased owner. Financially, both scenarios can pose a risk, both to the surviving owners and to the company itself.

Life insurance is the smartest way to fund buy-sell agreements. As a result, funds are available immediately when a death occurs, and the death benefit proceeds are generally tax-free. Also, the funds used to purchase the deceased's share are purchased for pennies on the dollar, and the premiums will likely be significantly less than the interest paid on the loan.

Types of buy-sell life insurance options include the following:

Entity Purchase Plan: With this type of agreement, also known as a stock redemption plan, the company purchases life insurance policies on each owner and names itself as the beneficiary. In the event of a business owner's death, the company is entitled to the proceeds of his or her life insurance policy and uses said proceeds to purchase the deceased's business interest, while the heirs are entitled to an agreed-upon payment for their interest in the business.

Cross Purchase Plans: An agreement between the owners is the basis of this type of plan. Every owner purchases a life insurance policy on the other owners, in which they will be named the beneficiaries. Each surviving owner receives income tax-free life insurance proceeds and uses those proceeds to purchase the deceased's business interests, while the heirs receive an agreed-upon payment for their ownership interest also.

As you see, there is a lot that can go into the proper succession plan of a business and there are various ways to plan for it. If you have further questions about how these life insurance plans work, please feel free to call or message us today.

Four Simple Steps to Buying Life Insurance

Four Simple Steps to Buying Life Insurance.

It can seem difficult at first, but it can actually be an easy process if you follow these simple steps.

Step 1: Find yourself a trusted life insurance broker. A broker can find you the best policy and best pricing on the market. Since the broker has access to a multitude of companies, instead of just one, it gives you the best chance at finding the best product for your needs.

Step 2: A trusted life insurance agent will do a fact finder to narrow down what your exact needs are. They will explain to you how the different types of life insurance products work, so you are better educated to make the proper decision. After verifying your needs, the agent will make a professional recommendation. They will help you determine which product makes most sense to you. With life insurance, there are two basic types of insurance policies to choose from, and your agent should be able to explain how they work for you in detail. Choosing the proper insurance product is a team effort between you and your agent.

Step 3: Be sure your agent chooses for you a reputable company. The insurance company you choose should have been in business for many years, be financially stable and have strong ratings.

Step 4: Choose how you want to buy. There are many safe ways to buy a life insurance policy especially during this time of Covid-19. Your agent should give you the option to either meet in person (if possible), do the appointment by phone, or do a video meeting online i.e. Zoom. More and more of these meetings are moving to video platforms for the safety and convenience of all parties.

Buying life insurance can be a simple choice with lasting value. Don’t leave your family or your business unprotected, make the decision that can help keep them covered today.

Do You Have Trusted Advisors On Your Team?

Every business owner needs a team of trusted advisors.

If you’re a business owner, you are used to wearing a lot of hats. Still, you can’t be an expert at everything, which is why it’s important to build a network of trusted professionals that you can turn to for help whenever the need arises.

No matter how successful you are, there are plenty of reasons to establish a professional network. In addition to exchanging contacts and referrals, there’s also the opportunity to share ideas and receive free advice from specialists in their field. And, much like getting a second opinion on a medical procedure, your network can act as a system of checks and balances by making sure you weigh all your options.

Ask yourself: Whom should you invite to be part of your network? While the members may vary depending on your strengths and weaknesses, your team should probably include some—or all—of the following professionals:

Attorney: Unless you have in-house council or a legal background yourself, an attorney—especially one with some experience in your industry—is almost a necessity. Among other things, an attorney can help defend you and your company from potential lawsuits, review contracts, and help with succession planning.

Accountant: While most people only use their accountant during tax season, business owners will find that an ongoing relationship can save them money in the long run. Not only can an accountant keep you from running afoul of the IRS, they can also show you how to structure your business and become a more tax-efficient operation.

Banker/Financier: As we all know, cash flow is the lifeblood of any business. And in today’s restrictive lending environment, having a banker in your corner can be a real boon. By providing easy access to credit, or letting you hear about the most favorable rates, a banker can be an invaluable addition to your team.

Insurance agent: A professional insurance agent can help you prepare for a number of critical business issues. Specifically, an insurance agent can help your business overcome the loss of a key employee, enhance your executive benefit package, fund a buy-sell agreement, and protect your family’s future by insuring your business interests.

As you can see, there are a host of advantages to creating a network of professionals with expertise in their field. Best of all, it’s a win-win for all parties, so setting one up may be easier than you think.