TPG Friday LI

This week’s FAQ is answered by Jack Prewitt. Jack has followed in the path of his grandfather, Jack, his father, Johnny, and his uncle Andy as he continues the legacy and tradition that distinguishes The Prewitt Group as a truly family-owned agency.

He shares that this can be very much of a gray area for many employers. There is nothing in a typical workers’ compensation policy where coverage is automatically extended to independent contractors. However, most workers’ compensation carriers will want to review a list of all 1099 employees for a client and list them on the policy should an event occur. It can also depend on the scope of the work being performed, and how often it is occurring, by that independent contractor.

Regardless, it is important to have a conversation with a risk advisor about how you are utilizing 1099 employees and how best to navigate the coverage you need. Reach out to us at The Prewitt Group to discuss these options and any other questions regarding risk and coverage for your business.

TPG Friday LI

Brian Fleury assists in answering this week’s FAQ. Brian joined The Prewitt Group in 2019 as a Personal Lines and Small Commercial Distribution Leader.

Long-term care insurance helps pay for a wide range of services for those who need it and is mainly designed to assist with costs of custodial and personal care. While most of these services do not include the cost of medical care, coverage can include staying in an assisted living facility, nursing home, or adult day care. These policies pay for the cost of care due to chronic illness, an injury, or a disability. Often, just the effects of aging requires people to need help, and long-term care coverage can help.

As you go through your financial planning process, it’s important to understand long-term care costs as you approach retirement age. We have risk advisors that can walk you through this process and make sure that you are covered properly.

TPG Friday LI

David Murdock leads the Life Insurance, Healthcare and Group Benefits division of The Prewitt Group. In addition to life insurance, David has expertise in disability income products, financial planning, group insurance and long-term care. Below he gives insight into this FAQ.

David shares that Universal Life (UL) insurance combines elements of term life and permanent life insurance with an investment savings element and low premiums that are like those of term life insurance. Many UL policies contain a flexible-premium option that relies on the performance of the underlying investment to support the cash values of the policy and the death benefit.

Like term insurance, at death, a beneficiary only receives the death benefit, but UL provides insurance beyond a typical term of 10, 20 or 30 years. “Flexibility” is most often associated with UL because of the design options available, whereas term and permanent insurance have fixed premiums. There are a number of caveats with flexible premium insurance products that accumulate cash value, like, what happens when I take cash out of the policy, what happens if I skip a payment, and what if credited investment interest doesn’t maintain policy premiums?

At The Prewitt Group, we have risk management professionals for all of your insurance needs. We are here to answer all of your questions and help put your mind at ease, as we sustain our brand promise, The Power to Mitigate Risk.