When a recession hits, the last thing on people’s minds is adding a monthly expense to their bottom line. In fact, most people try to figure out how to cut expenses instead of adding to them. Therefore, adding a life insurance policy to your budget may seem like an easy expense to avoid, but did you know that this type of policy can be a literal lifesaver if you and your family find yourselves under a financial strain? 

According to our partners at Frankenmuth Insurance, there are many benefits to having a life insurance policy, even during poor economic times. 

1. It allows you to support your family: Frankenmuth states that four in 10 households are not financially able to meet all of their expenses without a life insurance policy. If you or your spouse passes away, will you be able to meet the daily or future living expenses? Life insurance can help you cover day-to-day expenses and even pay for your child’s future education, like college tuition.

2. You won’t leave your family in debt: Life insurance will help you pay any outstanding debts. If you owe a lot or have credit cards when you pass away, your life insurance policy will help your loved ones pay off your debt.  Your family will also be able to continue paying the mortgage with life insurance benefits.

3. Get help now paying chronic illness costs: If you have a terminal or a chronic illness, you can potentially get help now while you’re still living under an accelerated death policy rider which will let you receive a portion of your death benefits to help pay expenses. You have to be incapacitated and unable to perform more than two daily activities without substantial help.

4. It will help sustain your business: If you are a partner in a business, a life insurance policy will help your business carry on should something happen to you.

5. It’s tax-free: These payouts are not considered income, so your family won’t have to pay taxes on the monies they receive. 

We know recession and inflation can place an undue burden on your household expenses. Even though you may not want to add another monthly payment, we highly recommend that you act now to protect your loved ones and in the future by exploring a life insurance policy. A Risk Consultant from our Life/Health Team can help you determine which policy is right for you.

The Prewitt Group EvennSanta Needs Insurance

The Prewitt Group EvennSanta Needs Insurance

Up on the housetop reindeer pause, out jumps good ole Santa Claus. Down through the chimney with lots of toys, all for the little ones with Christmas joys. This song, written in 1864 and which Gene Autry made famous in 1953, makes Santa’s job sound easy enough, but what is Santa really putting at risk when he delivers toys to children all over the world? What happens when something goes wrong or there’s an accident with his sleigh? Is Santa immune from being held accountable? 

It may all sound very magical, but let’s face it even Santa needs insurance. As we see it, there are a number of items that Santa would need insurance coverage for in order to help him mitigate the risks involved in delivering toys to children:

1. North Pole Home: Santa needs a Homeowner’s policy to cover any damage to the structure or its belongings caused by fire or theft. It’s also good for any elves who may be injured in Santa’s home.

2. Santa’s Workshop: For this particular part of Santa’s business, he will need a Commercial Insurance policy that will financially protect his business from common risks such as lawsuits, cyber-attacks, theft, damage, customer or employee injuries or any other events that may come up. He also will need a Worker’s Compensation policy to help cover medical costs if one of his elves is injured or falls ill while performing their duties on the job. We also recommend a Product Liability policy to protect his business from claims on products he made in or sold from his workshop. This policy also protects against bodily injury or property damage.

3. Elf Health Insurance: Because it takes many elves to make toys for children all over the world, Santa will want to make sure his elves remain in tip-top shape and are healthy. There are many employee benefits options to choose from when deciding the appropriate coverage. We also want to ensure that Santa and Mrs. Claus are healthy as well. We definitely want Santa to have a good policy that covers him just in case he’s medically injured on the job.

4. Santa’s Sleigh: As with any vehicle, automated or guided by reindeer, Santa Claus needs to ensure that he has enough coverage should he get into an accident. We recommend commercial vehicle policies that cover unforeseen damages as well as damage from collisions. Comprehensive coverage would help Santa cover damage from fire, theft, animal damage, natural disasters and falling objects. Collision coverage covers any damage from an accident with another vehicle, vehicular rollover and collisions with objects, like a chimney.

5. Reindeer: We definitely can’t forget about Rudolph; we want to keep his shiny nose shining. Because Santa works with four-legged associates, he will need a good policy that covers any illness or injury to his reindeer on or off the job.

We want your holidays to be worry-free, and just like Santa, you too need to make sure that you have the right policies to cover all of your needs and help you mitigate your risks. Schedule your policy review today with one of our trusted advisors: https://prewitt.group/.

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Have you met Tyler Hudson? In 2018, Tyler joined The Prewitt Group team as an Employee Benefits Broker. He strives to create a better benefits plan that positively impacts a client’s or prospective client’s bottom line. When he is not working with organizations to tailor specific group insurance, healthcare and disability income products to their needs, you may find him travelling with his wife, enjoying lunch at Saw’s Juke Joint or cheering on The Tide. To learn more about Tyler, check out this Q&A:

Q: How did you get into the insurance industry?

A: Before The Prewitt Group, I worked at ADP helping companies streamline their back-office HR functions/software. I worked heavily with Benefits Administration systems, which eventually led me to a position as an Employee Benefits Broker.

Q: Are you seeing any new trends in the industry?

A: Yes, the only constant regarding the employee benefits industry is that it is always changing. One area in particular is employer-provided health insurance plans. On average, an employer now pays about $20,000 annually for a family health insurance plan. It is an upward trend from years past and the burden is being shouldered by both employees and the employer. Services for emergency room visits, surgical hospital admissions and administered/pharmaceutical drugs are rising, which increases the healthcare costs. My job is to help these organizations navigate through these rising expenses to find a better solution.

Q: What’s your favorite part of working for The Prewitt Group?

A: The people. I have a great working relationship with my colleagues and work with some very talented and caring people. I’m grateful to have great mentors who have helped me grow professionally. They have gone above and beyond to help me and take an interest in my personal well-being. I’m very thankful for that, and it makes it a great environment to work in.

Q: Who’s your biggest role model?

A: My dad. Unfortunately, I lost him when I was 18, but he was a great role model and a great man.

Q: Favorite travel spot/vacation?

A: I guess it would depend on the time of year, but my wife and I really enjoy travelling. In the spring and summer, we travel to Smith Lake and 30A often. In the fall, you can probably find us in Tuscaloosa and Bryant-Denny Stadium.

Q: Favorite spot to hang out in Birmingham? (Restaurant, park, brewery, bar, etc.!)

A: I’m a dive bar and BBQ fan, so I’ll go with Saw’s Juke Joint here. We live nearby and generally eat there a couple of times a week. I’m a huge fan of the Smoked Wings and Sweet Tea Chicken Sandwich but will give you an “off-the-menu” pro tip here – try the Loaded Baked Potato on a bed of French Fries served Roll Tide (With Red and White BBQ sauce) and bring your appetite.

Q: Hobbies?

A: I like spending time with family, playing golf, and attending sporting events.

Q: Anything you want to add about family, pets or personal life?

A: My wife, Kensey, and I got married in June of 2017. We are expecting our first child (baby girl) in a short two months! We also have a goldendoodle named Finn.