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Some Things to Consider for Insurance

Dennis LeVasseur, Senior Vice President, Sales Manager of BMT Insurance Advisors, recommends having your insurance policies reviewed periodically because circumstances change and “not all insurance policies are created equal.” When weighing the decision to purchase insurance protection, it’s best to get sound risk management advice and insurance protection tailored to your unique needs.

We’ve put together a few things for you to consider:

Why do you need a life insurance review?

Life insurance can be used to cover the increased tax cost of the assets left in one’s estate, thereby maximizing inheritance left to one’s heirs. With life insurance, the payouts for most policies are based on the actual market performance since the policy was issued. The interest rate environment can have a significant impact on coverage and policy payouts. It’s vitally important to understand the value of your life insurance so that when it’s really needed there is no surprise, or disappointment, and the policy provides the protection that is intended.

Because many individuals use life insurance as an integral part of their estate planning, it is important to be alert to the proposed Biden administration reduction to the Federal Estate Tax exemption. Even if this reduction does not occur this in 2021, the current federal tax exemption of $11.7 million is scheduled to sunset in 2025.

Other considerations could include a second-to-die (death benefit paid upon the second death of two insureds) life insurance policy.  This type of policy is generally a cost-effective way to leave a legacy. We also see this type of policy included for a family with a special needs member and the proper beneficiary/ownership designation.

Another area of risk and coverage to consider is personal cyber protection.

Does your homeowner’s policy cover personal cyber protection?

The simple answer is “maybe” according to Andy Pillion, Vice President of Personal Lines at BMT Insurance Advisors. It is important to have your policy carefully reviewed to know what is covered. You may think that you shouldn’t be worried about cyber-threats at home because your bank or credit card company will cover the cost of those losses.  However, Andy advises there are circumstances that are not covered and there are insurances that could help mitigate the direct financial losses. One consideration is a “ransomware attack” where a cyber-criminal demands a financial pay-off to not corrupt your system/computer.  There could potentially be other circumstances with identity theft implications.  Quality cyber coverage includes professional support and planning to help deal with cybercrimes and the potential costs to restore damages from identity theft. Another consideration could be a situation of cyber-bullying by adults or children which could potentially be considered threatening. Understanding your cyber security risks and having the right coverages in place requires a thorough risk review.

Business owners should consider what’s covered under a general business policy, and what may not be included. “A crime policy will generally cover loss of funds, but special endorsements are needed to cover certain types of cyber fraud,” concludes Commercial Sales Manager Dennis LeVasseur.

No matter what the circumstances are, an insurance consultation could help you understand risks and insurance options to consider for providing protection and peace of mind.