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Celebrate 2026 !

Another year has passed, and it is time to ring in 2026. With all the fanfare of new year’s parties around the country, it is hard to keep in mind the long game. Not to put a downer on the celebrations but inevitably life will happen and there is a lot that can go down before next December.

To make this next year one to celebrate and not one to lament, it is important to have the right protections in place. Two of the most important things to protect are your family and your financial house.

Although there are a multitude of ways to protect these, perhaps the most streamlined way is with living benefits life insurance. Living benefits are an add on to basic life insurance that allows you to access it when life gets tough due to significant illnesses like heart attack, stroke, or cancer as well as major injuries like 3rd degree burns. Living benefits can also pay you for long term care situations.

This is opposed to regular life insurance which only pays out on death. To put this difference in perspective, the median funeral price is $10,000 while a long battle with cancer can amount to lost income and increased expenses that add up to hundreds of thousands. If you require long term care services that can run over $100,000 per year.

Obviously, living through a major health crisis can be very detrimental both to the family and family finances. This is why living benefits is such a powerful tool.

The cost for living benefits varies depending on your age, gender and current health. An expert insurance c0nsultant can guide you through the process. My agency serves individuals in the United States and I can be found on LinkedIn or you can schedule a free consultation by emailing me at jon@laineinsurance.com.

So, celebrate the new year by planning for the unexpected so it does not ruin a great year.

Banking on Yourself for Your Business

Change is inevitable both in life and in business.

We prepare for life’s changes by saving money, buying insurance, and so on. Owning a business is no different, in fact it is even more important for the small business owner to protect themselves from change so they can continue to bring value to their clients.

While there are many different seasons for a business and various strategies to cope with changes, one extremely important factor that affects a business’s ability to weather any storm is adequate cashflow.

For example, one common trend is the expansion and contraction cycles of the economy. Right now, we are seeing high inflation and although we are not technically in a recession, many of us are feeling the pinch. Having adequate cashflow can ease struggles like this.

Y0u are probably asking, “what does this have to do with insurance?”. Insurance is designed to protect, and one of the best ways to protect against the ups and downs of cash flow is to create your own bank. This can be done with cash value life insurance.

There are several types of cash value life insurance and although each product is slightly different to support different needs, they are all based on the same principle. All cash value life insurance policies throw extra money in the form of elevated premiums into investments or investment indices. This in turn yields returns based on the stock market.

The best programs are indexed off the market, meaning that when the economy soars you participate in the growth, when it contracts your accrued money does not diminish. This strategy has been used by some families over the last several decades to build generational wealth.

In the hands of a business owner this strategy can build a very robust emergency savings plan for smoothing out the ups and downs in the economy as well as be instrumental in weathering big changes in the business environment such as the recent COVID19 pandemic. Additionally, because it is life insurance, it can be used in the event of the death or disability of the owner or a key employ as well as ensuring equity in dissolving a business partnership.

To set up an effective program, it is important to consult with an insurance professional. You should also consult with a business continuation specialist to get a more in-depth analysis of how to keep your business going through the variety of changes that we all encounter. For starters check out this article by Patty Bonsera.

If you do not have a good insurance professional on speed dial and want more information, reach out to my office at 719-247-0008.

What to do About Increasing Cost of Insurance

Insurance premiums for home and auto are skyrocketing across the nation. Additionally, in certain areas many companies are pulling out altogether, making a less competitive marketplace which drives even higher premiums.

Consumers, already staggering from high inflation, are left feeling frustrated and c0nfused. It w0uld seem that insurance companies are taking advantage in a struggling economy and that they are “just out to get rich off of people”. In reality, the situation is much more complex than people imagine.

Bottom line is that insurance companies need to make money like everyone else. Furthermore, rates are based on many factors. A recent article put out by Fox business discusses some of the issues involved. More important than understanding every single facet of why rates are jumping, is understanding what you should do about it.

The temptation is to automatically lower coverage to keep your rates the same. As a blanket measure to save money, this is a terrible idea and can cost the policy owner much more, should a claim occur. A much more intelligent solution is to evaluate level of risk one is willing to accept, and what protections are most important. Then, if premium is still an issue, start by raising your deductibles, look for common discounts, and as a last resort, lower limits.

Before making any changes to your policies, it is important to evaluate how much you can and are willing to put toward repairs/replacement of the insured item if a w0rst case scenario unfolds. Equally important is evaluating what you can do without. For example, say you have bad hail damage to your car. You may be able to live with that or you may not. However, the same hail damage to your roof can pose a much more urgent problem. When you evaluate what you want covered and how, you need to examine all the factors. A good agent will help you through this process.

After assessing the situation, a good rule of thumb is to start reducing premium by raising your deductibles. Keep in mind that whatever your deductible amount is, you should have access to in liquid assets. As you are seeking to save money keep in mind that many companies offer bundle discounts. Take full advantage of these as they can save you up to 15-20%.

If it is absolutely necessary to lower coverage start by eliminating some of the policy endorsements, like blanket increases in personal property coverages. Keep in mind that whatever insurance doesn’t cover will ultimately be your cost if/when something happens. As a last resort, you can reduce coverage, BUT be very cautious about doing so.

You can also look at other carriers. The risk with this is that not all carriers/agents are created equal. A habit of price shopping can leave you with a very poor customer service experience when you need the support most. It is worth extra money to work with good people.

In summary, the philosophy of insurance is that you pay someone else to help cover your back when disaster strikes, this is the principal of risk transfer. So, whenever you make changes, you are either increasing or decreasing your risk. As important as saving money on a monthly bill is, be wary of potential costs down the road that are much higher than your current premium.

Celebrate Life

SEPTEMBER IS LIFE INSURANCE AWARENESS MONTH

Especially after the recent pandemic, more people are acknowledging the uncertainty of life and the need for protecting their family or business when they are no longer around.

BUT, how does one protect themselves and their loved ones in the midst of a health crisis?

People often assume that their health insurance will cover most eventualities. This is not necessarily the case. In general, health insurance only provides for treatment of health conditions and there are major gaps (depending on one’s plan) in what treatments/conditions they will cover. It is important to note that even a good health insurance plan will not cover periphery services or extra living expense due to a health issue.

Disability insurance, long term care insurance, as well as a wide variety of supplemental insurance programs attempt to close that gap. However, these programs have many limitations such as, scope of care provided, age restrictions, as well as significant limitations on what counts as a triggering event.

HOWEVER, there is a better option! No longer is life insurance just to help others when you die. Now, there are riders on some life insurance policies that are called living (or accelerated) benefits.

These benefits allow early access to a portion of the death benefit for certain major or long-term health crises. Depending on the trigger it is possible to access anywhere from 50% – 80% of your death benefit. If you have a million-dollar policy, on the low end of the spectrum you would receive around $500,000 as a tax-free lump sum.

This opens a world of possibilities so you can fully live the life you have. With living benefits, you can pay for good care, pay bills, or go take a vacation.

What if you don’t use the benefit?

Often, the living benefit riders are attached to permanent (cash-value policies) so, if you live a long, healthy life you still receive a benefit, or you can always use the normal death benefit. So, whether you live long and healthy, or die young, or some other iteration, you can celebrate life through knowing every eventuality is covered.

The best way to get the right program in place is to talk with your insurance professional. If you are a Colorado resident in need of an insurance professional, feel free to reach out to my office via the contact form.

What You Don’t Know Can Hurt You

One of the things I have become increasingly aware of the longer I am an insurance agent is that there is a ton of misinformation proliferated about this industry. It doesn’t help that it has been organized in such a way that the average person has difficulty understanding the nuances in coverages. 

One example of a misunderstanding that came back to bite me hard was regarding life insurance. Back in my previous career, I knew nothing about insurance, especially life insurance. I did not realize that underwriting for individual life policies was very selective. To the point where most major illnesses, especially those that are rare and not well studied, are barred from being covered. Since my health condition had just recently been diagnosed and I was still coming to terms with it, I just assumed I could get more later.

Fast forward 9 years and I became an insurance professional. One of the first things I realized was that the small amount of insurance from my previous job would barely bury me and I needed more. Sadly, it was too late. Because no one bothered to explain the system to me, I operated off of bad assumptions because I didn’t know better.

That is why I choose to educate others, so they can hopefully avoid similar situations. Obviously, people don’t realize what they don’t know. That is why it is important to have a good agent who will help you to navigate this very confusing industry. If you don’t have a good agent, feel free to reach out to my office.

Buyer Beware

When you have a claim you expect your insurance company to protect you. Most will for the first couple of times….BUT what if you have multiple cclaims in a year or over a few years

Many don’t realize the mindset of insurance companies at a corporate level. Insurance firms are for profit which means that bottom line they exist to make money. Now, ethically and legally they are bound to fulfill their obligations to the consumer when disaster strikes. However, there is little preventing the insurer from getting out of the contract if it becomes unprofitable. With due notice to the consumer they can cancel or non renew due to multiple claims in a short window especially if they can demonstrate that the claims were not all acts of God.

I’ve enccountered this situation several times. Most recently a gal who I will call Susan who has been with a certain major name brand insurer for a long time and experienced four major claims in the last few years. As a result she received notice from her insurance company explaining they were non renewing her. In helping Susan I was able to get her a replacement policy with a small brokerage firm, but for comparable coverage the cost was just over double that of her current premium.

My heart goes out to Susan since most if not all the claims were unavoidable in her case. I got to thinking how to avoid this situation. There are two courses of action that help reduce the likelihood you will be blindsided in the same way Susan was.

First get to know your agent well. Your agent is your liason with your insurance company. They are able to help walk you through the terms of your contract and be there for you before you start getting nasty communications from your company.

Secondly, bear in mind the profitability model that all businesses including insurance companies operate under. A coffee shop does not give away free coffee without a plan to grow business nor do insurerers pay claims without counting their costs which involves from time to time getting rid of or up charging “bad” risks.

With that in mind, it is important to consider carefully before making a claim, especially if you are several claims in. You might want to ask yourself can I afford this, what are the long term consequences etc. You might also consider switching to a company that has terms that are more favorable to you.

Above all talk to your agent they are there to help you. If you need an agent give my office a call (719) 247-0008 or fill out the contact form.

The Coverage Your Business Needs

In our world today there are a variety of threats to businesses especially small businesses. Top of everybody’s mind is COVID, which is typically not a risk insurers will cover at least in the traditional sense. However, there are other risks that business owners think little of until it is too late.

There are three areas of coverage that most businessses need but tend to be under covered in. The first is cyber liability coverage, secondly, employment practice liability coverage, and lastly, key person insurance. There are others that are more industry specific and I will touch on those in the future.

Everyone knows that cyber attack is a ever present threat. The nightly news regularly has spots about large corporations that have gotten breached by cyber criminals. Most small business owners seem to think it only affects major chains, but the reality is major chains are the only ones that live to tell about it. As a small business owner the smallest breach can cost tens of thousands to correct and repair. The process is very complex in addition to being expensive and drives many out of business. If a company has a brick and mortar, does e-commerce, or takes credit cards at all they need cyber protection.

Employment practice liability is applicable to anyone who has W-2 employees. We live in a very litigious society and even the best of us make mistakes in managing our staff. Employment practice liability protects the owner from lawsuits arising out of accusations of wrongful terminatilon or other discriminitory conduct. Beware however, that in this time of COVID insurers are very wary of covering businesses for this particularly because so many have been laid off and hence lawsuits for wrongful termination are more likely

Key person insurance is the best way to cover your business from loss of certain key employees due to disability or death. This insurance is not subject to the same limitations that other coverages have when dealing with pandemics. If you have key person insurance in place, then it wouldn’t matter what disabled or killed the employee, the fact that they could no longer work triggers a payout to the business to replace that individual. This insurance is incredibly powerful as it can help businesses of all sizes and varieties.

To ensure these coverages are on your policy you should consult your agent. If you need an agent, I am happy to review your policy with y0u. Simply fill out the form below and my office will be in touch.

Realizing the Big Picture

When you think of your insurance policies, what comes to mind? Are they simply another bill? Are they helpful tools? Or, are they essentiial building blocks for financial success.

Some view insuerance as just another bill.

I run into this a lot , Prospects like Charlie, who has state minimums on his cars, shops every year for the lowest rates, has no renters policy, and is content with his life policy through work which he had before the birth of his son.

The wiser among us, might view insurance as necessary or even as a helpful tool. Most of us fall in this camp making sure we get health insurance, life insurance, disability insurance as well as home and auto. Each of these products is great BUT h0w do they fit in the larger picture.

Most of us have a vague idea of financiall growth and wealth. We have this fuzzy idea of how our 401K plus social security plus savings is going to secure us a dream retirement. The reality is that building a strong financial picture requires a good deal of planning and strategy.

Not only do you need a plan and execution but it is helpful to see how diffeerent financial products, insurance among them, fit into the overal picture.

The great pyramids weree built from the bottom up, brick by brick with careful attention being paid to each block in a layer so that it could support the one above it. Wealthbuildding is like that,

The insurances you choose should fit into your overall goals and help protect you and your assets as you pursue and reach your goals. At every level there is a right amount/type of insurance that contributes and holds up the rest of the structure.

The best way to establish and realize your goals, is to visit with your insurance/financial professional. They will help you determine which and how much coverage you need to ensure your goals are met.

If you don’t have an agent helping you feel free to reach out to my office through the contact form and we will help you sift through how insurancee can be an integral part of your plan.

Dangerous Myths About Life Insurance

I hear it all the time when I talk with people about life insurance.

“I am good because…”

There are many of these excuses and I made many of them myself. The most common misconceptions are also the most dangerous because they leave people assuming they are good when usuallly they are not. Here are the top 3 “I am good” traps people fall into.

  1. I have a policy through work
  2. I am young and healthy.
  3. I can’t afford it/I don’t need that much.

I have a policy through work

I have heard this numerous times from people. Many medium to large companies offer life insurance to their employees as a work benefit. While this in itself is all well and good, the policies are often very small and if the employer pays the premium they control the policy, meaning that if you seperate from them ever your life coverage vanishes.

Even if you carry the policy with you when you move on they are typically only good for replacing a year or two salary and the premium typically doubles or worse. This is not good news for a family, like many I work with, who rely on both incomes to run the household . It is even worse if one spouse brings in most or all the income. I was working with a client, I’ll call him Dave, who brought home 90,000 of the household 100,000 income. Dave’s work policy pays 200,000 upon his death. Like a many young families, he has 2 little kids and a mortgage. I asked him one question. “How long…?”

How long does your wife get to keep the house, the kids fed and clothed, and maintain some sense of normalcy before she is out of money?

We opted to get Dave a supplemental policy to fill the gaps left by the work policy.

I’m young and healthy

20-30 year olds without major health issues often feel as if they don’t need life insurance, espcially if they are not married and don’t have kids. The truth is this is the best time to get life insurance for 2 reasons.

  1. No other time in life will it be this affordable or this easy to get.. For young adults that are still single, they don’t need much coverage but it is good to get a start while you can breeze through underwriting.
  2. It guarantees insurability. You never know when disaster will strike, in fact the best case scenario guarantees that you will get older, have health problems, and die. By getting life insurance before that time you are ensuring that you have available protection that can be converted into more long term solutions that meet life’s changing needs.

I can’t afford it

This is perhaps the dumbest excuse ever. i know because it was tbe one I made until it was too late. My wife and I got married in 2008, 2 years later I started showing symptoms of what would eventiually be diagnosed as a progressive neurological disorder called Cerebellar Ataxia.

Hindsight is 20/20. Had I known then what I know now, I would have made room in the slim budget for enough life insurance to fulfill my marriage vows to protect my wife. I should have done this on our wedding day or at least heeded the symptoms 2 years later before being rendered uninsurable by the diagnosis. I was given another opportunity in 2015 to get a policy through work that because I paid  into it was mine for keeps. I opted for a minimal policy to cover burial. I simply didn’t think through how my wife would be affected financially by the likelihood of my early death.

Having made such agregious mistakes myself, I am passionate about helping people avoid the pitfals I fell into. If you or a loved one are unsure about the state of your life protection or if you have been assuming you’re good, Take a few minutes to contact yoour insurance advisor to make sure you are good. If you need help feel free to contact my office at 719-247-0008 or fill out the form below.

What You Never Knew About Life Insurance

September is Life Insurance Awareness Month.

You may be asking yourself, “what is the point?” I mean who cares, really?

According to research by LIMRA (a non profit group supporing financial services) 75% of U.S. households realize that life insurance is important and about 40% feel concerned and worried about life insurance.

So what is it that concerns us? We just don’t know enough. Most people grasp the need for home and auto but life insurance is very abstract until a family uses it.

With an increasing number of ads and telemarketing designed to sell life policies over a distance it is no wonder we don’t understand. The best way to learn is to work with a financial adviser or insurance agent who is trained. The following is a summary of what life insurance can do.

Life insurance’s primary goal is to replacce economic loss from early death, but it can do a whole lot more. Many companies have living benefit riders or accelerated death benefit riders that pay out around 75-90% of the death benefit upon a severe or terminal illness. There are also numerous other riders, or add ons, that protect against disability, changing needs, forgetting a premium and more. Talk with your agent about how you can make life insurance work for you.

A little understood benefit of life insurance is its ability to grow wealth. This is a very complex topic but some basic pointers are:

  1. Life insurance should not be the primary or only savings vehicle but it is a valuable way to grow money.
  2. Life insurance proceeds (cash value or death benefit) are accessible tax free.
  3. It is very powerful for the young.
  4. As with any money growth plan, it takes commitment.

So how do you figure out the amount of life insurance your family needs?

Although the best way is to talk with your individual agent,There are several great tools and calculators available online, like life happens. Generally with my clients I look at, any debt, income replacement needs, outstanding mortgage, and higher education for the kids/grandkids. It is also important to account for budget and overall financial goals especially in regard to cash growth through life insurance.

Particularly in light of the pandemic it is critical we be aware of life insurance and how it can help us. If you have questions, talk with your agent, If you don’t have an agent fill out the form and my office will reach out.