Don’t Skip Your Travel Insurance!

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Why Travel Insurance is a Must On Vacation

These days, enjoying unbeatable experiences seems to be the goal for many. Vacations are something everyone looks forward to for extended periods of time. Planning where to go, figuring out the best activities to do, and saving up money and vacation days are all on the to-do list. With all the planning and funds going into your vacations, it’s more important than ever to consider travel insurance to protect your plans.

In the past, you might have skipped travel insurance, but there are a lot of reasons to seriously considering protecting your trip on your next vacation. Here’s why.

Trip costs and what’s at stake

Travel insurance ensures that you’ll be protected, covering at least a portion of what you paid for the travel and its associated expenses should you need to cancel. Should a medical or family emergency occur, travel insurance will allow you to rest assured that you’re not out all of the funds you used to book the trip.

Medical emergencies in foreign countries

If you have to go to a hospital or doctor while traveling overseas, the cost could be immense. Not only are the costs high, but your existing medical policy won’t be much help in an international medical facility. These facilities may require payment upfront. Should an accident occur, having travel insurance can alleviate this burden and even cover the cost of transportation to the appropriate medical facility.

Lost baggage

If an airline has ever lost your baggage, you know it’s one of the most frustrating things that can happen on vacation. Airlines will do what they can to find your bags or cover the costs, but you’re still left without your essentials and valuables. Travel insurance allows you to plan for these higher value items to be covered.

To find out more information about travel insurance, contact Schechner Lifson! Discover how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

Boiler and Machinery Insurance

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What Equipment Is Covered Under Boiler And Machinery Insurance?

For industrial businesses, the equipment they invest so heavily in is the backbone of their production and success. Top of the line equipment could easily cost millions, and the breakdown or loss of that equipment could bring business operations to a standstill. For these reasons, insurance coverage on such expensive and complex equipment is critical.

Heating and cooling systems, boilers, and other operation-focused equipment are typically running 24/7 at your place of work, the breakdown of this type of equipment could be detrimental to your bottom line due to their repair costs and lost productivity.

What is Boiler and Machinery Insurance?

Boiler and Machinery insurance was initially created to cover heavy-duty industrial machinery. Boiler and Machinery Insurance, sometimes abbreviated as B&M Insurance, covers a business for physical damage and costs of broken-down equipment. As such, B&M insurance is also sometimes referred to as just equipment breakdown insurance. If anything happens that takes critical equipment out of service, B&M insurance will pay out to fix the equipment, keeping the business afloat while repairs are taking place.

What type of equipment does Boiler and Machinery Insurance Cover?

B&M insurance isn’t necessary for all businesses, particularly those who don’t own and operate their own building and machinery. But for any business that has invested money in costly equipment, B&M insurance can be critical. Typical types of equipment that insurance companies can include in a B&M policy include:

  • Boilers
  • Computers
  • Telecommunication equipment
  • Copiers and printers
  • Generators or other electrical equipment
  • Refrigerators

Given how much is at stake if something unexpected arises and your operations come to a halt, you might not be able to afford to skip Boiler and Machinery insurance.

To find out more information about insurance policies for employers, contact Schechner Lifson! Discover how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

The Red Car Myth

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The Red Car Myth And Other Auto Insurance Fables

Buying a car is probably one of the first substantial investments you’ll make as an adult. And because of its significance, you’ll want to do your homework. Automobile insurance is one essential piece of the package that you should not overlook. Trying to avoid industry rumors, fables, and false information can sometimes make your research challenging. The most notorious piece of misinformation in auto insurance is the red car myth, which has people avoiding the purchase of a red vehicle for fear that this paint color will leave them with higher insurance premiums.

It’s vital that auto insurance customers are well-informed, so keep reading to dispel of the red car myth and other common auto insurance fables.

Myth #1: Red Cars Cost More to Insure

According to one study, nearly half of Americans believe that owners of red cars will pay more for auto insurance, showing the wide reach of the red car myth. Car insurance companies have repeatedly dispelled this falsehood, with many not even asking about the color of your car when providing quotes. The aspects of a car that will matter are the make, model, type, and age of the vehicle, among some other characteristics of the car. But color is not one of them.

Myth #2: Cheap Cars Are Cheaper to Insure

Another aspect that won’t be taken into account when determining your car insurance policy is the correlation between the price paid for a vehicle and the rates on the insurance policy. While more expensive model cars may have features that cost more to insure, the fact is that cheaper cars can be heavy, rare, or have other characteristics that still drive up insurance rates. So, while certain aspects tied to a vehicle will correlate with rates, it cannot be assumed that the cheaper the car, the cheaper it is to insure.

Myth #3: Car Insurance Won’t Cover At-Fault Drivers

Another common misconception is that auto insurance policies won’t cover at-fault drivers. However, most car insurance policies which U.S. consumers buy will help to pay for damages, even if the driver was at fault.

Myth #4: That Speeding Tickets Will Automatically Increase Insurance Rates

While it’s true that a driver who has a history of reckless driving will pay more for insurance, your auto insurance provider will not necessarily automatically increase your rates if you get a ticket. For drivers that have an otherwise clean record, their premiums may not increase at all for minor violations. Further, many insurance policies include accident forgiveness, promising not to increase rates for your first minor accident.

To find out more information about auto insurance, contact Schechner Lifson Corporation. Discover how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

Corporate-Owned Life Insurance

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Is Corporate-Owned Life Insurance The Right Choice?

Insurance will always be your saving grace when it comes to protecting your business. As a business owner, are you well-versed on all of your options? One type of insurance policy many aren’t aware of is corporate-owned life insurance. While it may be a bit more unconventional, corporate-owned life insurance might be the perfect fit for you and your organization.

Defining Corporate Owned Life Insurance

The main distinction with corporate-owned life insurance is that it is a policy that is purchased by a company, rather than by a singular person, used to insure a specific high-ranking employee or group of employees, within that company. In this scenario, it is the company that purchases and owns the policy, and they are also the beneficiaries that would get the payout, while the key employees are the ones who are insured on the plan.

Situations which warrant Corporate Owned Life Insurance

One main reason a company might consider purchasing a corporate-owned life insurance policy is if the work and value provided by the covered employee or employees are so critical to the business function, that their passing would set the company back significantly, in terms of reputation, customers, and profit. To help keep the business afloat in the aftermath and to help the company find a replacement, this coverage payout can be critical.

Beyond the payout, another advantage is the company can withdraw or borrow against the corporate-owned life insurance policy’s cash value. This can even be seen as a primary benefit of this type of coverage, as no income tax is due on the distribution and this borrowing could end up earning the company additional income, even when paying the insurance premiums.

Want to find out more?

With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today to see how we can make sense of the world of insurance, providing you with the best coverage possible.

Commercial Property Policy Coverage

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How Much Does A Commercial Property Policy Cost?

For business owners or those who own and lease out commercial property, ensuring that you have the proper commercial property policy is critical. Should something happen beyond your control, having a commercial property policy will make sure your business is protected. However, many business owners might be wary of investing in such insurance coverage for fear of how much a commercial property policy will cost them. As with most types of insurance policies, this type of coverage will provide you with peace of mind and a security net.

What’s Covered?

First things first, a commercial property policy will provide coverage for the building that houses a business, as well as all related equipment and inventory inside the location, regardless of whether the property is owned or leased by the business owner. These insurance policies will cover the replacement costs for the building and everything in it, should there be fire, vandalism, and other acts out of the owner’s control, subject to the exact terms of the policy.

The main areas of loss that are typically covered by commercial property policies are the building itself, both the body of the building and the associated components, such as electrical and HVAC systems, the building contents, other people’s property that might be housed within the building, and exterior signs/marquees.

What are the Costs?

As with any insurance, the exact cost of coverage will vary based on several factors. The insurance company you choose, the total amount of coverage required, the deductible elected, the building location, the type of business, and more will all have immense impacts on the final premium costs you pay on your commercial property coverage.

On average, across the United States, a commercial property policy will run business owners between $500 and $1,000 each year for small businesses, with rates extending into the range of hundreds of thousands of dollars for larger corporations. On average, the policy will be in the $700 to $800 range, with a good rule of thumb being that policies will run $1,000 to $3,000 per every million dollars of commercial property policy coverage you want. Policies also typically require a certain deductible to be paid by the policy owner in the event of a claim, usually in the $500 to $1,000 range.

Schechner Lifson Corporation can offer you help in weighing the costs and benefits of commercial property policies. Contact us today to see how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

Split-Dollar Life Insurance Plan

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How Does A Split-Dollar Life Insurance Plan Work?

Life insurance is an incredibly important investment. Ultimately, you are ensuring that you leave behind security and stability for your beneficiaries and not a financial burden. Having a run of the mill life insurance policy might not always be enough. Getting the right type of coverage and using an appropriate life insurance strategy will guarantee that what you are leaving behind is as instrumental as possible.

Split-dollar life insurance is one strategy you can use to confirm your life insurance policy avoids additional tax burdens that will undercut how much your family will receive when the policy is paid out. However, not everyone is the right fit for such coverage. So, what is split-dollar life insurance and who will benefit most?

What is split-dollar life insurance?

Split-dollar life insurance is a strategy for life insurance plans, not an insurance plan itself. The goal of this strategy, which can be utilized with survivorship or whole life insurance policies, is to split the costs and benefits.

Essentially, a split-dollar life insurance policy will enable the relevant parties to have the costs of the premiums paid into the policy and split between more than one party. Similarly, these policies will allow provisions that name multiple beneficiaries and assign specific cash values to be paid out to each of them.

Who can split-dollar life insurance benefit?

Most commonly, split-dollar life insurance is a strategy employed when companies or corporations are involved. For example, split-dollar life insurance plans may be used to split costs and benefits between employer and employee, between owners of a company, and between shareholders and corporations.

Split-dollar life insurance may be utilized between individuals as well. Premiums and benefits may be shared between family members or under the guidance of a third-party Irrevocable Life Insurance Trust (ILIT). It’s advantageous for large estates to separate their life insurance from the estate itself. An ILIT alleviates any burdensome estate taxes once the two are divided. On their terms, policyholders may still determine who the beneficiaries are and assign a trustee to oversee the ILIT.

Setting up split-dollar life insurance

A written agreement may be created that will determine the exact terms of how premium costs will be split, as well as where the cash value and death benefits will be paid. For example, an agreement between an employer and employee will include terms of what the employee needs to accomplish to continue earning the benefit, what would need to happen for the clause to be terminated, if the employee underperforms, is let go by the company, or willingly leaves.

A split-dollar life insurance plan allows you to utilize a cost-sharing plan, retain the insurance rate that was in effect when the plan was first purchased and helps to alleviate any taxes for more affluent estates.

Schechner Lifson Corporation can determine if split-dollar life insurance is for you. Contact us today to see how we can make sense of the world of insurance, providing you with the best coverage possible.

Executive Carve-Out Plans

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What Is An Executive Carve-Out Plan And Does My Business Need It?

As companies grow and prosper, executives who manage the evolution and operations of an organization become incredibly important assets. Companies may go the extra mile to offer supplemental executive benefits to these individuals, in exchange for the immense value and security they add to the work environment.

If your company has some of these one-of-a-kind executives, an executive carve-out plan may be just what you need. Executive carve-out plans are non-qualified plans for highly-compensated individuals, allocating compensation on top of what would already be available to them through the company’s group term life insurance.

What do we know?

When individuals are offered standard group term life insurance by their employer, up to $50,000 of those benefits are untaxed by the government. Benefits of more than $50,000 are considered imputed income and the company pays taxes on the coverage. However, if an executive carve-out plan is initiated, the executive would retain that first $50,000 of group life insurance, in which the employer would take out an individual life insurance policy for additional coverage beyond the first $50,000. This additional policy is only offered to these key individuals; that is, the coverage is carved out.

Why would a company do this?

First, the ability to avoid the additional taxes on imputed income above $50,000 of coverage helps to save on taxes and administration costs for the employer. Meanwhile, the high-value employee receives additional benefits in the form of this insurance coverage that will grow in value over time. When the employees receive this type of executive carve-out plan, they are getting a valuable piece of compensation that they might not be offered elsewhere. With this degree of recognition, these irreplaceable employees are less likely to leave, saving the employer money by retaining these instrumental individuals.

Determining whether an executive carve-out plan makes financial sense for employees at your company depends heavily on your unique circumstances.

Schechner Lifson Corporation can help organizations weigh the costs and benefits of putting an executive carve-out plan in place. Contact us today to see how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible!

Estate Planning Benefits

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4 Reasons Why Estate Planning Is Crucial

While nothing in life may be certain outside of death and taxes, both of these contingencies can be prepared for with proper estate planning. Ensuring you have a tried, tested, and true estate plan is critical if you want to leave your family and loved ones in a secure state.

So, what do you need to know when you start planning your estate?

Defining Estate Planning

One thing is certain, your estate will be passed on to your next of kin whether you plan for it or not. The process of estate planning is arranged ahead of time, ensuring that the passing of assets is done with precision, every beneficiary gets what is intended, and Uncle Sam takes a minimal cut from the estate.

Benefits of Estate Planning

There are no shortages of benefits when planning ahead and getting started on your estate strategy. Of course, no one can predict when it’s their time, so align yourself with the better to be safe than sorry mantra.

Engaging in proper estate planning will offer the following advantages:

  • Reduce the tax burden for those on the receiving end of your assets. Proper usage of trusts or other estate-planning techniques can maximize the amount that gets passed on to beneficiaries – without being hit by federal or state taxes.
  • Costly and time-consuming probate processes are lessened in the court system.
  • Given the sensitive nature of the time and situation, families are able to grieve and focus on taking care of one another’s emotional needs.
  • Protect beneficiaries from their subjective judgment, by allowing your estate-planning to include dictation of what certain assets may be used for.

Getting Started with Estate Planning

Many estate planning attorneys are out there to help you get started in this vital process. Financial advisors are also critical to the estate planning process, as they know the ins and outs of the most effective and affordable way to manage your assets.

When it comes to estate planning – Schechner Lifson Corporation can assist you. Contact us today to see how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible!

Disability Income Insurance Myths

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Debunking 5 Common Disability Income Insurance Myths

As with all types of insurance, disability income insurance is the type of protection you hope you never need to use. Disability income insurance is defined as the coverage that would pay periodic benefits, should you ever become injured or ill and were no longer able to work and earn a wage. So, for anyone who’s the primary income-earner in a household, disability income insurance would be critical to ensure that an unforeseen accident does not leave you and your family without a plan.

Let’s tackle five of the most common misconceptions when it comes to disability income insurance:

1. My standard workplace insurance is enough in the event of an accident

This myth perhaps arises from the understanding of worker’s compensation. Workplaces that offer worker’s compensation replace a percentage or all of an employee’s lost salary in the event of an accident at the workplace. Such plans are common in work environments with heavy duty equipment usage, where the risks of danger and severe injury are high. In these events, you can apply for worker’s compensation through your company.

There are a few reasons not to rely on this standard coverage. First, it is not a given that your workplace offers worker’s compensation. So, before assuming you’d be covered, it is imperative that you double check your coverage options. Secondly, even if you do have an employer who offers worker’s compensation, you still will want to consider a separate disability income insurance. Worker’s compensation is only offered to cover job-related injuries, and nine out of every ten long-term disability claims are for events that happen outside the workplace.

2. The likelihood of needing disability income insurance is very low

An attitude suggesting that you won’t become disabled by an injury or illness at some point in your life doesn’t add up with the statistics.

Part of the reason for this myth is that people only really consider disability events to be those that would leave them permanently disabled. Disability income insurance is also critical for minor to moderate injury events as well. An accident could leave you in severe pain for a year while undergoing physical therapy, or a simple broken bone could render you unable to complete your job until it’s healed. In these events, disability income insurance can step in to assist while your body heals. Data shows that around one in every four young Americans will encounter a disability event of one manner or another in their life.

3. I’m young and healthy, I’ll wait until I’m older to get disability income insurance

A study following long-term disability recipients found that four out of ten individuals were under the age of 50. Young workers are just as prone to accidents, and because they have had less time to save up or prepare financially, coverage is even more critical.

4. My employer offers group disability insurance, so I don’t need to think about individual disability income insurance

As with many insurance plans, it’s terrific when employers offer a baseline policy for coverage, but upon closer examination, you may discover that you require more coverage for your needs. Most group disability insurance plans will cover up to a given percentage of your salary, and you might look at that percentage and decide that it isn’t enough to sustain your family in the event of an accident – particularly if you are the only income earner in the family.

Group disability insurance will not follow you if you leave that job, so if you take time off or are in between jobs, you won’t be covered. These are all essential reasons to consider an individual disability income insurance plan.

5. What about Social Security—won’t that cover me?

Similar to group disability insurance, Social Security coverage will only replace a percentage of your lost income. The government is stringent in determining who gets a social security payout, as they are reserved for those who have the highest need for assistance. Individuals whose disability makes it impossible for them to work in their current job or any other type of occupation are eligible for these Social Security payouts.

Want to find out more?

Schechner Lifson Corporation can offer you help in addressing your disability income insurance concerns. With experienced and caring agents, we can make sure you get the right coverage, at a price that may just be more affordable than you think. Contact us today!

What is product recall? Are you at risk?

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What is product recall? Are you at risk?


Product recall – Wikipedia

  • A product recall is a request from a manufacturer to return a product after the discovery of safety
    issues or product defects that might endanger the consumer or put the maker/seller at risks of
    legal action.

Who may be at risk?

  • Manufacturers
  • Wholesale distributors
  • Business-owners

Yes, the manufacturer is usually held liable for injury resulting from defective products – any
seller can also be held responsible.

A wholesale distributor’s exposure to product liability risk is increased if the risk uses its own
packaging and labels.

  • For example: If the distributor modifies and repackages instructions and warranties. Also, if the
    risk installs, services, or does repair work for the product they can be brought into a liability
    suit and held liable for injury resulting from the defect.

Two exposures exist during a product recall – First and Third-party exposure.

First party loss includes damage to a company’s reputation, loss of income, notification expenses,
costs to dispose of the products and other extra expenses.

Third-party loss covers your legal liability to pay damages as a result of the recall. These costs
may include the recall expense of the product as well as the cost to repair or replace the product.
This can also affect lost Revenues of Others as a result of the recall of the product and other
expenses to replace the product.

In addition to maintaining proper insurance, it is important to apply risk management techniques to
help reduce or eliminate the exposure of a recall.

If you would like further information or would like to discuss this important topic, please feel
free to contact Roseanne Gedman at 908-598-7853 or

March, 2019

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