INSURE YOUR FUTURE NOW!

MAY 2014 INDEX

INSURE YOUR FUTURE NOW!

BY ALAN PLAFKER, President & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION

Proper planning is essential to protect your assets, preserve your estate and minimize your tax liabilities. If you have children or others you want to inherit your estate this planning will help achieve your goals. It will ensure they will receive their share to provide for a better future. Today, the high values of assets like homes and taxi medallions contribute to significant accumulation of wealth to protect. Many of us may not have thought of financial and estate planning.

First, you must identify your needs. There are legal considerations to address such as having a properly executed will, including a health care proxy and power of attorney. There are also tax and accounting considerations which are an essential part of the planning process.

Insurance protection is a part of the planning process and provides some of the answers.

Here are some ingredients for the asset protection recipe:

Liability & Auto Insurance - Auto Insurance is required by law so there’s no choice if you own a vehicle, but you should increase your limits above the minimum legal requirements. If you are sued by someone as a result of an auto accident or someone is injured on your property, you could lose your assets if they are awarded a judgment in excess of the limits on your coverage. It is important to have high liability limits on your Auto and Home to protect these assets and have physical damage coverage for the auto if it is valuable.
Property Insurance - If you own real property like homes, investment or commercial property you can have a substantial loss from Fire, Flood, or other natural disasters. Damage to the building or the contents can be devastating. In addition, coverage for additional living expense, debris removal and cleanup after a loss should be reviewed.

It is important to insure for the full replacement value and review the amount of insurance periodically and make sure you have the right coverage form with the least exclusions. There are many options to review to make sure you are properly insured. Increase your deductible to reduce your cost, but don’t reduce your coverage. Chances are you won’t submit a small claim since it can be managed, but you need the right coverage and limits in the event of a major loss.

There are also limitations for valuable items like jewelry and collectibles that could be scheduled on your insurance to insure the full value is protected for these valuable items. And, as described above, you can be sued by someone as a result of an injury on your property. Maintain high liability limits on your home and property too.

Life & Disability Insurance - If you die or become disabled, the family income will stop or be greatly reduced. You will no longer have the income needed to support your family and you may use your assets to pay your expenses. It is important to have Life and Disability coverage which provides benefits so your family can pay expenses and not deplete your assets.

This coverage should be reviewed annually. Circumstances and lifestyles change and the coverage you have may need adjustment. There are many types of policies with many options, so get the coverage you need while you are young and healthy. Also, don’t be shortsighted. It is important to maintain coverage for long term benefits so that it is in place when you are older when it is more difficult or impossible to get approved for new coverage.

Health & Medical Insurance - If you require medical attention due to a sickness or accident the cost of hospitals and doctors could be significant, especially if a major surgery or treatment is involved. It is important to have the proper coverage and not have to pay for medical care with your assets.
Long Term Care Insurance - If you require care in a nursing home or need home care because of a medical condition, this is not covered by health or medical insurance. It can cost hundreds of dollars per day which adds up to hundreds of thousands per year. It is important to be properly insured and not use up your assets. Medical Insurance or Medicare coverage does not provide this benefit.

Don’t compromise your coverage needs. Review your policies often, use high deductibles and maintain your insurance to protect the large exposures so the insurance is there when you really need it. Review your protection now!.

Take the time to consult with an experienced professional who can give you the right advice. It is a team effort with an attorney, accountant, financial advisor and insurance agent to develop the plan that fits your individual needs. There are costs involved, but the cost of not planning could be much greater. Speak to a professional you really trust to do the job or to recommend the right people.

Estate planning with a properly executed will and other legal documents will also help to quickly resolve any estate issues after death so your beneficiaries will have easier and quicker access to the estate funds, address the tax implications, and minimize probate court intervention.

There are some groups of professionals available at a reasonable cost from various Organizations, Associations, Unions, and Credit Unions. For example, Melrose Credit Union has legal services, financial planning and an insurance agency. When these services are packaged together and coordinated with your Tax and Estate Planning advisors you can develop the plan you need at a reasonable cost.

So, don’t risk losing the assets that you’ve worked so hard all your life to acquire because you didn’t plan. Plan to preserve your assets which will provide you with the income you need if you live a long life. Plan to have your estate preserved to pass along to your loved ones when the time comes or if
anything unexpected should happen.

When you insure your future, you are investing in your children’s future.

Start planning NOW, before it is too late!

Your Professional Insurance Agent …
We want you to know about the insurance you’re buying.

Alan Plafker

President of Member Brokerage Service LLC, A Melrose Credit Union Service Organization
Licensed Insurance Broker
President and Member of the Board of Directors, PIANY, Professional Insurance Agents Association of New York
Active Member of CIBGNY, Council of Insurance Brokers of Greater New York
Treasurer, New York Independent Livery Driver Benefit Fund Board of Directors

His agency insures thousands of policies for Taxi Limousine Commission insurance as well as many policies for all types of personal and commercial insurance. He can be reached in his Briarwood, Queens office at 718-523-1300 X1082, or www.MemberBrokerage.com.