Term and whole life are both popular forms of insurance. Which one is right for you will depend on your specific situation and goals. At Five Star Insurance Agency in Fords, NJ, we are happy to explain the differences between these two types of life insurance.

Term Life

Term life insurance is for a specified time period, usually 10, 20, or 30 years. Term life will pay the agreed-upon amount at your death, as long as you meet the qualification guidelines, regardless of how long you have had the policy. If you pass away after one year or nineteen years, the benefit will be the same. 

Whole Life

Whole life insurance is designed to stay with you for the remainder of your life. These policies build cash value over time. Once you have cash value in the policy, you can borrow against it or withdraw it. Most policies will pay the death benefit plus accumulated cash value upon your death. 

Which One Do You Need?

When choosing which type of policy is right for you, an important consideration is how long you will need life insurance. If you are 30 years old and plan to have significant savings and no outstanding debts by 60, 30-year term life would be a good option. If you pass away in the time period, it will cover your debts and help replace your income. If you pass away after 60, you have the savings to cover your final expenses and see your family through to retirement. 

However, if you want insurance to cover you for the rest of your life, the whole life is the better option. It can also be used as a way of accumulating savings, which makes it a good option for many people. It’s also the best option if you would like to leave your family with a significant death benefit regardless of your age at your passing. 

At Five Star Insurance Agency in Fords, NJ, we believe in offering clients the best insurance options for their needs. Life insurance is complex, with many considerations. Let one of our experienced agents help you determine which is best for you. 

The state of New Jersey requires all commercial businesses to have worker’s compensation liability coverage, which is part of a typical commercial insurance policy. Anyone that hires at least one employee is required by law to carry worker’s compensation liability. Factors that will determine the cost of insurance policy will be the type of industry you are in, the coverage limits, your location and the size of the company. If you are in a high-risk industry such as construction, your worker’s compensation liability might make it more expensive. A typical commercial insurance policy covers bodily injury and property liability, which means any damages at your business premises caused by you or your employees to someone else or their property. The state of New Jersey makes it mandatory for businesses to offer employee disability coverage.

You should get commercial insurance to insure the future of your business, yourself and your employees. A single accident or lawsuit can wipe out your funds. Paying an insurance premium is the least you can do to protect your business. What you need is an insurance agent that is well acquainted with local rules and regulations and has in-depth knowledge of commercial insurance in New Jersey. It is also important for the agency to have good customer service for their clients. Five Star Insurance Agency serving Fords, NJ is one such agency that can help guide you with the right policy for you. Not only with the offer advice on commercial insurance but will provide you with an understanding of how your commercial insurance integrates with other insurance policies you might have. For Fords, NJ residents, you can get in touch with Five Star Insurance Agency by either stopping by at the office or giving them a call. The contact details are available on the website.

 

Owning and living in a condo is a great way to enjoy life! You have a wonderful home and someone else is there to take care of major repairs and maintenance. While you may pay an association fee, you benefit from a fairly carefree lifestyle. With all of the perks that condo living provides, it’s easy to think that insurance is also someone else’s responsibility. The team at Five Star Insurance Agency in Fords, NJ is here to help you navigate the insurance selection process and ensure that your condo is covered!

It’s Time to Consider Comprehensive Condo Insurance

Your condo association does carry an insurance policy for your building, but it rarely includes coverage for individual units. Typically, a condo owner is responsible for the insurance of their own unit and is obligated to foot the bill for any damage or repairs inside their own home unit. A comprehensive policy will protect you from a number of different events that can cause damage within your unit. The right policy can also protect you from damage that is caused by a neighbor. It’s true that if your upstairs neighbor causes a flood that damages your interior, you will likely be responsible for the cost of repairs. 

With a basic policy, these types of events might not be covered, and the financial burden will fall to you. That is why it’s worth considering a comprehensive condo policy. Be sure that you have the protection you need!

If you own a condo in the greater Fords, NJ area, come see the friendly and knowledgeable agents at the Five Star Insurance Agency. We’ll help you review your options and determine which type of policy is right for your needs. Call or stop by today!

Whether you’re supporting a wife and children or helping aging parents through retirement, a life insurance policy from Five Star Insurance Agency in Fords, NJ can help those you love upon your unexpected demise. Here are a few ways your beneficiaries can use life benefits to carry on after you’re gone.

Pay Outstanding Debts

If you’ve taken out a mortgage, car loan or private student loan with a loved one, he or she will be responsible for repaying that loan after you’re gone. Life insurance benefits can help cover these loans so your loved one can start with a clean slate for the future.

Cover Daily Expenses

Life benefits can help pay for daily expenses that your paycheck used to help cover for your family. This includes rent/mortgage payments, food, clothing, school needs for the children, doctor visits, utility bills, etc., to help your loved ones carry on.

Pay for College

If you have children, life benefits can be put into a trust to help pay for their college expenses after you’re gone. A college degree can help your children kickstart a successful career to enhance their future.

Supplement Aging Parents Retirement

Life benefits can help supplement your aging parents’ retirement. If you’ve been providing financial support to your parents while you were alive, you can have peace of mind that they will continue to be taken care of after your demise.

Pay Your Funeral Costs

If you’ve not made prior arrangements for your funeral expenses, life benefits can help cover these costs so your spouse or remaining relatives don’t have to assume this financial burden.

These are just a few of the many ways a life insurance policy can benefit those you love. To learn more about life insurance options and costs, contact us at Five Star Insurance Agency in Fords, NJ.

 

What kind of commercial insurance policy do you need?

If you just opened a business, you probably do not have all your ducks in a row yet. You probably need commercial insurance, but which one? 

Wait. You didn’t know there is more than one kind of policy? Five Star Insurance Agency of Fords, NJ wants you to understand the differences behind the phrase commercial insurance.

That term actually refers to a group of policy types that include a range between malpractice and glass insurance. It simply depends on what kind of business you run.

Every business needs a business owner’s policy (BOP). It combines basics like liability and property insurance.

Liability cover things like slip and fall accidents. It also covers you if a customer gets hurt by your product.

Property insurance covers your damage from named perils like fire, flood, tornado, etc. You will need an equipment breakdown or boiler and machinery insurance policy to pay for the repair of equipment breakdowns though. It also covers your business interruption losses. 

To clean up after events such as a tornado, you need a debris removal policy. It pays for damage cleanup from a flood, fire, windstorm, etc. You have to remove debris so you can begin rebuilding.

You can insure just the glass of the building, too. A glass policy pays to replace the glass on your storefront when damaged. It covers interior glass, too. 

Businesses that deliver items or transport or store them, require an inland marine insurance policy. Doctors need malpractice insurance.

Fidelity bonds refer to a type of commercial insurance that protects against a dishonest employee stealing from the business. It also protects the business from acts of fraud and forgery.

While crime insurance still covers the two items that a fidelity bond covers, it also provides insurance coverage against computer and funds transfer fraud as well as kidnap, ransom and extortion coverage. This policy type also covers money and securities, money orders and counterfeit money.

There is much more to the world of business insurance. Come in and talk to an insurance agent at Five Star Insurance Agency of Fords, NJ  to learn more about which policies protect you.

You purchase life insurance to provide for your family in the event of your death. You want to make sure they get the full amount. That means planning a method that goes untaxed. Five Star Insurance Agency in Fords, NJ wants you to understand how your life insurance policy affects your total estate and why, depending on the scenario, your beneficiaries might get taxed.

Typically, a life insurance payment goes untaxed. The death benefit does not count toward taxable income. The exception to this occurs when the life insurance benefit comprises part of a larger estate. Currently, the US tax law sets this cap at $11.4 million.

For many executives and those with accumulated wealth, life insurance can easily drive an estate above the 11.4 million mark. That’s when placing your life insurance policy in a trust becomes vital. You can protect your investment and your beneficiaries’ benefits by placing the policy in an irrevocable trust.

Also, check your state’s estate cap. Each state uses its own and if you move, the new cap applies. Your beneficiaries could owe money on state taxes.

Your beneficiaries could also end up paying taxes if you, as the policyholder, arrange for the insurance company to “hold the policy” for a short time. Your beneficiary will pay taxes on any interest earned during that period.

Contact Five Star Insurance Agency in Fords, NJ for help planning your life insurance and your estate. We can help you find the right mix of investments and policies to protect your family and provide an untaxed death benefit for them in the case of your demise.

As a renter, you may think that you don’t need renters insurance. You may think that you are covered under the landlord’s policy. If you believe that, you are mistaken. The landlord’s insurance covers his building, the exterior walls, and the roof. It may cover the appliances if they belong to the landlord. Your personal possessions are not covered. In Fords, NJ Five Star Insurance Agency has agents who would be happy to talk to you about the benefits of inexpensive renters insurance. 

Renters insurance is a good idea for a variety of reasons. If it would be a hardship for you to replace all your personal items, clothing, electronics, accessories and decor then renters insurance can help you by replacing them in the case of a covered event. Covered events can be things like fire, theft or vandalism. In the case of theft, even if you are away from your rental, your personal property is covered. 

If you own a pet and your pet were to bite someone, the expenses from this event are something that your policy covers. It also extends to someone being hurt while they are visiting you in your rental. This liability coverage would also help to pay any legal fees that you might incur. 

If a fire or a storm were to damage your home or apartment so badly that it was no longer habitable, your insurance will help with the cost of staying somewhere else until your home has regained its certificate of occupancy.

Renters insurance offers a lot of protection and if you would be unable to replace everything you own easily it is well worth having. Why not give us a call or stop by the office of Five Star Insurance Agency in Fords, NJ to discuss your renter’s insurance needs. 

 

Your Fords, NJ business needs special protection. Insurance policies like commercial auto, liability, and property ensure that you can always meet your financial obligations, no matter what happens in your daily operations. However, there are times when your business policies might not be enough. In those cases, a commercial umbrella policy from Five Star Insurance Agency could be the key to your continued success.

What is Commercial Umbrella Insurance?

An umbrella policy is an addition to your existing policies. Rather than replace your BOP or other business coverages, this policy supplements them. When another policy is triggered by a covered event, your umbrella policy adds additional funds to your payout.

Why Do You Need an Umbrella Policy?

Chances are that your business is your biggest investment. If something threatens that investment, you could find yourself in debt and without a viable way to support your family.

Every insurance policy comes with a limit. Regardless of how much damage or loss you might suffer, your policies will only be able to grant you so much financial relief. In the case of a total loss, you may not have enough money to meet your established bank and loan obligations, rebuild your grounds, and restock your inventory.

In liability cases, you can easily spend thousands of dollars defending your business in courts. If found liable for damages, you could find yourself spending out-of-pocket for court-ordered costs after your insurance coverage taps out.

The addition of a low-cost umbrella policy is the best way to ensure you’ll always have enough cash to keep your business running, no matter what problems come your way.

Contact the insurance experts at Five Star Insurance Agency for a personalized review of your business insurance needs. We can help you customize a plan that perfectly fits your Fords, NJ operation. Call us for more information on umbrella insurance.

One of the largest myths surrounding flood insurance is that it is covered under one’s home insurance policy. In fact, most homeowners’ insurance policies will specifically exclude coverage. In order to be protected from a flood, you need to purchase a separate policy and often this is done through the US Government. Often homeowners will see that their policy provides coverage for water damage and assume that includes flood coverage. However, water damage is a very different coverage which is meant to cover damage from events such as a broken pipe. If you are unsure if you are covered for flood reach out to an agent at Five Star Insurance Agency. We proudly serve the  Fords, NJ.

A second misconception is that you can only purchase flood insurance if you live in a high-risk area. Anyone can purchase flood insurance and in fact, more than 20% of flood claims are made by households who reside in what is considered a low-risk area.

Some homeowners assume a flood policy will cover everything on the property, but this is not true. If you have a deck, patio, swimming pool or hot tub you need to check with your insurance agent to make sure the coverage is adequate for those items.

Many owners mistakenly forego flood insurance because they believe the federal government will step in and provide financial assistance after a flood. However, this is not the case, in order to qualify for the assistance the government must declare it a federal disaster zone which happens in less than 50% of flooding events nationwide.

If you live in the Fords, NJ area and would like to learn more about flood insurance, please reach out to a specialist at Five Star Insurance Agency today.