Category Archives: Insurance / Employee Benefits

By David Kopyc

The Baby Boomer generation will pass on an estimated 80-plus trillion dollars of wealth to their family, and this will be the largest wealth transfer in the history of mankind. There are certain types of financial assets that are very complicated to be passed on to the next generation and this article will focus on one in particular – qualified assets (IRA, 401(k). 

Qualified assets are estimated to be around $20 trillion of wealth. As I write this article, a vast sum of the money will be 100 percent taxable as ordinary income and never receive a step up in basis at death. These monies have a huge tax obligation sent down to your heirs to pay the tax bill that you left behind.

Previously, financial advisors had the ability to do a stretch IRA, to spread these payments out for decades, but the government discontinued the stretch IRA and now non-spouse beneficiaries have 10 years to have 100 percent of the inherited IRA paid out. That leads me to ask you a question…Do you want to leave a tax liability or do you wish to leave a tax-free benefit for your legacy?

Deciding on that answer can lead you to consider purchasing a life insurance policy to pass some of your qualified assets tax-free to your loved ones. This option does not have to be all or none. At the Retirement Planning Group, we usually do a carve out, with a portion of the qualified assets to be spent down to purchase a life insurance policy. Some of these policies can be paid for over a 10-year, 20-year, or lifetime payout. Depending on your other assets and the size of your estate, you might even have the ability to do a one-time payment.

By Susan Elise Campbell

Cyber crime is rising so rapidly that businesses without specific cyber insurance are at risk for tens to hundreds of thousands of dollars of loss and even more, according to Ken Grey, a senior vice president with Marshall+Sterling in Saratoga.

“It’s not a matter of if, but when, your business will need to make a cyber claim,” he said.

Grey said that in an ideal world, 100 percent of his clients would have not just standard cyber coverage under their general business insurance, but a specific and separate policy to cover the growing number of claims. He believes this coverage is so important that if a client refuses to get coverage, he asks them to sign a document.

“The reason for this is not to say ‘I told you so’ if they are later a victim of cyber crime, but to get them to think about the decision they are making,” he said.

Some sources like statista.com say that nearly 75 percent of all U.S. companies were at risk of being cyber-attacked last year. In 2022 there were 480,000 such attacks.

“Everyone has heard about the data breaches at AT&T and Ticketmaster,” said Lorraine Emerick, a senior vice president at Marshall+Sterling. “With a smaller business, the owner often thinks, ‘it won’t happen to me.’”

But it does. In the Capital Region predominant targets are middle market, medium sized companies, often because the attackers assume they do not have the staff or the time to “keep all the guards and fortresses in place” to protect themselves, noted Grey.

“Cyber criminals may not be seeking a $25 million ransom, but they’re looking for something,” Emerick said. 

Brian M. Johnson, MBA, CLTC

When it comes to where and how you live, and what you do with your money, you want the freedom of choice and confidence that you’re making the right decisions. 

The same is true with your long-term care strategy, helping you set the stage for the future and the legacy you have planned.

Long-term care is quite simply assistance with simple everyday tasks, even as simple as eating or getting dressed. The need for care could arise from an accident, illness, cognitive impairment, or the aging process. You may never need it. 

But, the best time to start thinking about it is before the need arises and while you’re still able to take control. Many Americans work hard, save diligently for retirement, yet fail to address the single biggest risk to their portfolio and families: extended healthcare. 

When it comes to long-term care, do not be swayed by common misconceptions such as: 

• “It won’t happen to me.”

People unrealistically downplay their personal risk. Seventy-nine percent of people put off discussions about long-term care, but 98 percent of financial professionals say they have clients who have needed it. In fact, being healthy presents even a higher risk of needing long-term care services than someone who is managing chronic a condition.

• “Medicare or Medicaid will cover me.”

If qualified, Medicare will likely be insufficient for long-term care needs and Medicaid does not account for your choices or preferences, and one must financially qualify for benefits.

• “That’s what my savings are for.”

Many Americans significantly underestimate long-term care costs. Home care, assisted living and nursing care can run between $40,000-$150,000 per year in today’s dollars.

• “My family will take care of me.”

by Renee Walrath

Open enrollment is around the corner and employers are scrambling to accommodate the rising cost of health insurance.

The annual premium for individual coverage has risen more than $225 per year on average, and family coverage has risen more than $700 per year on average from 2010 to 2022. Statistically speaking, prices for healthcare grow much faster than inflation and that combined with increasing employee demands has companies, both small and large, forced to make difficult decisions.

The specific reason for increasing healthcare costs can be attributed to a variety of factors including the following:

• Continuing research and new, innovative technology leading to more expensive procedures and products.

• Labor shortages, physician consolidation, and contract renewals are amplifying the already aggravated industry.

• Chronic healthcare conditions, catastrophic health claims and rising prescription drug prices add to the sizeable hike for 2024.

This is the second year in a row that employers have projected a 7 percent-plus hike and confronting affordability and disrupting costs are among the top obstacles for employers in 2024.

By Rob Snell

It’s probably not on your calendar, but September is Life Insurance Awareness Month. And that means it’s a good time to become more aware of the benefits of having life insurance—and the dangers of not having it.

Unfortunately, confusion about some of the basic elements of owning life insurance may be keeping people from getting the protection they need. More than half of uninsured Americans say they have put off purchasing coverage because they don’t know what to buy or how much they need, according to Life Happens and LIMRA, two nonprofit organizations that provide research and education about life insurance.

Yet, while this confusion may be understandable, a delay in acquiring appropriate insurance can be costly in more ways than one. From a strict dollars-and-cents perspective, it’s generally much more affordable to buy life insurance when you’re younger. But there are potentially much greater costs involved in not having insurance when it’s needed — and these costs are personal.

To be specific, what is it worth:

 • To know your family could stay in your home if something happened to you?

 • To know your children could continue their education plans?

 • To know your debts could be paid without burdening your family?

By Jill nagy

Don Ferlazzo opened a new independent insurance agency in August in Clifton Park. 

Foursurance Agency  LLC provides insurance for anything with four wheels, four walls and even four paws, Ferlazzo said. 

“There are a lot of fours in life that need protecting,” he said, adding he wants to be people’s “forever agency.”

Located at 1673 Route 9 in the Healthplex Fitness office complex. It is in Clifton Park but has a Halfmoon mailing address. 

Formerly employed by a single insurance company, Ferlazzo now sells policies from 15 carriers. He said his client base stretches across the Capital District.

Basically, the company handles auto, home and life insurance.

By Renee Walrath

If the past few years have taught us anything it would have to be that life is ever-changing and situations can change at the drop of a hat. Benefits have shifted from being just part of an employment compensation package to a focal point of employment and a draw for top-tier talent. 

Companies are continuously looking to attain strong employees yet are struggling because valuable workers are fleeing to seek other options with stronger compensation. Often a potential employee will be willing to take a salary decrease if the benefits package is more robust with a higher employee contribution. 

When interviewing, be open and communicative with interviewees. Be clear about your company’s contributions toward health insurance. If a potential employee does not ask, inform them if they will receive health benefits right away or if there is a waiting period. Either way, offering health coverage shows employees your company cares are invested in them. 

Employees are more likely to accept a position and remain with a company that provides them with excellent health benefits. This in turn, increases employee retention and reduces costs for companies. With less turnover, companies do not have to continually recruit, onboard, and train new employees. 

On top of offering health insurance, ensure that your interviewees are aware of your company’s policy on accumulating paid time off (PTO) days, sick days, vacation days, and holidays. These benefits can sometimes be just as important to a potential employee as health coverage and is often a deciding factor in accepting a position.