Health Insurance Types – Cafeteria Plan

A cafeteria plan, also known as Section 125 of regulations of section 125 of the Internal Revenue Code is a separate written plan maintained by an employer, or maintained by a third party called a third party administrators. It is highly recommended that smaller companies desiring to offer such benefit plans use a TPA (Third Party Administrator) since the administration of such plans is not only intricate but, if mistakes and miss steps are made the fines for non compliance could be astronomical

However the plan is administrated it provides participants/ employees an opportunity to receive certain benefits on a pretax basis. Those who take advantage of a cafeteria plan must be permitted to choose among at least one taxable benefit (such as cash) and one qualified benefit.
We can best explain a "qualified benefit" is a benefit that does not defer compensation and is excludable from an employee's gross income under a specific provision of the Code, without being subject to the principles of constructive receipt. OK. Let me explain farther, Health insurance for the employee can be a "qualified benefit" give to the employee within the employee's compensation but not singled out and taxed. Other insurance products such as accident and health, adoption assistance, dependent care assistance, group-term life insurance coverage to limits and health savings accounts can be considered qualified.
Beware! Archer medical savings accounts or long-term care insurance may not be considered "qualified" and may have to be paid in "post tax" dollars

Every written plan must specifically describe all benefits and establish rules for eligibility and elections. A section 125 plan is the only means by which an employer can offer employees a choice between "taxable" and "nontaxable" benefits without the choice causing the benefits to become taxable. Employer contributions to the cafeteria plan are usually made pursuant to salary reduction agreements between the employer and the employee in which the employee agrees to contribute a portion of his or her salary on a pre-tax basis to pay for the qualified benefits. Let us here hive you an example. The employee is offered a bag of money; let's use $500 per month. The employee will not be taxed on that money because salary reduction contributions are not actually or constructively received by the participant. From that bag of money an employee may choose a selection of products to purchase, hence "cafeteria"

Cafeteria plans may make benefits available to employees, their spouses and dependents.
In some cases a plan may also allow inclusion coverage of former employees, but cannot exist for that purpose only. Although generally there is no filing requirement for a cafeteria plan we highly recommend use of a third party administrator to make sure strict compliance is adhered to.

By: Bradley Palmer

Home Insurance - Wannabe Chefs

You know what it’s like, you’ve seen your favourite chef on TV try something new on their program, and there’s that part of you that says to yourself “I could do that”
Indeed, according to a recent survey, over 62% of us prefer to cook while watching our favourite chefs on TV. Before you reach for the tenderizer and the sharp knives, think about the effect your culinary adventure could have on your…home insurance?

Yes, it may sound ridiculous, yet every year there are reports of wannabe chefs causing chaos in their own kitchens, which is leading to an increasing number of claims on their home insurance.
In fact, over 6 million people a year suffer injury or cause damage to their kitchens while trying out cookery techniques they’ve seen on television. Accidents can vary from slicing their fingers while trying to quickly chop to attempting to blowtorch the top of a crème brulee with a torch that, let’s face it, is better suited for when you’re looking to do some plumbing.

According to research carried out by a leading home insurance provider, wannabe chefs are costing the industry approximately £5 billion in household damages, and for those who don’t have house insurance this can be a very costly venture in the kitchen. Three-quarters of those surveyed said they would still attempt complex cooking techniques even though they described their cooking skill levels as ‘average’ or ‘novice’.

Worryingly, over 85% of respondents said they leave their kitchens unattended while they check the television, with a further 10% injuring themselves in the mad dash to keep up with the recipe. Damage can range from watermark damage caused by steam, crack and chips on surfaces as a result of adventures in tenderising and personal injuries, usually involving a knife or hot pan handle. In addition, over 70% of those surveyed do not keep a fire extinguisher handy, whilst a quarter of those who had accidents have caused damage to themselves or their appliances. The advice from the industry appears to be not to try anything too complex, regardless of your ability level, and to ensure that your house insurance policy includes some form of accidental damage cover alongside your buildings and contents to cover those little accidents in the kitchen.

By: D Collins

Life Insurance Quote

Some people tend to think that insurance is more of a gambling game and they fear becoming a victim. However this could be true but definitely a misconception to some extent because insurance should not be generalized. Life insurance quote is not for the dead but for those who are living and therefore since no one will live in this world like a rock, it is important to ask yourself how you will leave your family or business if you died. I know that you definitely would not like to leave them with any financial crisis which is why insurance policies exist in the first place.

Today many people have embarked on this sort of business of Insurance, and they are enthusiastic to helping people find the best life insurance quote for their families and businesses. Remember you do not only take life insurance policies for yourself but for your beneficiaries too and this offers a peace of mind for you. Life insurance policy is divided into maturity terms/ endowment policy or death/whole life policy claims. For maturity term, one buys insurance premiums for a number of years and when this expires one returns the policy documents, signs a discharge form and them collects his claims benefits.

On the other hand, the death claim premiums are paid indefinitely or until one dies and then the beneficiaries collect the claim benefits. The life insurer only requires them to have paid the all the premiums up to date, provide original copy of death certificate, burial permit, a copy of the diseased identity card and a doctors report about the cause of his death. The choice concerning which among the two to buy is left to the buyer. Remember when you buy any life insurance policy or just any kind of insurance you are referred to as the insured while the company you are buying from becomes the insurer. The thing for which you enter in to contract with the insurer is the policy while the monthly whatever installment you pay thereof is called the premium.

The premium paid for life insurance quote depends on the material information provided to the insurer which indicates the financial strength of the insured hence offering the compatible "consideration". Also the period after which one is supposed to pay and how to do this depends with the insurer and they concur with the insured. if you opt for endowment policy, then it perhaps you are planning to put some investment later after receiving the claims benefits. You are the first hand beneficiary not unless you die before the expiry of the term and if not, then you will have savings after all to put in your own pocket. Conversely, the life insurance policy, the significant others in your life take advantage of your outcome after you pass on.

So for the choice as to which one between the life insurance quote to pick should entirely correspond to your objectives. Again you should approach insurance brokers so they can help you to purchase the best life policy in complete reference to your goals in terms of how much to pay and the other terms and conditions necessary. He is the best intermediary you could have to negotiate these terms on your behalf. Get your quote now and apply online.

By: poly

Term Life Insurance 2

Choosing the right policy can be a confusing process.
Some questions you should ask yourself are:
- Will the policy meet my current needs?
- Will the policy provide the flexibility to meet my future needs?
- What does the policy cost––both current and expected lifetime costs?
- Is the provider established and financially strong?
- Will the company back its guarantees?
Insurers offer two life insurance categories for you to choose from: term and permanent insurance. Both can be tailored to meet your financial needs.

Term Life Insurance
If you’re looking for basic insurance coverage for a specific period of time, term insurance is a good place to start. It’s a cost-effective and simple plan, with some flexibility to adapt to your long-term goals. Over time, your needs may change. Term life insurance can evolve with your needs by providing options to lengthen your coverage period or even to transfer to a permanent life insurance solution.
Permanent Life Insurance
If your financial objectives include more than basic insurance coverage, you may benefit from this option’s added investment potential. Permanent insurance solutions allow you to insure against the unexpected while increasing the value of your investment over time. Plans are flexible and can be tailored to the level of investment potential and insurance coverage to meet your personal financial goals. You can also select a plan that gradually minimizes insurance coverage so you can maximize your policy’s investment potential.

Term Life Insurance 1

It’s difficult to imagine needing personal life insurance while you’re young and in good health. But, if anything should happen to you, it can help protect your spouse, loved ones and estate. Some personal life insurance policies can also offer you access to funding during your life, such as for buying a home or educating your children.
What is Life Insurance?
Life insurance is a contract with an insurer, that promises a set amount of money will be given to your beneficiary upon your death. Your benefit amount depends upon many factors including the policy you choose, your age, sex and health, and the amount of premium you pay. These are the types of details you’ll discuss with an advisor so that the right policy can be selected by you, from those with fixed coverage and specific terms to those with greater flexibility.
Why Do You Need Life Insurance?
Life insurance can give you peace of mind knowing that, if something should happen to you, your loved ones won’t be left with a legacy of debt, final taxes or other money worries. Certain life events might cause you to re-evaluate your financial goals and consider the protection life insurance can provide. Some of these include getting married, buying a home, having children or planning for your retirement. With an appropriate plan, life insurance can help you meet your goals in life and protect your family when you no longer can.
As well, certain business situations call for life insurance. If you’re an entrepreneur or just starting a business you’ll need to protect your enterprise and any partners. A uniquely tailored insurance solution can also provide the money necessary to enable your fellow shareholders or partners to buy you out when you’re ready to retire.

Life insurance

Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.
Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kinds of actuarial and investment management expertise that life insurance requires. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance and, from an underwriting perspective, are the mirror image of life insurance.
Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed.
In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.
In U.S., the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation. A combination of low-cost term life insurance and a higher-return tax-efficient retirement account may achieve better investment return.