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