Insurance Reviews

Its important that you periodically have your auto insurance, home insurance and  business insurance reviewed by a professional.  At TDA in Novi, MI we will always provide anyone that is interested in a no obligation review of any or all of your insurance policies.  Just give us a call or visit our website and enter a request. 

We will take a look at your coverage and your budget and help you determine the coverage you need at  a cost you can afford. We will also compare your premiums to 10 Michigan auto insurance companies and 10 Michigan home insurance companies and 10 Michigan business insurance companies.

TDA specializes in serving the insurance needs of Novi and the surrounding Oakland, Livingston, Wayne, Washtenaw and Macomb counties.  Search for us at auto insurance Novi, MI or home insurance Novi, MI or business insurance Novi, MI.

What really matters

As the Thanksgiving Weekend comes to an end and we move into the holiday season. We should all reflect on what is really important to us. In my many years in the insurance business, I have met with thousands of people. When we discuss the topic of life insurance, people fall into three categories 1) They love their family and they want to use all of their reasonable means to make sure their family is taken care of in the event of  a premature death, 2) The next group of people have an unrealistic belief in how much money their family would need to live on in the event of a premature death, 3) The third group I classify as the people that don’t love their family and really don’t care what happens in the event of a premature death.

As an insurance professional you deal with these three groups differently, group 1, you focus on doing a thorough needs analysis and work with them to develop a plan within their budget. Group 2, you need to educate that $50,000 or $100,000 just won’t carry your family much further than final/funeral expense. Time is spent on educating them on what it takes per year to maintain a decent standard of living. The final group their is nothing much you can do to help until they figure out what really matters.

Most people are really nervous when they go to buy life insurance. One they are unsure of how much they need and two what kind of insurance they need. In short, they are afraid of being sold instead of buying insurance. To be honest, it really doesn’t matter what kind of insurance you buy, as long as you buy some kind of insurance. Deciding term, whole, universal, variable universal can be really confusing.  Some types of insurance are better fits then others for people, but this is a minor issue to the protection you are providing.

People should focus on buying the protection they need within a reasonable allocation of their budget. Most people need 7 to 10 times their annual income as a general rule of thumb. If budget is paramount, buy term.

In the end, love your family, protect what really matters and buy life insurance!

Don’t Sweat the Small Stuff with Insurance

We review hundreds of prospect’s auto, home and business insurance policies each month for appropriate coverage. It’s hard to believe the disservice the insurance industry as a whole has done to the typical consumer.  The average consumer understands deductibles and premiums. Based on working with insurance prospects and clients for over 15 years, very few understand that insurance is to protect you from catastrophic loss and financial ruin.  People and agents stay focused on whether they should have a $250 or $500 deductible and what the cost differential is. For most people $250 one way or the other will not create financial ruin.  These same people may have $50,000 or $100,000 in Liability coverage.  If you are sued for negligence in an auto, home or business accident and someone is permamently injured or dies, the jury awards in these cases can be in excess of $1 Million dollars. If you carry $100,000 liability, they are coming after your personal assets for $900,000.  This will create financial ruin for just about everyone.

We recommend that people carry enough liability to build a wall around their assets. Most people who own a home or a business should have Umbrella Liability Coverage. This is excess Liability coverage that sits on top of their underlying home, auto and business insurance policies. This coverage typically comes in $1 Million increments for about $150-$450 a year in annual premium. In addition to providing the excess coverage for damages, it also pays defense cost.  So far about the cost of 1-2 hours of an attorney’s time, you can have this extra piece of mind.  When people are concerned about the cost for the higher coverage, we often recommend they increase their deductible to offset the cost of the higher liability coverage.

A good agency, that isn’t just peddling policies and trying to compete on just price alone, will be concerned about your protection and offer these higher liability options to you.  Independent Agencies have the benefit of being able to shop many carriers to make sure you have the right price for the coverage you need, without having to call around to 10 different companies.

Don’t Sweat the small stuff, be concerned about your catastrophic coverage and not just your deductibles and premiums. Call a reputable agency today for a comprehensive review of your coverage.

Back To School

With the unfortunate event coming up later this month of students being forced to return to school.  It’s important for those that are about to gain more interdependence to remember not to forget the small details of getting their necessary insurance not just for themselves if need be but also for their electronics and transportation.  Whether it be for the long commute or the unforeseen event to a laptop.  University can be stressful enough with out not having the proper insurance to make it worse.
 
For the parents that can’t wait for school to begin, those that are dreading it. With the preparations that you may have been trying to make for your child to have the best advantage they can for when they go back to school. Amongst the items that you have been starting to stock up on, don’t forget to get the insurance whether it is for their car or to have certain items like a computer insured.

Many people are confused about the recent Health Care Reform changes……what they are and when they take effect. The earliest revisions take place September 23, 2010 and the latest go into effect January 2010.  In many cases, current plans in place prior to March 23, 2010 are grandfathered in and are not subject to some of the changes.

There are many details that are still be worked out. We recommend that you work with your current Health Insurance advisor or agent to make sure you are able to take full advantage of any enhancements. Some changes will happen automatically with your carrier, others will take place over time or when you make a plan change.

Whether you have a group or indivdual plan, a good agent or advisor should be reviewing and analyzing the market place each year for the best value or innovative plan designs such as H.S.A., H.R.A., Section 125 plans, etc. that can improve your plan and save you money.

Below is a brief summary of the health care changes being implement.

Health Care Reform Summary:

Extension of dependent coverage (9/23/2010)*

• Health insurance plans must offer coverage to dependents on their parents’ plan until the young adult turns 26.
• Coverage must be the same as for other dependents and can’t cost any more.

Preventive care coverage (9/23/2010)*

All private health plans must cover the costs for preventive care.
There can be no copays, deductibles or out-of-pocket fees for preventive services.

Lifetime and annual limits (phased in by 1/1/2014)*

• Lifetime limits on essential health benefits are no longer allowed.
• Restrictive annual limits on the dollar value of essential health benefits are allowed until 1/1/2014.
• Lifetime and annual limits continue to be allowed for non-essential health benefits.
• Individuals who reached their lifetime limit prior to 9/23/2010 and are still eligible for coverage must be notified that the lifetime limit no longer applies and their coverage can be reinstated

Pre-existing condition exclusions (phase in by 1/1/2014)*

• Children under 19 with pre-existing conditions can’t be denied health insurance.
• A health plan can’t exclude condition-specific benefits because the condition was present before the enrollment date.
• Those age 19 and over with pre-existing conditions can’t be denied coverage in plans renewing on and after 1/1/2014.

Rescission prohibition (9/23/2010)*

• Rescission is cancellation of coverage that has a retroactive effect. For example, if a plan voids a policy back to the policy’s effective date.
• Coverage may still be canceled or not renewed for these reasons: failure to pay premiums, fraud or intentional misrepresentation of material fact, withdrawal of product or issuer from market, movement of individual or group outside of service area, bona fide association coverage, cessation of association membership. This is not considered rescission.
• Plans must provide at least 30-days’ notice when canceling or rescinding coverage.

Emergency services coverage(9/23/10)*

• All health plans must cover emergency care at out-of-network hospitals at the same copay or coinsurance level as in-network hospitals.
• Health plans may no longer require prior authorization or a referral for emergency services.
• Out-of-network providers may balance bill the member for the amount charged that is above a “reasonable amount.” For this reason, it’s smart to seek services from an in-network emergency department when available.
• Services provided by out-of-network providers may also apply to a separate out-of-network deductible and out-of-pocket maximum.

Selection of primary care physician (9/23/2010)*

• Members can choose their own PCP (women can choose an OB/GYN and parents can choose a pediatrician for their children), as long as the doctor is accepting patients.
• If a plan requires a PCP, then it can’t require referral or authorization for a woman to seek care from an in-network OB/GYN specialist.
• The plan must provide a list of member rights with the summary plan description or summary of benefits.

Salary non-discrimination of benefits (9/23/2010)*

• Employers can’t offer better benefits to “highly compensated” employees at the top of the salary schedule.
• Health plans can require lower dollar or premium percent contribution from employees with lower compensation.
• Definition of highly compensated employees follows Section 105 of the Internal Revenue Code.
• Groups that establish simple cafeteria plans are exempt.

Early Retiree Reinsurance Program (ERRP) (expires 1/1/2014)*

• Employers that offer coverage for early retirees can apply to receive money back from the government for medical claims for early retirees who aren’t Medicare-eligible (age 55 to 64) and their spouses, surviving spouses and dependents.
• To be eligible, employers must have or plan to implement programs and procedures to help plan participants with chronic or high-cost conditions save money.
• Employers must use the money to reduce health care costs, lower participants’ premium contributions/copays/deductibles or both.
• Program runs from 6/1/2010 to 1/1/2014, but may end sooner when the program reaches its cap of $5 billion.

Small business tax credit (2010 tax year)*

• Small businesses can receive tax credits from the federal government to help make providing health insurance more affordable.
• Credits are available for an estimated 4 million businesses (including non-profits).
• Maximum credit is 35% for taxable employees and 25% for tax-exempt.
• Eligible employers must:
  • Pay at least 50% of the total premium costs
  • Employ fewer than 25 full-time equivalent employees
  • Pay average annual wages of less than $50,000

Tax treatment of OTC drugs (1/1/2011)*

Beginning 1/1/2011, pre-tax expenses for over-the-counter (OTC) drugs purchased through an HRA, FSA or HSA will require a doctor’s prescription. The sole exception is for insulin which will not require a prescription for reimbursement.

*May not apply to grandfathered plans that are already in place.

Michigan Summer Events

With summer being in full swing why not enjoy what Michigan has to offer, from it’s numerous beaches to historical landmarks.  Michigan has something for all ages.  For children you could visit the Detroit Zoo to visit a Wolverine or the Potter Park Zoo to ride a camel.  If you are looking for a different kind of Zoo why not try zip lining thru the John Ball Zoo.

For  couples why not enough a long walk on a  beach or an aireal veiw of  the Les Cheneaux Islands.  Or if  you enjoy  alternate ways of transportation why not take an escursion on the S.S Badger a car towing ferrie for a ride to the Crossroads Village and Huckleberry Railroad.  If the historical locations strike your fancy why not enjoy a  trip to the Henry Ford museum or “Hart Historic District”.   If your more intrested in going back in time why not visit Colonial Michilimackinac or Greenfeild Village  to experience a different way of life.

There is a the DIA (Detriot Instatue of Art) to give you a day of culture or on a rainy day. If you have more of a drive to be outdoors there are the Silver lake sand dunes and the Sleeping Bear dunes.  Michigan is also home to the largest freshwater shipwreck sanctuary with 200 located in Alpena.  Please remember to be safe this summer and make sure that before you leave your home and autos are properly covered for any type of mishap that may occur while you are away.

Graduation Party Umbrella Coverage

                With graduation season coming up many people will be having parties for their graduates at their houses.  There are many things that need to be in order before you get your party started: cleaning, food, drinks, etc.  There are also many things that could go wrong that you should also be prepared for.  So when you are preparing for you party don’t leave out your insurance, make sure you are properly insured to cover what ever may happen with an extension of your homeowners liability on an  Umbrella policy.

                Your homeowner’s liability covers injury or property damage to any third party when you are found negligent in your responsibilities as a homeowner. An umbrella policy or rider increases your liability coverage typically in $1 Million increments.  The umbrella policy will also drop down in some instances and cover other situations that may occur that your homeowners and auto policy do not cover.  Your liability and umbrella coverage will also pay for your legal defense cost even in the case of frivolous lawsuit.  An umbrella policy can be purchased for about the cost of 1 to 2 hours of an attorney’s hourly rate per year ($100-$300 per Million, annually).

                So whether your have a house guest that falls down your steps or injuries themselves in your pool, or has too much to drink and gets hurt and it results in a lawsuit. Your liability and umbrella policy will respond to defend you and even pay your damages up to the policy limits.  Financial Planners recommend that your total liability be equal or exceed your total net worth to provide adequate protection to your assets.

                If you would like more information please click on this link.

Farewell to Ernie Harwell One of a Kind

When the interrupted the hockey game the other night to announce that Ernie Harwell had passed away I instantly got a lump in my throat and a tear in my eye.  Myself and my family were fortunate to meet Ernie Harwell on several occasions.  Ernie and Lulu lived in Fox Run Senior apartments in Novi, MI.  My mother lived there before she passed away for about 4 years.  Being the good mother she was she had me over their meeting people and announcing to them that I was an Insurance Agent and they should buy their tenant and auto insurance from me. Afterall my agency was not far and I was over visiting Fox Run and my mother a few times a week and I could easily make house calls.

Almost every time we visited my Mother, she wanted us to eat in the dining room.  Almost every time we walked down there, we saw Ernie in one of two places.  Most frequently he was in the exercise room on the elliptical machine, pumping away at 90 years old.  The amazing man always took time to stop and talk with me and the kids.  He even remembered their names. I usually have trouble remembering my own kids names at half his age.

The other place we would see him was in the dining room. Again he always took time to stop by our table and talk to me and the boys.  One particular fond memory was when my Mother wanted to get the kids an Ernie Harwell signed baseball for their collection. She called Ernie on the phone and he invited her right up to his apartment and signed the baseballs. My Mother who loves to talk, probably spent an hour visiting with Ernie and Lulu.

My personal impression of Ernie was that he was one of a kind and truly genuine person.  He was a huge celebrity in the Detroit Area, yet he took time with not just us, but what seemed like every person he met to make them feel special and make them feel like they had been his friend for years.  What a truly amazing quality for an individual and an almost unheard of quality for a celebrity.  As I listened to sports radio the last couple of days, there was story after story of how each person that met him in passing had the similar experience as we did.  Again, I found myself welling up listening to all the stories.

As I reflect on my own life and how I treat people, I can certainly learn a few lessons from the master in personal relationships…Ernie.  Slow down, engage people, listen to them, make them feel special, be polite, remember them…….be genuine.  This came natural to Ernie. The rest of us have to work at it.  Here is a person that I talked with maybe 10 times and he has had a significant impact on my life experiences……and did you notice I never once mentioned his special talent of baseball announcing…..What a wonderful man….As Ernie would say we will miss him even when he is “Longggg Goneeee”.

Construction Season

Its getting to become everyone’s favorite time of the year: construction time! Cities will attempt to fill the ever-multiplying potholes. Potholes not only cause damage to your car, but also your wallet. Many insurance companies now consider hitting a pothole as an at-fault accident. Taking a ride over a pothole can also mean taking a ride to the bank to pay off a deductible and a higher insurance premium.

Classic Car Auction

With the RM’s Classic Car auction of Michigan that is happening April 24^th -25^th, cars like the 1948 Buick Roadmaster Sedan and the 1950 Willys Station Wagon will be making appearances.  Whether you’re doing your bidding at the auction or from the comfort of your own home, don’t forget to get your classic car properly insured.  We at TDA insurance with the help of Haggerty Insurance are located just down the street from the Classic Car auction. We can be of service to help you get the attention your car deserves when it comes to insurance.