Business Services

Crafting solutions that safeguard both your business and your workforce.

What are Business Insurances?

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At Hoskins Wealth Advisors, we offer tailored business insurance solutions focusing on life and health coverage, including key-person insurance to protect your company from the financial impact of losing crucial employees, and cross-buyout insurance to facilitate smooth ownership transitions in the event of a partner's departure. Our health insurance plans ensure comprehensive medical care for your team, while our life insurance offerings provide security for employees' families. Use the navigation bar on the left to learn about the different business services we offer.

Group Life

Group life insurance is a type of life insurance offered by an employer to all eligible employees as part of their benefits package. It provides a lump-sum payment to the beneficiaries of an employee who passes away while covered by the policy. Essentially, it's a way for companies to provide their workers with an added layer of financial security for their families in case something happens to them. This coverage is typically more affordable than individual life insurance policies and can help give employees peace of mind knowing that their loved ones will receive financial support if they’re no longer around.

Types of Group Life Insurance

Group Life Insurance, much like many insurances businesses have for their employees, typically comes in two forms: contributory and non-contributory.

In a contributory group life insurance plan, both the employer and the employees share the cost of the premiums. Employees usually contribute a portion of their salary towards the insurance, while the employer covers the remaining amount. This type of plan often allows employees to choose additional coverage beyond the basic level provided.

In a noncontributory group life insurance plan, the employer pays the entire premium, and employees do not have to contribute financially. This type of plan is typically part of the overall benefits package provided to employees, offering a set amount of coverage without any cost to them. Noncontributory plans are often used as a way to attract and retain talent by providing valuable benefits at no extra cost to the employees.

Both plans have tax implications for your business and its employees which we are more than happy to go over in detail with you as each situation is unique. In general though, the portion you as a business owner pay towards an employees plan is considered a tax write off as a business expense.

Why Should I Have Group Life Insurance?

Businesses should consider having group life insurance as it provides significant benefits for both the company and its employees. Group life insurance offers financial security to employees' families in the event of an employee's death, which can enhance employee morale and loyalty. It acts as a valuable part of the benefits package, helping attract and retain top talent by demonstrating the company’s commitment to their well-being. Additionally, group life insurance is typically more affordable for employers compared to individual policies due to lower group rates and can be a tax-deductible expense. This coverage not only supports employees and their families during difficult times but also strengthens the overall stability and attractiveness of the company.

Group Health

Group health insurance is a type of medical coverage provided by an employer to its employees as part of their benefits package. It offers access to healthcare services, such as doctor visits, hospital stays, and prescription medications, at a reduced cost compared to individual health plans. The employer typically covers a portion of the premium, making it more affordable for employees. This type of insurance helps ensure that employees can receive necessary medical care, promoting their overall health and well-being. Additionally, having group health insurance can attract and retain talented employees, as it demonstrates the employer’s investment in their team’s health.

Types of Group Life Insurance

Group health insurance, like many employee benefits, typically comes in two forms: contributory and noncontributory.

In a contributory group health insurance plan, both the employer and employees share the cost of the premiums. Employees contribute a portion of their salary towards the insurance, while the employer covers the remaining amount. This setup often allows employees to select additional coverage options beyond the basic plan.

In a noncontributory group health insurance plan, the employer pays the entire premium, and employees do not contribute financially. This plan is usually part of the overall benefits package, providing coverage at no cost to employees. Noncontributory plans are often used to attract and retain talent by offering valuable benefits without any expense to employees.

Both plans have tax implications for your business and employees, which we can discuss in detail to suit your unique situation. Generally, the portion you pay towards an employee's plan is considered a tax-deductible business expense.

Why Should I Have Group Life Insurance?

Businesses should consider offering group health insurance as it brings substantial advantages to both the company and its employees. Group health insurance ensures that employees have access to essential medical care, which can boost morale and productivity by reducing health-related absences. It serves as a crucial component of the benefits package, aiding in the attraction and retention of talented staff by showing the company’s dedication to their well-being. Additionally, group health insurance is often more cost-effective for employers due to lower group rates and can be a tax-deductible expense. This coverage not only promotes a healthier workforce but also enhances the company's overall reputation and competitiveness in the job market.

Cross-Buyout

Cross-buyout insurance is used in business partnerships to facilitate the purchase of a deceased or departing partner's share by the remaining partners. Each partner takes out a life insurance policy on the others, and in the event of a partner’s death or disability, the insurance payout provides the funds necessary for the surviving partners to buy out the affected partner’s share. A buy-sell agreement is established to outline the terms of the buyout process, ensuring business continuity and providing financial security for the affected partner’s heirs. This strategic approach ensures a smooth transition and maintains business stability.

Key Person

Key person insurance is a policy taken out by a business to protect against the financial loss that may occur if a key employee dies or becomes incapacitated. It provides financial protection by offsetting the costs of losing a crucial individual and helps maintain stability by covering expenses related to finding and training a replacement.

There are two main types: life insurance, which offers a payout upon the death of the insured key person to cover losses during the transition, and disability insurance, which provides benefits if the key person becomes unable to work, helping to cover salaries or hire temporary staff. The benefits include liquidity, providing immediate funds to manage disruptions; confidence, reassuring investors and stakeholders about the company's resilience; and succession planning, ensuring continuity in leadership and operations.

Key person insurance is essential for businesses that rely heavily on specific individuals for success and stability.

Business Overhead

Business overhead insurance is designed to cover the ongoing operating expenses of a business if the owner becomes disabled and cannot work. It helps cover fixed costs such as rent, utilities, salaries, and loan payments during the owner's disability, ensuring the business can continue operating without financial strain.

There are two types: Standard Overhead Insurance, which covers typical business expenses excluding the owner’s salary, and Extended Overhead Insurance, which may include additional benefits like covering temporary staff or additional training costs.

The benefits include maintaining the business's financial health during the owner's absence, preventing closure due to unmet expenses, and providing reassurance to employees and creditors. Business overhead insurance is crucial for small business owners to protect their operations during unforeseen disruptions.

Disability Insurances

1.Short-Term Disability Insurance

Coverage Period: Provides benefits for a short duration, typically 3-6 months.
Purpose: Covers temporary disabilities due to illness or injury.
Benefits: Replaces a portion of income, helping employees manage immediate financial needs.

2. Long-Term Disability Insurance

Coverage Period: Extends from several months to years, potentially up to retirement age.
Purpose: Supports employees with prolonged disabilities.
Benefits: Offers sustained income replacement, ensuring long-term financial security.

3. Business Overhead Expense Insurance

Coverage: Covers fixed business expenses if the owner becomes disabled.
Purpose: Ensures continuity by paying for operating costs like rent and salaries.
Benefits: Keeps the business running during the owner’s absence.

4. Key Person Disability Insurance

Coverage: Provides benefits if a key employee becomes disabled.
Purpose: Offsets financial losses related to the absence of a vital employee.
Benefits: Funds can be used to hire temporary replacements or cover losses.

5. Buy-Sell Disability Insurance

Coverage: Facilitates the purchase of a disabled partner’s share.
Purpose: Ensures a smooth transition and ownership continuity.
Benefits: Provides funds to buy out the disabled partner, maintaining business stability.

These insurance types help businesses manage risks and maintain operations despite employee disabilities.