I’ve spoke to business owners and farm owners alike. Here’s one thing I’ve found that a lot of them have in common; Buy/Sell agreements.

When there is more than one owner to a business or farm, usually there is an agreement stating that one owner will buy the other owners family out if the other partner dies. It sounds great on the surface. The problem with most of these agreements is that there is no money in the partnership to actually do it.

Consider this; If a business doesn’t have enough cash to pay off the family, what good is the agreement? The surviving owner now has some tough choices.

1. Go into business with the deceased owner’s hiers.

2. Sell enough assets of the business or farm to pay the other family off. (in the case of farms, this could be the very equipment used to run the farm

3. Take out a loan to pay the other family off. ( The bank may not loan it or the owner may not be able to make the payments)

4. Talk the other family into taking payments.

You can see why some very good, long standing businesses simply disappear.

Another very good option would be for the partners to have life insurance on one another. This would be a simple way for the surviving partner to keep the business in tact and pay off the family of the deceased.

This also works great for the children of a business owner. Some children help run the business and some have other careers. When the parents die, there are a number of opinions about what to do with the business. The children who have been running it usually want it to continue. The children who have other careers aren’t usually as concerned about the survival of the business as they are about “getting their share” of this asset. Life insurance purchased on the business owners, while they are still healthy, can keep the business, or farm, running and satisfy the rest of the family too.

This is one of my favorite parts of my business. It helps so many people.

If you or someone you know could use a plan like this, please give me a call at(231) 744-9099 or start by checking out www.muskegonlifeinsurance.com

For The Teenage Driver:
Teenagers are placed in a different category of drivers than their parents. When they are ready to be put on a policy, the auto insurer automatically assumes them to be a high risk driver due to their lack of experience. Don’t take personal offense because this is decided based on the statistics showing teenage drivers being involved in a high number of accidents. If anything, take responsibility and keep your driving record clean, which means free from accidents and traffic tickets. If you can manage to do this for three years, you will begin to see a decrease in your premium rates.

Something a teen driver can do is  to help pay for your part of the rates as a secondary driver. It becomes an expensive bill as more drivers are added to a policy and parents might offer more flexibility in their rules if they see you trying to make an adult-like effort and taking financial responsibility for your activities.

Showing them this process might have a lasting effect so when they are old enough to leave home and purchase their own car insurance policy, they will know just what to look for.

Look for a vehicle that is insurance friendly. It may not be the most popular car in the market, but an automobile that helps you get lower rates will be easier on your wallet. Vehicles that are a few years old, have safety features, and aren’t flashy sports cars will be your best bet. If you’re curious about which specific cars will help you save money, contact me and ask what rates Farm Bureau would charge for different cars. A young driver and a car that requires “full coverage insurance is the most expensive combination.

For The Parent:
Parents are always looking for ways to save money with their children’s endeavors, and saving on car insurance is nothing different. One way to help save on future premium hikes is to set an understanding with the teenager of what is expected, or rules that need to be followed and the consequences that will be experienced if they cause an accident or receive a traffic violation. Many of my clients warn that the child will get their own insurance if they get a ticket. It’s a great idea to bring your new potential driver in with you and let me help you educate them. on the rules of the road and the cost of driving poorly in the early years.

Some rules could include the specific hours the teen may drive (sun up to sun down), who is allowed in the vehicle when the teen drives, whether or not the radio or cell phone can be used while driving, or how many miles the teen is permitted to drive per week or month. These rules may only need to be enforced for the first year of driving or they may need to be in effect for longer, depending on the teen. As your child demonstrates an ability to follow your rules and state traffic laws, you can more easily trust their driving skills and lighten up on certain expectations. But, this doing is choice of the parent.

Another idea is to expect the teen to contribute in paying for part or all of the premium charges. Many parents require their teenagers to pay for their portion of the insurance rates before the policy period begins. This is another way to instill responsibility in the teen and help them understand the values of money and good coverage. It is less expensive to keep the teen driver on the parent’s policy and not create a new policy just for the teen, especially when they are listed as a secondary driver because their use of the car is limited by the parent.

For Both:
Working together as a parent and teen team is the best way to save money on car insurance for the teenager. Look us up to find the best premium by seeing what we’ll will offer. Start with calling me at (231) 744-9099. Or check out www.SteveBedgoodAgency.com.

Providing honest, accurate answers will ensure receiving an accurate quote that won’t change at the time of purchase (if you choose to make a purchase). This can even be done for teens who only have their driving permit and have some time before they turn 16 and are eligible for a license. These kids do need insurance and can be added as soon as their permit is qualified.

You’ll see that Farm Bureau Insurance has a strong financial status and great customer service rates. Write a list of the pros and cons of each policy, and then make a decision.

It could also be valuable to go through a couple things before the teen is allowed to drive. For instance, explaining what is and is not covered on your policy will help the teen better understand the estimated costs of repairs when damages occur. Also, go through the process of what should be done if the teen is involved in an accident, such as who should be called and what information will need to be given to the officer and other driver.

Auto insurance for teenagers can be quite expensive, but when there is a mutual understanding of what is expected between the parent and teen, a higher chance of saving money happens.

Check out www.muskegonautoinsurance.net