Insurance Keeps a Business in the Family
Ernesto Hines
Insurance Keeps a Business in the Family Ernest “Peanut” Folks took great pride in the fact that his son, Ernesto, chose to follow in his footsteps. Peanut owned P&A Collision, an auto body repair shop, and his plan was to one day pass along the business to his son. Life insurance never factored into Peanut’s plan until an insurance professional called on him. Peanut became convinced he should protect the business and its 10 employees. Downturns in the business sometimes would make it hard for Peanut to make the monthly premium payment. He occasionally considered dropping the policy. Fortunately, his insurance professional, Jon Shoemaker, CLU, ChFC, LUTCF, understood how much he needed the coverage. When a payment was late, Jon would drive out to Peanut’s shop to pick up the check.
On one visit, Jon noticed Peanut didn’t look well and had lost weight. Soon afterward, Peanut got the worst possible news: He had an advanced stage of lung cancer. Doctors gave him just six months to live. The treatments that followed kept him away from work, and medical costs mounted. Fortunately, Jon knew a way to ease Peanut’s burdens. A provision in his policy called an accelerated death benefit allowed him to access a portion of the death benefit while he was still alive, given his terminal diagnosis. In the months before his death at age 49, Peanut was able to pay off his debts and turn the body shop over to Ernesto. “The early payment allowed him to transition the business without having to borrow money or pass the hat,” says Jon. “It allowed him to go out with dignity.”
As a business owner, you’re responsible for two families: the one you have at home and the one you have through work. That’s why it’s important to have life insurance coverage to protect both. Learn more at www.lifehappens.org/business. This piece has been reproduced with the permission of Life Happens, a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures. Life Happens does not endorse any insurance company, product or advisor. © Life Happens 2015. All rights reserved.
Watch Ernesto’s story at www.lifehappens.org/hines
Life Happens®, a nonprofit organization dedicated to helping consumers make smart insurance decisions, and used with permission. Foresters Life Insurance & Annuity Company (FLIAC) and The Independent Order of Foresters (IOF) are members of Life Happens®, and have paid Life Happens® for the use and distribution of this information. This is not intended to be a sponsorship, endorsement or testimonial by Life Happens® regarding FLIAC, IOF or their respective products and services. This article provides general information about life insurance and does not relate to any specific FLIAC or IOF life insurance product. Insurance policies contain certain exclusions, limitations and other terms for keeping them in force. For complete costs and details, see your Representative. Policy guarantees apply only to certain insurance features and are subject to the claims-paying ability and financial strength of the issuing company. Life insurance policies are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters. Variable life insurance policies are offered by prospectus only. For more information about variable life insurance policies issued by Foresters Life Insurance and Annuity Company, you may obtain a free prospectus by contacting your Representative, visiting foresters.com or calling 800 832 7783. The prospectus contains information about a policy’s features, risks, charges and expenses, and the investment objective and risks of the underlying investment subaccounts as well as other information about the variable life insurance policy. Consider this information, and read the prospectus carefully before you invest or send money. Policy availability and features may vary by state. The purchase of a variable universal life insurance policy is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any government agency. Neither Foresters Financial nor its Representatives offer tax, legal or estate planning services. Clients should contact their personal tax and legal advisers for any advice about estate planning or gifting. Should you require such services, you should consult a legal, tax or estate planning professional. Foresters Financial Services, Inc. (Foresters Financial) is a broker-dealer engaged in the sale of investment and insurance products. All investing involves risk, including the risk that you may lose money. Foresters Financial™ and Foresters™ are the trade names and trademarks of The Independent Order of Foresters, (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9) and its subsidiaries, including Foresters Financial Holding Company, Inc. (FFHC). Foresters Financial Services, Inc. is a registered broker-dealer and subsidiary of FFHC. All securities, life insurance and annuity products are offered through Foresters Financial Services, Inc. or independent producers. Life insurance and annuity products are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters.
Foresters Financial Services, Inc. | 40 Wall Street | New York, NY 10005 | 800 426 4026 | foresters.com 18-00486
Insurance Keeps a Business in the Family Ernest “Peanut” Folks took great pride in the fact that his son, Ernesto, chose to follow in his footsteps. Peanut owned P&A Collision, an auto body repair shop, and his plan was to one day pass along the business to his son. Life insurance never factored into Peanut’s plan until an insurance professional called on him. Peanut became convinced he should protect the business and its 10 employees. Downturns in the business sometimes would make it hard for Peanut to make the monthly premium payment. He occasionally considered dropping the policy. Fortunately, his insurance professional, Jon Shoemaker, CLU, ChFC, LUTCF, understood how much he needed the coverage. When a payment was late, Jon would drive out to Peanut’s shop to pick up the check.
On one visit, Jon noticed Peanut didn’t look well and had lost weight. Soon afterward, Peanut got the worst possible news: He had an advanced stage of lung cancer. Doctors gave him just six months to live. The treatments that followed kept him away from work, and medical costs mounted. Fortunately, Jon knew a way to ease Peanut’s burdens. A provision in his policy called an accelerated death benefit allowed him to access a portion of the death benefit while he was still alive, given his terminal diagnosis. In the months before his death at age 49, Peanut was able to pay off his debts and turn the body shop over to Ernesto. “The early payment allowed him to transition the business without having to borrow money or pass the hat,” says Jon. “It allowed him to go out with dignity.”
As a business owner, you’re responsible for two families: the one you have at home and the one you have through work. That’s why it’s important to have life insurance coverage to protect both. Learn more at www.lifehappens.org/business. This piece has been reproduced with the permission of Life Happens, a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures. Life Happens does not endorse any insurance company, product or advisor. © Life Happens 2015. All rights reserved.
Watch Ernesto’s story at www.lifehappens.org/hines
Life Happens®, a nonprofit organization dedicated to helping consumers make smart insurance decisions, and used with permission. Foresters Life Insurance & Annuity Company (FLIAC) and The Independent Order of Foresters (IOF) are members of Life Happens®, and have paid Life Happens® for the use and distribution of this information. This is not intended to be a sponsorship, endorsement or testimonial by Life Happens® regarding FLIAC, IOF or their respective products and services. This article provides general information about life insurance and does not relate to any specific FLIAC or IOF life insurance product. Insurance policies contain certain exclusions, limitations and other terms for keeping them in force. For complete costs and details, see your Representative. Policy guarantees apply only to certain insurance features and are subject to the claims-paying ability and financial strength of the issuing company. Life insurance policies are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters. Variable life insurance policies are offered by prospectus only. For more information about variable life insurance policies issued by Foresters Life Insurance and Annuity Company, you may obtain a free prospectus by contacting your Representative, visiting foresters.com or calling 800 832 7783. The prospectus contains information about a policy’s features, risks, charges and expenses, and the investment objective and risks of the underlying investment subaccounts as well as other information about the variable life insurance policy. Consider this information, and read the prospectus carefully before you invest or send money. Policy availability and features may vary by state. The purchase of a variable universal life insurance policy is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any government agency. Neither Foresters Financial nor its Representatives offer tax, legal or estate planning services. Clients should contact their personal tax and legal advisers for any advice about estate planning or gifting. Should you require such services, you should consult a legal, tax or estate planning professional. Foresters Financial Services, Inc. (Foresters Financial) is a broker-dealer engaged in the sale of investment and insurance products. All investing involves risk, including the risk that you may lose money. Foresters Financial™ and Foresters™ are the trade names and trademarks of The Independent Order of Foresters, (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9) and its subsidiaries, including Foresters Financial Holding Company, Inc. (FFHC). Foresters Financial Services, Inc. is a registered broker-dealer and subsidiary of FFHC. All securities, life insurance and annuity products are offered through Foresters Financial Services, Inc. or independent producers. Life insurance and annuity products are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters.
Foresters Financial Services, Inc. | 40 Wall Street | New York, NY 10005 | 800 426 4026 | foresters.com 18-00486
