Is Commercial Insurance Required for Me?

If you own your own business in the Peoria, AZ area, you will want to make sure that you are following all of the rules and regulations that are set forth for you. One very important rule that you will need to follow is in regards to Insurance. Small business owners are often required to carry commercial insurance to cover their business and employees.  there are several situations that could indicate whether or not you need to have commercial insurance coverage in place.

If You Have a Loan
One situation in which having commercial insurance could be a requirement for your business is if you have taken out a loan. When a bank gives a loan to a company for any reason, they want to make sure that the company will be able to repay the loan. Because of this, they will want to make sure that you have plenty of insurance coverage in place in the event you are sued. The lender may also need to be named as an additional insured party. 

If You Have Employees Working for You
In the state of Arizona, business owners are also required by law to carry workers compensation Insurance. When you have workers compensation coverage in place, it will give insurance coverage to an employee in the result they are injured while working. This will ensure they receive the medical care that they need to recover from the injury. 

If you are looking to learn more about your commercial insurance requirements, you should contact the Schaller & Thomas Family Insurance company to learn more. The Schaller & Thomas Family Insurance company can help Peoria, AZ companies to find the perfect commercial insurance policy for their business and can provide a range of insurance consulting services.

Understanding Taxes and Life Insurance

It’s important to understand different tax implications when buying life insurance, so you can make the right decision for your current situation and your future. Discuss with your agent at Schaller & Thomas Family Insurance.

Taxes on Life Insurance Premiums

Unlike other purchases you make in Peoria, AZ, you don’t have to pay sales taxes on life insurance premiums.

Employer-Provided Life Insurance

When an employer provides life insurance, the IRS will consider it income, which means that the employee may have to pay taxes. An employee will only have to pay taxes up to a certain amount of coverage.

Prepaid Life Insurance

Certain policies will allow the policyholder to pay a premium with a lump sum up front. This money will then get applied to the premiums throughout the plan. The lump sum will grow due to interest, and that interest money is considered income by the IRS. This means that money can be taxed either when the money is applied to the premium, or if the policyholder withdraws some of the money.

Cash Value Plans

Whole life insurance plans can also accumulate cash value, and a portion of those dollars can accumulate interest. Since these plans can accumulate interest some people use them as investments, along with the benefit that if they have an untimely death, their family is protected. This interest is still considered income and has tax implications, and financial advisors will advise not to go this route because the returns are usually minimal compared to other investments. However, the policyholder doesn’t have to pay income tax each year as the plan grows. The whole life insurance policy is tax-deferred and taxes don’t have to be paid until the policy is cashed out.

Life insurance premiums are not tax deductible. While many health insurance plans can be deducted from federal income tax, life insurance premiums are considered a personal expense that cannot be deducted on a tax return.

Contact Schaller & Thomas Family Insurance serving Peoria, AZ for a quote on life insurance.