More than a Safety Net: The Financial Advantages of a Life Insurance Policy

FMT provides comprehensive home and property insurance to homeowners throughout Tennessee. While discussing your insurance needs, ask your independent agent about life insurance.

If you believe that life insurance is nothing more than a necessary evil, an unwanted expense with negative connotations, then it’s time to have a nice long talk with your insurance agent. A life insurance policy is a safety net, an investment in your family’s financial well-being, but it’s much more than that. It’s also a financial asset, a source of revenue and retirement income and a means of protecting your wealth that goes well beyond protection. A life insurance policy can also be a hedge against potentially crippling medical and care expenses, so it’s wise to be insured… for lots of good reasons.

A Tax-Free Investment

When it comes to life insurance, the Income Tax Act is your friend. That’s because it allows premiums paid into whole and universal life insurance, both of which are considered exempt, to accumulate as tax-sheltered cash or savings. This can be a nice investment option if you’re looking for new ways to protect your income from taxation. Additionally, your policy benefits and accumulated savings can be paid out to beneficiaries or your estate tax-free.

Sell It

Many people are unaware that they have the option to sell a life insurance policy once they reach the age of 65. This is an important point to consider because your health insurance may not cover the cost of healthcare and long-term care. Selling a policy can also free up badly needed revenue for retirement living expenses. It may be wise to consider a long-term care policy as well to make sure to fill the coverage gaps since you’ll likely face out-of-pocket expenses. Just bear in mind you’re apt to pay less for a long-term care policy if you buy in your mid-50s to early 60s.

Wealth Protection

A life insurance policy can also help preserve wealth if your beneficiaries are unable to cover your debt obligations after your death. In such a situation, survivors often have no recourse but to sell property or business assets to pay leftover debt and, in extreme situations, they may be forced to do so at a discounted rate. The insurance benefits that go directly to your survivors can be used for liquidity to prevent the loss of such assets. This is especially important considering that when you die, the capital gains accumulated on unsheltered assets automatically kick in, which means your family could end up holding the bag for an estate tax bill owed to Uncle Sam.

A Source of Income

An insurance policy with cash value can be used as an income supplement or to provide liquidity in the face of unexpected expenses. This can be done in several ways. One way is to use a policy as collateral for a loan from your bank or other financial organization. The nice thing about this options is that the money is tax-free, though you remain responsible for the loan payments as you would in any other financial borrowing situation. You can also borrow directly from your insurance company via your policy. The funds you borrow are tax-free as long as the amount you borrow does not exceed the amount computed by adding all your premiums and subtracted the net cost of the policy. Essentially, this amounts to borrowing against your death benefit. Or, you could simply make a cash withdrawal from your policy, though the amount you withdraw will likely be subtracted from your death benefit.

If you’re unaware of the many financial and tax advantages of a life insurance policy, consult with an agent or financial planner to strategize how you can best make use of such an asset. It gives you a degree of flexibility and tax-exempt protection that can often be difficult to find.

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How Baby Boomers Can Save for the Future While Enjoying Life Today

Hard times are unavoidable in this life. As the old saying goes, we all face our share of troubles, such as death, dying, and taxes. As unfortunate as that knowledge might be, the good news is that our fear of the inevitable doesn’t have to spell an end of the ability to enjoy ourselves.

Baby Boomers are so focused on being frugal that they are forgetting to enjoy their Golden Years. The recession made a dent in the financial wealth of many Boomers, creating higher mortgage debts than previous generations have had to deal with. This has led to many retirees having to cancel their plans to move to the beach and simply stay put in their family home instead. Meanwhile, many people are postponing retirement altogether and continuing to work.

Sure, there is certainly something to be said for living frugally. However, despite reports that frugality can contribute to happiness and optimism among aging generations, these difficult financial decisions can also cause one’s golden years to feel a little less bright. Therefore, it’s important to find a balance between preparing for the worst and living a full and enjoyable life. Some people spend so much time saving for a rainy day that they begin to feel unfulfilled, like life is slipping by without them being able to truly enjoy it.

Tips for Living Your Best Life at Any Age

 If any of this sounds familiar, here are some of some tips on how to be frugal while still enjoying yourself and living your best life at any age.

Rethink the Vacation

Remember in the good old days when going for a joyride was a great way to spend an afternoon? That day can be today, too. Who said a weekend trip had to involve a flight or an RV? Who said a vacation had to include a cruise to an exotic destination? Think outside the box for some affordable joy and nostalgia. You might reinvent one of your favorite trips from your youth. Or, you could consider taking a car tripinstead of a cruise. If you have a credit card, see if your purchases help you earn travel points toward free trips. There are many ways to save money while still making time for travel and vacations.

Invest in Your Health

As we age, one of the main concerns is our health. Many seniors are worried about their health, and it’s no wonder why. Recent research has estimated that one in three American seniors will experience a disability that requires long-term care. The uncertain future of health insurance, Medicare, and Medicaid are only adding to the stress, with a majority of seniors saying they are “nervous about the future of their health care.”

If you’re one of the many seniors who don’t have health insurance coverage, the statistics surrounding senior health can sound grim at best. Of course, it’s completely understandable that you would think ahead about your long-term healthand how to save up for any unexpected emergencies or medical bills. In addition to insurance coverage, there are also some options that you might consider for funding your own private, long-term health care as you age.

For instance, a Medicaid life settlement might work as a viable option. In fact, many states have recently passed laws protecting seniors. Under the new laws, seniors who are eligible for Medicaid no longer must surrender or lapse their policies in order to enter a Medicaid life settlement, making it a feasible way to finance medical care later in life.

Enjoy Your Golden Years

As you can see, there are many ways to save money during retirement while also enjoying the most wonderful years of your life. What are you waiting for? It’s time to live it up. By mindfully watching your spending habits while also incorporating some of the expert tips listed above, you can make the most of your golden years while still saving money for a rainy day.

Jim McKinley is a retired banker with a passion for helping others make the most of their hard-earned money. It is this passion that inspired him to start Money With Jim| Moneywithjim.org | [email protected]

Rich Insurance History

 Dickey McCay Insurance Agency is located in downtown Copperhill, Tennessee. With a rich history going back to the days of mining, railway, and beautiful blue ridge mountain heritage, an agency was formed in 1929 to help insure and protect the people and community.  In 1950, an individual by the name of William Rymer purchased the insurance agency.  He was a caring, customer oriented and community minded person who was very ethical in his business dealings.  This was important as he built his insurance business to promote integrity, community and support. Mr. Rymer cared for the people of Copperhill, Tennessee and surrounding area as he wanted the best for them and their families.  He understood the insurance industry and wanted to make sure those he cared about had the protection they needed as they worked hard for their money.

In early 2000, Mark Brooks and Leland Rymer purchased the agency from Mr Rymer and expanded upon on his vision of excellence by continuing to offer quality insurance and enhancing the product line to promote the integrity, care, and support Mr. William Rymer worked so hard to create over the years.  After sixteen (16) years of working together, Leland Rymer handed over the reigns to Mark, his business partner.  In 2016, Mark became the sole owner of Dickey McCay Insurance agency.  Over their sixteen (16) years of working together, Mark Brooks was instrumental in growing the agency by adding new insurance companies to offer valued products and services, educating their agents, valued clients and new customers while continuing to offer and add the best products and services at affordable and valued market pricing, and supporting the local and area community by participating in fund raising and charity events to help others. Mr. Brooks and his insurance team (administrative staff, managers, underwriters, accountant, insurance agents, etc.) believe it is important to give back to your community though the support of different events and activities such as the support of local schools with donations to various clubs and programs. Dickey McCay provides a happy Christmas experience to children in their local elementary schools that might otherwise not receive gifts. Also, various staff members coach youth softball teams, is active in the Fannin County Chamber of Commerce, involved in their local dirt track in Blue Ridge, and individual churches in various capacities. Yes, they truly do live by the motto, “We live, work and play” in the same places you do, so your life and well-being matters to us.

Since 2000, the agency has grown from a $1,000,000 size insurance agency to a $10,000,000 size insurance agency which means that Dickey McCay is continuing to grow and offer more products and services to the local community of Copperhill, McCaysville, and Tellico Plains, Tennessee to the surrounding areas of the Tri-State area such as Blue Ridge, Georgia, Murphy, North Carolina, Andrews, North Carolina, Blairsville, Georgia and down as far as the Atlanta, Georgia. The company can write insurance policies in Tennessee, Georgia, North Carolina, Alabama, Kentucky, Mississippi, and South Carolina.  If you have commercial lines of business or personal insurance needs, the company is expansive and can handle most small, medium and large business and personal insurance protection support.

Insurance Agency Expertise and Dedication

With its dedication and expertise, Dickey McCay Insurance has become a trusted and valued source for auto insurance, homeowners insurance, flood insurance,renters insurance, personal articles and marine inland insurance,business owners policies, cyber insurance, general liability insurance, workers compensation insurance, individual life insurance, individual and family health insurance, and group benefits such as group health insurance and group life insurance. When it comes down to it, insurance is all about people and protection, and at Dickey McCay they are there to serve their customer (you)to ensure the right product and service is provided at the lowest cost available.

Dickey McCay Hours of Operation

 As for service tools and resources to support their existing clients, new customers, and ensure the best service, Dickey McCay business hours are Monday-Friday 8:30 am to 4:45 pm, and on Saturday 9 am to 12 pm. This allows for their customers who are not able to visit any of their office locations through the week, the ability to visit them on Saturday.  They have a website (www.dickeymccay.com) which allows you to communicate with them, get to important information through their valued Internet links, or find valued information or resources you need. In addition, they offer multiple payment options to their customers, which include a client portal that allows 24/7 (24 hours a day and 7 days a week) customer access to your insurance information such as insurance cards, coverage information, etc.  Also, they have just introduced (launched) a new mobile app that allows you to file a claim, make a payment and complete other options to make doing business with them easier.

The goals of the Dickey McCay Insurance agency are to grow with new producers (insurance companies), double our production with our current staff, and in the near future, they would like to acquire a new location in a different geographic area to support their growing base of customers.  Their number one focus is to provide value-added services to their customer every time to ensure they are getting what they want when they need it and have the right coverage to be fully protected.

Farmers Mutual of Tennessee (FMT)

An example of a valued producer for Dickey McCay is their partnership with FMT (Farmers Mutual of Tennessee) as they allow us to offer additional options for customers who have homes in Tennessee. The underwriters are very easy to work with and provide excellent customer service.  Our motto is “We live where you live” and Farmers Mutual allows us to provide coverage to our customers in our very rural areas.  Without a super relationship like FMT, we couldn’t offer the different options for different clients across our geographic area of the Tri-State (Tennessee, Georgia and North Carolina).  Farmers Mutual of Tennessee is an excellent company with a great reputation of providing excellent products, services and support for our customers, which aligns with our core values.

Insurance Commitment and Value

In closing, Dickey McCay’s daily commitment and dedication to their customers sets them apart from their competition. They strive daily to provide the best customer service to each and every customer. They also have a wide variety of companies so they are able to offer varied levels of coverage depending on your need. Our agents are highly educated to be able to provide the best advice for our customer’s insurance needs.  If you have any questions regarding auto insurance, homeowners insurance, commercial or business insurance, flood, cyber, personal liability insurance or health insurance, Dickey McCay Insurance can help answer your questions and get you the support you need at the right price.  You can find them on the web at www.dickeymccay.comor call them toll-free at (855) 876-9779.

The fine people at Dickey McCay would enjoy hearing from you and will be glad to travel to meet with you if you can’t get in to see them.

Make it a great day!

Dickey McCay Insurance Team

Prepare Your Home for Winter and Prevent Claims

Fall in Tennessee is a wonderful time of the year. At the same time, the beautiful orange, red and yellow leaves on the trees remind us that winter is just around the corner. Freezing temperatures, ice, and snow can cause major damage to your home and other property. Fortunately, you can avoid much of the hassle and expense of damage by performing some basic maintenance before winter arrives and avoid a homeowners insurance claim.

5 Home Maintenance Tips to Prepare for Winter

1. Have the Furnace Checked

A furnace that operates inefficiently consumes excess fuel and produces dangerous gases like carbon monoxide. To reduce utility bills and keep your family warm and safe, change filters regularly and schedule a service check-up with a reliable HVAC company before the temperatures drop. Also, if you have a wood burning fireplace or stove, it is a good idea to have your chimney flue professionally cleaned and maintained to get rid of dangerous, combustible creosote build-up.

2. Remove Dead Trees and Overhanging Limbs

Dead or dying trees and overhanging limbs paired with heavy snow or ice and high winds are a home insurance nightmare. If a branch falls, it could cause serious injuries or property damage. Before a limb plummets onto the neighbor’s car or crashes through your garage roof, have a professional arborist examine the tree and remove the threat.

3. Bring Hoses in From Outside

Garden hoses are not durable enough to withstand freezing temperatures and harsh elements. Also, leaving them attached may cause damage to inside pipes from freezing. Detach the hoses from the exterior faucets, drain them of water, and store them in the basement or garage until spring.

4. Winterize Exterior Faucets & Pipes

After removing hoses, shut off the water lines inside the house that feed exterior faucets and pipes and open the valves to drain any remaining water. Apply winter covers—available at any hardware store—to the knobs and faucets, and insulate any pipes that run along exterior walls or through unheated areas of the house.

5. Clear Gutters

Rain gutters should be free of leaves and debris so melting ice and snow does not find its way into your home. Otherwise, water can accumulate in the congested troughs and form dangerous destructive ice dams. Clean the gutters and make sure downspouts are not clogged. While you’re checking and cleaning your gutters, look for and repair any missing shingles or nails sticking up that may also allow melting ice and snow to leak into your home.

By following these suggestions, you may be able to avoid damages that could result in a large homeowners insurance claim. For more information on protecting your property, speak with your local independent agent or contact Farmers Mutual of Tennessee online or call (800) 824-9555 to speak with one of our representatives.

Since 1913, Farmers Mutual of Tennessee has been providing quality insurance coverage at an affordable price. 

Water Damage: How to Prevent It

Homeowners Inspection Checklist

Each year, our policyholders suffer from thousands of dollars in water losses due to rusted out water heaters, worn out washing machines and dishwasher hoses, and bad ice maker connections. Many of these losses can be prevented by making a few quick and simple checks around the home.

One of the main sources of water leaks is the water heater. Look around the case of your water heater for rust spots and seepage. If you have a drip pan, make sure it is properly installed and is not full.

Another area to keep an eye on is your washing machine. Check your washer hoses and their connections. The rubber should be soft and the connections should show no signs of seepage. To be safe, we recommend that you replace your washer hoses every six years.

The kitchen also has appliances prone to leak. Check for seepage or leakage around your dishwasher and ice maker connections. Most of these are found under the sink. Look behind the refrigerator at the ice maker lines. Check for leaks, good connections, and the condition of the plastic lines. If the lines are discolored or cracked, then it needs to be replaced. Look under your kitchen sink to make sure nothing appears to be leaking.

For added protection, consider investing a little extra money in high PSI braided stainless steel hoses as well as water leak detectors. Also, keep an eye on your water bill. If your usage increases without explanation, it may mean that there is a leak somewhere in your home.

6-Month Inspection Checklist:

✅  Look at water heater for rust spots or seepage
✅  Check washer hoses and connections
✅  Check dishwasher connection for seepage and leakage (usually under the sink)
✅  Check ice maker connection (usually under the sink)
✅  Check the ice maker line behind the refrigerator

If you do incur water damage, please contact your FMT agent as soon as possible or call us at 800-824-9555. Please note that not all policies have coverage for water damage and coverage will depend on the type of loss (repeated or continuous damage is probably excluded). Check out upcoming articles for more information about types of water damage and what to do if you have a water damage loss!

Dryer Safety

By Charles Coones, Forensic Investigations and Technologies

We are fully into the fire season and fires are often the leading story on the evening news.  We typically assume that the start of heating season coincides with the start of fire season and therefore heating systems are a large cause of the residential fires we all see.

However, the largest residential fire hazard is with us throughout the year and you probably pass by it daily.  It is your clothes dryer.  FEMA reports that over the three years 2008-2010, almost 83% of residential structure fires started in the laundry room.   In those cases, 92% of the fires originated in the dryer.

Here are some interesting facts:

1.  Gas or electric dryers: makes no difference.  The incidence of fire is about the same.
2.  Over a third of these fires are reported between 12PM and 7PM.
3.  Dryer fires are reported throughout the year, but almost 40% occur November -February.
4.  About 34% of the fires were related to a failure to clean
5.  Interestingly, it is almost a dead heat between what ignites first – the dust and lint or the clothes in the drum.  We investigate a lot of fires where the fire starts in the drum of the dryer.

Ignition of clothing can be due to placing improper items in the dryer (don’t dry your flip-flops) or spontaneous ignition of the clothing.  Clothing can spontaneously ignite inside or outside the dryer after the clothes have been dried and removed.  Note we see many fires in commercial laundries that occur in clothing that has been dried and piled or stacked together.  Research into these spontaneous ignition fires finds that most often a contaminant, such as vegetable oil or a petroleum product, had soaked into the clothing/towels/rags.

These contaminants can exhibit self heating, especially where they are heated in dryers in placed in piles where the heat generated by the decomposition of the materials cannot be dissipated.  Linseed oil is often described as the cause of self-heating fires, but cooking oils (such as sunflower, olive, or canola),  massage oils, and petroleum products can also exhibit self-heating behavior.   These contaminants are not well removed by standard washing machines.  Testing by Fire Findings found that after three hot water washes, vegetable oil remains in typical towels.

So, what do we do?

1. Ensure that dryers are only used when the house is occupied.  Strong odors from the dryer are indicative of the start of a fire.  Turn the dryer off and call the fire department.  Do not open the dryer.
2. The Building Code requires that dryer vents be of limited length (including bends) and discharge directly outside.  Most dryer manufacturers and the Code require that dryer vents be rigid or corrugated metal.
3. Remove lint before each load of laundry and clean the vent and the interior of the dryer periodically; two year intervals is recommended.
4. Promptly remove dried clothing and separate. Do not place or pile recently dried clothing into plastic bags, hampers or carts.
5.  Use disposable towels in the kitchen or when working on the car.  Dispose of these in metal containers with tight fitting or “flame out” lids.
6.  You can always use clothes lines instead of dryers.  I have yet to investigate a clothes line fire.

What is the Difference Between ACV and RCV?

This is a type of question that people usually only think about once they have a monetary or significant loss. However, it is important to research these things before selecting home insurance coverage and to know what type of insurance policy you have along with the benefits for the homeowner or individual seeking coverage. ACV (Actual Cash Value) and RCV (Replacement Cost Value) are two different methods of determining the value of a covered loss.

This centers around the fact that homes, like almost everything in life, lose value over time. A roof wears out, flooring gets stained and scuffed, and paint needs an extra coat. Whether it’s something expected to last a long time like framing, or less time like an HVAC unit, every aspect of your home is expected to wear out eventually. And some policies factor the age and lifespan into the value of lost or damaged items when determining a settlement amount.

Actual cash value is defined as “The amount which it would cost to repair or replace covered property with material of like kind and quality, less allowance for physical deterioration and depreciation including obsolescence, and wear and tear.” This means that older and more deteriorated items will be settled at a lower amount than newer ones.

ACV policies are settled by starting with the replacement cost and then subtracting the deductible and depreciation. Below is an example:

Replacement Cost Value policies, however, also pay the amount of depreciation. In most cases, FMT will make an initial payment that is the ACV amount, but once they get verification that the work has been completed (usually by a Contractor’s Completion or a Certificate of Completion sent along with photos of the completed work), we release another payment for the amount of depreciation that was initially subtracted. This is called “recoverable depreciation.”

If you are not sure which type of policy you have, we recommend that you reach out to your local agent or call FMT Insurance at 1-800-824-9555.  At FMT, we have trained insurance professionals experienced in listening and providing the best insurance service to fit your specific need.  Don’t delay, call or contact us today!