Spencer Insurance Blog

Another Labor Day Weekend is upon us.  Did you know the first Labor Day celebration was in New York City on September 5, 1982?

According to the U.S. Department of Labor, Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.

Most of us celebrate Labor Day as a day of rest and the unofficial end of summer.  Hopefully we can take a moment and pause to honor the American Worker.  Who is that??  We all are American workers doing our jobs the best we can to promote our business but more importantly to provide support for our families.  American workers include factory workers, service workers, government workers, small business owners and their employees and much more.

Take a minute out of your weekend to pray for all those American Workers who are currently out of work and trying to find a job. I know we all know someone, a friend or family member, who is looking for work.  Make sure you encourage them so they keep their spirits high.   

I wish everyone a relaxing weekend and hope you enjoy all your plans whatever they may be.  I also want to recognize all those workers who will work this weekend.  Hopefully you will get some relaxing time off in the future.  Have a safe and enjoyable weekend!

An article on App.com’s “In the Money” Section details a story about a couple who was left with major debt when their son died in a car accident at age 25.  For the full article go to: http://blogs.app.com/inthemoney/2010/08/03/barnegat-couple-left-with-sons-college-loans-get-relief/

I mentioned this now since many parents are completing loan applications to send their children to college.  The cost of college has skyrocketed over the last decade forcing many parents to take out loans in addition to their children’s Federal and State loans.  If you do this, you need to make sure you know who is responsible for this debt if your child dies.

The article talks about a Barnegat, NJ couple who were stuck with loans that amounted to over $80,000 when their son died in a car accident. 

After their son’s death they received a bill from the New Jersey Higher Education Student Assistance Authority (NJHESSA) for $81,000. This bill amounts to $685 a month since Ralph Grande so-signed the loan guaranteeing the payments if his son did not make them.  A spokeswoman for the authority said “Although we are sympathetic to the difficult circumstances involved, under terms of the bond indentures that finance the NJ Class loan program, HESSA is not permitted to forgive student loans as a result of the death of a borrower.”

When financing college tuition many parents take out parent loans or co-sign state and private loans.  This puts a responsibility on the parent to repay the loan if the child does not pay it no matter the reasons. 

Some State and Federal programs will forgive loans that are co-signed in the event of the borrower’s death; however I would make sure by calling the agency or bank that provided the loan.

There is another strategy parents can use to avoid this debt in the event their son or daughter dies.  Parents should consider taking  out a life insurance policy on their child to cover the debt. 

The cost of a $100,000 twenty year term policy for a 24 year old male who is in good health and a nonsmoker is under $150 a year.

By having a $100,000 life insurance policy on your son or daughter you would receive $100,000 upon their death to pay off those loans.  By using life insurance to pay off the loans your retirement fund or other assets are not jeopardized.

Contact us today at 215-885-2200 for a FREE QUOTE!  Don’t let the death of a child derail your retirement. 

On a positive note, the Grande’s debt was reduced to $41,000 by the lender.  In a follow up article (In The Money August 3, 2010) Ralph Grande said “It is $41,000. Joan and I are going to have to cash in retirement accounts and obviously work a lot longer, but at least the burden of $81,000 will be reduced.”

The Cathy Garry Memorial Golf Tournament was held on Monday August 2^nd.  It was a great success and a lot of fun.

Our foursome tied for first place at 9 under par but lost in a tie breaker.  It is the best my brothers in laws have played together in a long time.  The weather took a break from the hot and humid summer and delivered a pleasant day in the mid 80s with low humidity.  A day away from the office playing golf for a great cause was truly a pleasure.

Spencer Insurance was pleased to donate $5 for each referral we received from March 1^st to August 2^nd.  We received 44 referrals and were pleased to present a check for $220 in the name of all those who gave us a referral. I want to thank all those who referred business to us.  Your referral and donation in your name made a difference to a family with a child with cancer.

The proceeds of the Golf Tournament are being used to send a family who has a child with cancer to Walt Disney World.  What a great cause, thank you for letting us help out.

There is still time to make an individual donation.  Click this link to be directed to the website: http://golfforcathy.webs.com/individualdonations.htm.  

Enjoy the rest of your summer!

A few years ago I had three children going back to college.  Three “move in days,” in the hot and humid days of August, lugging all their “stuff” to their dorm rooms and apartments.  It always seemed they were on the third or fourth floor.  I thought my children had a lot of “stuff” until I saw some of the other dorm rooms.  Big screen televisions, stereo systems, computers, microwaves, refrigerators, clothes and books!!  How did they get all that stuff into their room?  Wow! 

 Is all this “stuff” covered under your homeowner’s policy?  The answer may be yes, no or maybe!  Many colleges today are mandating that the student have renter’s insurance to cover this “stuff.”  That may be a very good idea or it may not be necessary.   You need to give us a call and discuss your situation.  That way we can make sure you have the proper protection. 

 Generally, as long as your child is a full time student, was a resident of your house before moving to college and is under age 24 there is some coverage for the students “stuff” while it is at school.  However, if there is coverage it is generally limited to 10% of your contents (Coverage C) on your homeowner’s policy.  So if your house is insured for $200,000 and your contents limit is $140,000, then your child would have $14,000 of coverage for the “stuff” in his dorm room. 

 What if my child is over 23 or a graduate student?  What if my child has a roommate and they buy “stuff” together?  What if my child has permanently moved out of my house?   Are the computers or musical instruments covered?  Call us today!

 You also need to talk to us about your auto insurance.  Is the child taking one of your cars to school?  Is your child buying a car to have at school? Is the car in your name or your child’s name?  Did you know there may be a discount on your auto policy if your child attends school over 100 mile away and does not take a car to school with them?

 It is very important that you understand what is and is not covered under your homeowner’s and auto insurance policies.  That is where Spencer Insurance Agency shines!  We have a very experienced staff that can answer these questions and make sure you have the proper coverage.  Call us today at 215-885-2200 to discuss any question you have concerning any of your insurance policies. 

 My wife Tammy and I had many good memories of our children’s college years, but after our youngest daughter Patty graduated we knew we would not miss the “move in days.”  Of course,  now are children are moving into homes and apartments.  So we keep on moving their stuff, but at least that stuff is out of my house!

The state of Pennsylvania and your local townships have some surprises for you if you need to rebuild your home if it were totally destroyed. 

 Starting January 1, 2011 any home in Pennsylvania that needs to be rebuilt are required to have a sprinkler system.  Home builders are not happy with this new requirement and are fighting the new law. (See http://tiny.cc/z5haf).   That could mean an additional cost of $13,000.

 Many townships have other requirements.  Most homes that are damaged beyond 50% must be torn down and rebuilt.  Who pays for the cost to knock down and remove the good part?  Other requirements include hard wired smoke detectors, two means of egress in a finished basement, fire rated doors between home and garage, GFI outlets on dedicated circuit and the use of fluorescent bulbs for all closet light fixtures.

 Who pays for all this?  Good question.  Make sure you know the answer!

 Most homeowner’s policy pay for the replacement of damaged structures with like materials.  This means if you need to tear down part of your home that was not damaged, add or upgrade items that were not in your home previously there would be no coverage. 

 Fortunately, most insurance companies provide some coverage for this loss.  The insurance companies call this coverage “ordinance or law coverage.”  Most policies include an additional 10% of your “Coverage A” (building) coverage to cover this loss.  That means if your home was insured for replacement of $250,000 you would have $25,000 of “Ordinance or law coverage.”

 However, this is not extra coverage and is included in your replacement amount.  It also may not be enough coverage.

 Contact us today at 215-885-2200 to see how you can protect yourself in this situation. 

 Your Protection and Peace of Mind is our only Business!

I just wanted to add one more reminder for this wonderful event.  I hope to see you there!  This a repeat of  a previous blog.

Last September Tammy and I lost a good friend and client, Cathy Garry, to cancer.  Cathy’s first fight was with breast cancer.  After she successfully battled this terrible disease she was diagnosed with cervical cancer.  All of us who knew Cathy were amazed at her spirit.  Whenever we got together with Cathy and Jim the conversation was never about her battle with cancer.  She only wanted to know how our family was doing.   She certainly was an inspiration to us and a truly kind and loving person.

Cathy’s Kids Foundation is a registered non-profit foundation that was created by her three children and their spouses to aid families fighting the same battle with cancer as their family fought.  I cannot think of a better way her children could have kept her spirit alive. 

Check out their website at http://www.golfforcathy.com/  

 On Monday August 2, 2010 the Foundation will hold the first Cathy Garry Memorial Golf Tournament.  All proceeds raised at this event will help send a child who is fighting cancer and his/her family to Walt Disney World.  I urge you to support this event in any way possible.  If you like golf, sign up a foursome.  If you are not a golfer then you can still make a donation

All of us here at Spencer Insurance Agency want to help out in this great cause.  In addition to being a sponsor for the golf outing, Spencer Insurance will donate $5 for every referral we receive from you from March 1, 2010 until August 2, 2010. There is no limit to the number of referrals you send our way.  Please spread the word to your friends and family.

In addition if you can donate even a small amount we would be thrilled.  You can make individual donations through their website at http://golfforcathy.webs.com/individualdonations.htm.

I would like to thank you in advance for helping Cathy’s Kids Foundation send a child and their family to Walt Disney World.  I know all of us have been affected by this terrible disease and hope for a cure in the near future.

Charlie Spencer

Summertime means that your teen drivers are on the move.  That means they are spending more time driving your car.  They may be going to work, the pool, or a friend’s house.  This is a great time to remind them how to be a safe driver.

 What can you do as a parent of a teen driver?  Here are a few suggestions:

• When you are going on vacation let them do some of the driving.  It may be their first opportunity to drive on an interstate such as I95.  Start them out in a less congested area of the interstate.  This should be a valuable lesson.
• Check your policy limits.  Now that you have teen drivers your household is 5 times more likely to have an accident.  Check with us to make sure you have the right protections.
• Take our Free online study course “Teach your teen to drive.”  This course offers several lessons that you may have overlooked when you first taught your teen to drive.  Go to our teen driver website at www.teendriverinsurance.com/spencer to take the course with your teen.  Share this link with your friends and family who have a teen driver.

Summertime is a great time of year to continue teaching your teen driver to be a safe driver.  There are usually less activities going on in the summer as you try to relax and get recharged.  Use this valuable time to continue teaching your teen to be a safe driver.  Let us know if we can help you.  Have a great summer!

We want to make it as easy as possible for you to connect to Spencer Insurance.  CLICK HERE to be directed to our website.  Our website is available 24/7.  You can contact us through the website for most of your request.

If you are parents of a Teen Driver check out this website: www.teendriverinsurance.com. This site offers parents of teen drivers’ valuable help in teaching their teen driver to be a safe driver.

Lastly, become a friend of Spencer Insurance on Facebook.  Click here to go to our Facebook page and become a friend of Spencer Insurance.  You will receive valuable and timely tips.

Let us know if there is anything we can do to make it more convenient for you to reach us.  Email me at cspencer@spencerinsurance.com with any suggestions

As the 4^th of July weekend approaches I wanted to wish everyone a wonderful and relaxing weekend!

The 4^th of July celebrates our Freedom and our Independence. Many fought so we could become independent and many still fight to protect that Freedom.  Please take a moment this weekend to stop and pray for all our members of our Armed Services. Thank them for keeping our Freedom a reality!  Remember all those who have died over all these years to keep our nation free.

 Many countries claim to be a democracy, but I would not want to live in any other country.  We all have our politics but we put that aside this weekend as we celebrate our Independence Day!

I wish you the best for this weekend.  I hope you have some time to sit back and relax and enjoy the pool, your picnic, parade and fireworks.

Get out and celebrate living in a truly Independent democracy!

Last September Tammy and I lost a good friend and client, Cathy Garry, to cancer.  Cathy’s first fight was with breast cancer.  After she successfully battled this terrible disease she was diagnosed with cervical cancer.  All of us who knew Cathy were amazed at her spirit.  Whenever we got together with Cathy and Jim the conversation was never about her battle with cancer.  She only wanted to know how our family was doing.   She certainly was an inspiration to us and a truly kind and loving person.

Cathy’s Kids Foundation is a registered non-profit foundation that was created by her three children and their spouses to aid families fighting the same battle with cancer as their family fought.  I cannot think of a better way her children could have kept her spirit alive. 

Check out their website at http://www.golfforcathy.com/  

 On Monday August 2, 2010 the Foundation will hold the first Cathy Garry Memorial Golf Tournament.  All proceeds raised at this event will help send a child who is fighting cancer and his/her family to Walt Disney World.  I urge you to support this event in any way possible.  If you like golf, sign up a foursome.  If you are not a golfer then you can still make a donation

All of us here at Spencer Insurance Agency want to help out in this great cause.  In addition to being a sponsor for the golf outing, Spencer Insurance will donate $5 for every referral we receive from you from March 1, 2010 until August 2, 2010. There is no limit to the number of referrals you send our way.  Please spread the word to your friends and family.

In addition if you can donate even a small amount we would be thrilled.  You can make individual donations through their website at http://golfforcathy.webs.com/individualdonations.htm.

I would like to thank you in advance for helping Cathy’s Kids Foundation send a child and their family to Walt Disney World.  I know all of us have been affected by this terrible disease and hope for a cure in the near future.