D34—Lancaster Farming, Saturday, August 18,1984
Brocket's Ag Advice
■Lv M By John E. Brockett
jM Farm Management Agent
st~- Lewistown Extension Office
INSURANCE
Insurance can be a beneficial personal and business goals, you
estate planning tool or a drag on an could have a good program. The
already short money supply. If you insurance industry has changed
have an insurance agent who dramatically in the last few years,
knows his or her product and is Many agents have finally come to
Its revolutionary rotor/auger mixer package is an engineering first,
combining 20 years of feeder mixer knowledge with the original auger
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•No discharge conveyor pcsblems • Fewer bearings & sprockets
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grinding) • Less maintenance in time and dollars • Less horsepower
allows a smaller power unit. • Save horsepower on bigger bales with
coarser grind • Less damage to flakes
• Ber-Vac Snow Blowers • Roll-A-Bout Hay Feeders
• Eurobeton Cement Mixer • Rovibec Bedding Choppers
• Eurospand Fertilizer Spreaders • Running Gears
• E-Z Calf Hutch • Valac Hay Racks
• Hydraulic Dump Trailers • Versatile Stock Racks
• Innovative Mixer Feeders • Wagon Snagger
• Portable Barn Fans • Wooden Feeder Box
Sales Representative For
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Manufacturers Of The Original DION
• Forage Blowers
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• Forage Boxes
• Forage Harvesters
AG PROGRESS DAYS
{ FOR MORE INFORMATION
I List the products you are interested in and mail coupon to:
I Joseph Swantak, Inc., H.C. 64, Box 93, Oneonta,
I N.Y. 13820.
I Product:
j Name: _
i Address:
j Telephone:
LF AUG 84J
genuinely concerned about your
ALSO
See Us At
Located West 9th Street
grips with the needs of the modern
farm business. Gone is the feeling
that only whole life insurance is
any good.
The main questions a farm
manager now has are;
1. How much insurance should
we have?
2. What kind of insurance would
best meet our goals?
3. What are our overall goals?
4. Who should be the insured,
beneficiary and owner of the
policy?
5. What is its cost?
How To Buy
It is easy to buy insurance, but it
is difficult to decide on a sound
insurance based package. A sound
A LESSON
WELL
LEARNED...
LANCASTER
FARMING'S
CLASSIFIED
ADS
GET RESULTS!
Phone:
717-394-3047
or
717-626-1164
Schaefferstown, Pa. on Rt. 501 - South Of Traffic Light.
Activities on Saturday include horse plowing contest, tread power, corn grin
ding, ring power, road grading and log loading. Sunday’s activities include horse
pulling events, plowing with 8 horse hitch, and a covered wagon 6 to 20 mule
hitch.
Both days will feature cider making with steam power, operation of 100 year old
saw mill, and demonstration of a large mule team. For more information on
horse events, call (717) 865-4171 or (717) 272-5891.
Saturday fveninj, 6 until f
KoaD Cradlup, Sop Jumping, Plowing and
Covered XDagon*.
insurance based package should
first determine what you can af
ford to spend on insurance. Then
what do you want it to do for you or
your family. Then decide is it a
temporary thing or do I want it for
as long as I live. Finally how does
it fit in with your total business
plan? A good insurance
professional can help you line this
up, but you should make all major
decisions. Do not give up if the first
time around the available money is
not enough to buy the amount
needed to cover your personal and
business goals. Look at it the same
way you do for other challenges. If
it doesn’t fit let’s take it apart and
start over. Perhaps you don’t need
all of the insurance proposed all of
your life. Size of debts change,
number and needs of dependents
change, the business itself
changes, and you change.
Suggestions
Buy For Needs - buy some in
surance for temporary needs such
as term insurance to cover a
critical time period. Buy other
insurance for longer term -
perhaps level term or one of the
insurance plus investment
packages such as Universal Life.
Tax Consequences
If you are the insured and owner
of a policy, it will be part of your
taxable estate. However this will
be of small consequence if your
spouse is the beneficiary and lives
longer than you. It could cause tax
problems upon the death of the
spouse. Buy insurance with you as
owner and spouse as beneficiary
while the family is young and farm
has lots of debt. Then you can
decide later whether to continue as
is, gift policy to spouse, or make a
child or a trust the beneficiary.
Secondary Beneficiary - always
have a secondary beneficiary for
your policy. They would only
'’olWt if the primary beneficiary
Antique farm equipment will be in use during the fair.
' Added Attraction ~
died before you. It would save a 6
or 15 percent Pennsylvania
inheritance tax.
Ask Questions - a competent
insurance agent should be willing
and able to answer your questions
in a way that you can understand.
Some of the questions you might
ask are;
1. What is the annual premium
cost? Is there an initial fee? If so
how much? How much of the
premium goes to the sales charge?
2. What are the historic
dividends (don’t be fooled by
projected or oral dividends or
returns)? What is the interest rate
paid on accumulated dividends?
3. What cash value does the
policy acquire? Can it be with
drawn? How? At what cost? Where
is this in writing?
4. Is the company rated by A.M.
Best? (if so you can probably look
it up at the local library). Some
companies receive a lot of fancy
publicity in popular magazines or
newspapers. The founder or
president may be an acquaintance
of the reporter or writer. Publicity
in the “popular press” is usually
worth very little.
What are the advantages and
disadvantages of the many types of
insurance the agent sells? (term,
whole life, term + investment,
etc). If the agent sells one type
perhaps you should look further.
6. How is the agent paid - by
salary or commission? What are
the agents credentials? How much
training and experience has the
agenthad?
Shop Around - you don’t usually
shop at one store so feel free to talk
to several insurance agents. Don’t
be afraid to show one agent the
proposal from another one. Rival
agents may help to pick out the
weaknesses of a policy including
their own better than anyone else.