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We have provided answers to many of the frequently asked questions about insurance needs and terms in this section. Feel free to browse or use the term or keyword search to quickly identify answers to specific question you might have. If you don't find what you are looking for please contact us with your specific needs and we will find an answer to your question.
What is a Defined Benefit Plan?
A defined benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement. Or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service — for example, 1 percent of average salary for the last 5 years of employment for every year of service with an employer. The benefits in most traditional defined benefit plans are protected, within certain limitations, by federal insurance provided through the Pension Benefit Guaranty Corporation (PBGC). Please call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs
What is a Defined Contribution Plan?
A defined contribution plan, on the other hand, does not promise a specific amount of benefits at retirement. In these plans, the employee or the employer (or both) contribute to the employee's individual account under the plan, sometimes at a set rate, such as 5 percent of earnings annually. These contributions generally are invested on the employee's behalf. The employee will ultimately receive the balance in their account, which is based on contributions plus or minus investment gains or losses. The value of the account will fluctuate due to the changes in the value of the investments. Examples of defined contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans. Please contact us or call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs
What is Profit Sharing Plan?
A Profit Sharing Plan or Stock Bonus Plan is a defined contribution plan under which the plan may provide, or the employer may determine, annually, how much will be contributed to the plan (out of profits or otherwise). The plan contains a formula for allocating to each participant a portion of each annual contribution. A profit sharing plan or stock bonus plan include a 401(k) plan. Please contact us or call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs
What is a 401(k) Plan
A 401(k) Plan is a defined contribution plan that is a cash or deferred arrangement. Employees can elect to defer receiving a portion of their salary which is instead contributed on their behalf, before taxes, to the 401(k) plan. Sometimes the employer may match these contributions. There are special rules governing the operation of a 401(k) plan. For example, there is a dollar limit on the amount an employee may elect to defer each year. An employer must advise employees of any limits that may apply. Employees who participate in 401(k) plans assume responsibility for their retirement income by contributing part of their salary and, in many instances, by directing their own investments. Please contact us or call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs
Eventually business owners face the challenge of either selling their business or transferring ownership to a family member. If you are considering business succession, the Zidd Agency can help you develop and implement a personalized succession strategy that maximizes the tax advantages for all parties involved while helping you plan your personal financial objectives. Working closely with us, the Zidd Agency will provide help and guidance throughout the entire succession process to ensure a smooth transition when you decide to transfer ownership. Please contact us or call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs
What is a Simplified Employee Pension Plan (SEP)?
A Simplified Employee Pension Plan (SEP) is a relatively uncomplicated retirement savings vehicles. A SEP allows employees to make contributions on a tax-favored basis to individual retirement accounts (IRAs) owned by the employees. SEPs are subject to minimal reporting and disclosure requirements. Under a SEP, an employee must set up an IRA to accept the employer's contributions. Employers may no longer set up Salary Reduction SEPs. However, employers are permitted to establish SIMPLE IRA plans with salary reduction contributions. If an employer had a salary reduction SEP, the employer may continue to allow salary reduction contributions to the plan. Please contact us or call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs
Where are you located?
For Directions call us at 1-330-722-5653How do I contact you?
Email: email@example.comPhone: 330-722-5653Fax: 330-722-5546Toll Free: 1-888-291-5867 (outside Ohio)Web: www.ziddagency.com
What is our relationship with insurance companies whose products we sell?
As some of you may be aware from recent press reports, regulators in various jurisdictions are investigating the receipt of contingent compensation on the sale of benefits and property and casualty insurance products in excess of standard commission rates. We are writing to provide you with information regarding our relationships with insurance companies whose products we sell. As a valued client, it is our goal as your service provider to place you in the best possible position to make informed business decisions.
As a subsidiary of National Financial Partners Corp. (“NFP”), we are a member of a financial services network containing approximately 140 owned firms and approximately 185 affiliated firms. Firms within the NFP network engage in one or more of its primary lines of business, which include corporate and executive benefits and property and casualty insurance brokerage. Firms are compensated through fees and commissions for services provided to clients in each of these lines of business. In addition to the standard fees and commissions received for the services provided to you, we or our affiliates may earn additional compensation for our role in providing certain products and services to you under separate contracts with insurance companies and/or group benefits providers. Insurance companies and group benefits providers may pay us or our affiliates contingent compensation upon satisfaction of factors such as volume, persistence or profitability of the business placed with such insurance company or group benefits provider. In addition, such product and service providers may pay us or our affiliates fixed amounts related to the support of NFP company conferences, conventions and other marketing efforts.
If you are interested in receiving additional information on any of the matters discussed above, please contact us. As always, we value your business and appreciate the opportunity to provide you insurance and benefit services.
What is Universal Life Insurance?
Universal Life Insurance is a kind of flexible policy that lets you vary your premium payments. You can also adjust the face amount of your coverage. Increases may require proof that you qualify for the new death benefit. The premiums you pay (less expense charges) go into a policy account that earns interest. Charges are deducted from the account. If your yearly premium payment plus the interest your account earns is less than the charges, your account value will become lower. If it keeps dropping; eventually your coverage will end. To prevent that, you may need to start making premium payments, or increase your premium payments, or lower your death benefits. Even if there is enough in your account to pay the premiums, continuing to pay premiums yourself means that you build up more cash value.
How much life insurance do I need?
That depends on a number of factors such as whether you have children, whether you have a mortgage, the level of coverage provided by your employer, your financial situation, your lifestyle, your risk factors such as smoking, alcohol consumption, and general health, and a host of other factors. Please contact us or call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs.
What is Variable Life Insurance?
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What are Life Insurance Illustrations?
You may be thinking of buying a policy where cash values, death benefits, dividends or premiums may vary based on events or situations the company does not guarantee (such as interest rates). if so, you may get an illustration from the agent or company that helps explain how the policy works. The illustration will show how the benefits that are not guaranteed will change as interest rates and other factors change. The illustration will show you what the company guarantees. It will also show you what could happen in the future. Remember that nobody knows what will happen in the future. You should be ready to adjust your financial plans if the cash value doesn't increase as quickly as shown in the illustration. You will be asked to sign a statement that says you understand that some of the numbers in the illustration are not guaranteed