35:["$","$L36",null,{"category":"$37","relatedArticles":[{"id":"cG9zdDoxNzUyODE=","databaseId":175281,"postId":175281,"author":{"node":{"id":"dXNlcjoxNTg=","databaseId":158,"userId":158,"avatar":{"url":"https://secure.gravatar.com/avatar/865b53710bfcf7856ef41fc694d8dbb7?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":null,"additionalMeta":{"expertise":null,"__typename":"User_Additionalmeta"},"email":null,"firstName":"Geoff","fullName":"Geoff Williams","lastName":"Williams","name":"Geoff Williams","postCount":{"pageInfo":{"offsetPagination":{"total":38,"__typename":"OffsetPaginationPageInfo"},"__typename":"UserToPostConnectionPageInfo"},"__typename":"UserToPostConnection"},"slug":"gwilliams","__typename":"User"},"__typename":"NodeWithAuthorToUserConnectionEdge"},"categories":{"nodes":[{"id":"dGVybToxOTUzNA==","children":{"nodes":[],"__typename":"CategoryToCategoryConnection"},"databaseId":19534,"categoryId":19534,"link":"https://smartasset.com/liability-insurance/articles","name":"Liability Insurance","postCount":{"pageInfo":{"offsetPagination":{"total":5,"__typename":"OffsetPaginationPageInfo"},"__typename":"CategoryToPostConnectionPageInfo"},"__typename":"CategoryToPostConnection"},"slug":"liability-insurance","ancestors":{"nodes":[{"name":"Insurance","slug":"insurance","__typename":"Category"}],"__typename":"CategoryToAncestorsCategoryConnection"},"parent":{"node":{"name":"Insurance","id":"dGVybTo5MQ==","slug":"insurance","__typename":"Category"},"__typename":"CategoryToParentCategoryConnectionEdge"},"__typename":"Category"}],"__typename":"PostToCategoryConnection"},"content":"$38","date":"2022-11-08T17:16:58","excerpt":"

\n","featuredImage":{"id":"cG9zdDoxNzUyODI=","databaseId":175282,"altText":"SmartAsset: How Much Does Business Insurance Cost?","date":"2022-11-09T02:00:21","fileSize":49543,"mimeType":"image/jpeg","modified":"2022-11-09T02:00:21","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2022/11/iStock-1352063475.jpg","__typename":"MediaItem"},"modified":{"datetime":"2022-11-9","readable":"November 9, 2022"},"multipleBylinesByRole":{"editedBy":null,"reviewedBy":null,"writtenBy":null,"factCheckedBy":null,"secondEditor":null,"hideAuthor":null,"__typename":"Post_Multiplebylinesbyrole"},"adTargetingOverrides":{"fieldGroupName":"adTargetingOverrides","pageGroupNewKey":null,"__typename":"Post_Adtargetingoverrides"},"seo":{"canonical":"https://smartasset.com/insurance/how-much-does-business-insurance-cost","metaDesc":"Median monthly business insurance costs can range from over $40 per month for professional liability to almost $70 per month for a business owners policy.","metaKeywords":"","metaRobotsNofollow":"follow","metaRobotsNoindex":"index","readingTime":4,"title":"How Much Does Business Insurance Cost? - SmartAsset","__typename":"PostTypeSEO"},"slug":"how-much-does-business-insurance-cost","status":"publish","title":"How Much Does Business Insurance Cost?","uri":"/insurance/how-much-does-business-insurance-cost","tags":{"nodes":[],"__typename":"PostToTagConnection"},"__typename":"Post","adPageGroupOverride":null,"bylines":{"writtenBy":{"id":"dXNlcjoxNTg=","databaseId":158,"userId":158,"avatar":"$39","description":null,"additionalMeta":"$3a","email":null,"firstName":"Geoff","fullName":"Geoff Williams","lastName":"Williams","name":"Geoff Williams","postCount":"$3b","slug":"geoff-williams","__typename":"User"},"editedBy":null,"reviewedBy":null,"factCheckedBy":null,"secondEditor":null},"category":{"id":"dGVybToxOTUzNA==","children":"$3e","databaseId":19534,"categoryId":19534,"link":"https://smartasset.com/liability-insurance/articles","name":"Liability Insurance","postCount":5,"slug":"liability-insurance","ancestors":"$40","parent":"$43","__typename":"Category"},"isModifiedBeforePublished":false,"contentBlocks":["

Monthly business insurance premiums can be both affordable and expensive. How much business insurance costs will depend on the type of business you own. In fact, there are many factors that go into pricing a business insurance policy. You will get a better idea for how much you’ll have to pay for business insurance when you start comparison shopping and speaking with an insurance broker.

","

A financial advisor can help you create a financial plan for your business’s needs and goals.

","

Progressive Insurance says that the median monthly cost of a business insurance policy for new customers in 2021 ranged from $42 for professional liability to $68 for a business owners policy (BOP). Comparatively, Hartford says that the cost of general liability insurance for small businesses varies, but on average, it’s roughly $1,057 annually or about $88 a month.

","

Keeping this in mind, your cost will be more expensive or cheaper depending on your business’s insurance needs. Additionally, you should also note that your state may require certain types of insurance by law. But, even if it doesn’t, a lawsuit could put your business in jeopardy, if you aren’t insured.

","

Factors Affecting Business Insurance Premium Prices

","

","

Here are four common factors that could drive up your premium:

","$45","

Types of Business Insurance

","

The type of business insurance that you need will determine the cost. Here are five common types of business insurance policies that you may have to consider:

","$46","

Bottom Line

","

How much your business insurance costs will depend on the type of policy that you need, as well as other factors.

","

Those other factors include the location where your business operates, the risks employees are exposed to and the history of claims against your business.

","

Tips for Business Owners

","$47","

Photo credit: ©iStock.com/nensuria, ©iStock.com/Luke Chan, ©iStock.com/Renata Angerami

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\n","featuredImage":{"id":"cG9zdDoyNDAyOTA=","databaseId":240290,"altText":"A couple deducting a self-employed health insurance premium.","date":"2024-03-05T15:04:31","fileSize":203789,"mimeType":"image/jpeg","modified":"2024-03-05T15:09:05","sourceUrl":"https://smartasset.com/wp-content/uploads/sites/2/2024/03/iStock-1445037850.jpg","__typename":"MediaItem"},"modified":{"datetime":"2024-3-5","readable":"March 5, 2024"},"multipleBylinesByRole":{"editedBy":{"id":"dXNlcjoxMTc=","databaseId":117,"userId":117,"avatar":{"url":"https://secure.gravatar.com/avatar/9fffe2eb35204e151b68731435d247c5?s=96&d=mm&r=g","size":96,"__typename":"Avatar"},"description":"Arturo Conde is a senior editor at SmartAsset. He has a master’s from the Graduate School of Journalism at Columbia University and a bachelor’s from the College of Arts and Science at New York University. 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If you’re self-employed, you can deduct the premiums that you pay for health insurance, saving money at tax time and helping to offset the cost of health coverage. The self-employed health insurance deduction is an above-the-line deduction, so you don’t have to itemize deductions to take it. It’s not available in all situations, however. Key factors for eligibility include having qualifying health insurance, being considered self-employed and not having access to an employer group health plan. You can, however, deduct premiums for several kinds of health insurance, including medical, dental, Medicare and long-term care. Consult a financial advisor to identify all deductions you may be eligible to take as a self-employed individual.

","

Self-Employed Health Insurance Premium Deductions

","

The self-employed health insurance deduction allows self-employed taxpayers to deduct premiums paid for health insurance for themselves and family members. It is an above-the-line deduction, so it can be taken whether or not you itemize deductions. This deduction reduces your taxable income, which may make you eligible for other tax benefits that have income thresholds.

","

While many self-employed people will be able to take this deduction, there are some restrictions. For one thing, the insurance coverage has to meet some criteria. Additional limitations keep it from being used if the self-employed person could get insurance through an employer.

","

Qualifying Insurance Criteria

","

Most types of health insurance qualify for the self-employed health insurance deduction. Eligible premiums include those for medical and dental coverage and all kinds of Medicare, including Parts B, C and D. Premiums for long-term care plans also may be deducted as long as the policy is deemed tax-qualified by the IRS.

","

This deduction is not just for premiums you pay to cover your own health. You can also deduct premiums covering yourself, your spouse, dependents and non-dependent children under age 27.

","

Self-Employment Eligibility

","

There are also some rules to follow concerning your own eligibility for this deduction. To qualify for deducting health insurance premiums, you must have reported net profit income as a sole proprietor on Schedule C or as a farmer on Schedule F. Also eligible are general partners, limited partners receiving guaranteed payments and S corporation shareholders who own more than 2% of the S corp and get W-2 wages.

","

It’s not all-or-nothing when it comes to deciding your eligibility for this deduction in a particular year. Eligibility is determined monthly. For example, if you were self-employed for January to June and then had an employer-sponsored plan from July to December, you could deduct your premiums for the first six months.

","

Self-Employed Health Insurance Premium Limitations

","

One of the most significant obstacles to claiming this deduction is that you can’t have had access to employer-sponsored health coverage. That includes you and your spouse. If either of you could have joined a plan at work, you cannot claim this deduction. However, again it’s not all or nothing. If you only had access to employer-subsidized coverage part of the year, you could claim the deduction for the rest of the year. Also, there may be exceptions if the company-sponsored plan was too costly or didn’t meet minimum coverage standards.

","

When it comes to long-term care, some age-based limits apply. The IRS caps the maximum amount of qualified long-term care premiums you can deduct based on how old you are. Caps increase with age and adjust annually. For 2023, ages and amounts are:

","

Age	Cap
40 and under	$480
41 to 50	$890
51 to 60	$1,790
61 to 70	$4,770
Over 70	$5,960

","

Caps for 2024, according to the American Association for Long-Term Care Insurance, are:

","

Age	Cap
40 and under	$470
41 to 50	$880
51 to 60	$1,760
61 to 70	$4,710
Over 70	$5,880

","

How to Claim

","

You claim the self-employed health insurance deduction on Schedule 1 of Form 1040. Note that this is different from claiming medical expenses, which you do when you itemize deductions using Schedule A.

","

The self-employed health insurance deduction can be claimed even when you don’t itemize. This makes it useful to more people, since most taxpayers use the standard deduction rather than itemizing. An above-the-line deduction like this also reduces your adjusted gross income, so you may be able to tap into more tax credits. If you do itemize, you can still claim this as an above-the-line deduction.

","

Bottom Line

","

","

The self-employed health insurance deduction offers a valuable tax break to help offset expensive yet essential coverage costs. To qualify, you must have eligible insurance and meet self-employment criteria. If you do, you can claim this deduction regardless of whether you itemize.

","

Tax Planning Tips

","$5f","

Photo credit: ©iStock.com/mixetto, ©iStock.com/Srdjanns74

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In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.","additionalMeta":"$62","email":null,"firstName":"William","fullName":"Mark Henricks","lastName":"Henricks","name":"Mark Henricks","postCount":"$63","slug":"mark-henricks","__typename":"User"},"reviewedBy":null,"factCheckedBy":null,"secondEditor":{"id":"dXNlcjoxMTc=","databaseId":117,"userId":117,"avatar":"$66","description":"Arturo Conde is a senior editor at SmartAsset. He has a master’s from the Graduate School of Journalism at Columbia University and a bachelor’s from the College of Arts and Science at New York University. As a certified educator in personal finance, he edits and writes content that focuses on retirement, investments, home buying and other financial topics.\r\n\r\nArturo is a bilingual native in English and Spanish, and also writes as a freelance journalist for NBC News, among other publications. 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Max-funded indexed universal life (IUL) insurance is a financial product that combines life insurance protection with opportunity for growth. Unlike life insurance policies that only offer a death benefit, max-funded IUL policies also allow policyholders to accumulate cash value that can be accessed during their lifetime. The cash value of the policy can grow when a selected market index increases in value, and policies also often protect against losses if the index does poorly. IUL policies benefit from advantageous tax treatment but also come with high costs in the form of commissions and administrative fees.

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A financial advisor can help you determine what role life insurance could play in your financial or retirement plans.

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What Is Max-Funded Indexed Universal Life Insurance?

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Indexed universal life (IUL) insurance is a type of permanent life insurance that combines a death benefit with the potential for cash value accumulation and investment growth based on a market index. The policy is max-funded when the policyholder contributes the maximum premium allowed by IRS rules without causing the policy to become a modified endowment contract (MEC), which would unfavorably change the tax treatment of the policy.

","

In a max-funded IUL policy, a portion of the premiums paid is allocated to the cash value account, which earns interest based on the performance of a selected stock market index, such as the S&P 500. Cash value funds are not invested directly in stocks composing the index. Rather, they are used to purchase options that aim to track the index’s performance.

","

IUL policies typically cap the return that the cash value account can earn, but also offer minimum return floors. This approach can offer potential for higher returns than a traditional whole life insurance policy, while protecting against market losses.

","

Policyholders can access the cash value funds via withdrawals or loans. The money can be used for retirement income, loans, emergency expenses or other needs. By overfunding the policy within the IRS limits, policyholders can take full advantage of favorable tax treatment, as the cash value grows tax-deferred. Withdrawals or loans against the policy can also be made tax-free if structured correctly.

","

Benefits of Max-Funded Indexed Universal Life Insurance

","

","

A max-funded IUL offers benefits that can make it viable for those seeking protection and financial growth. Here are three general ones to consider:

","$72","

Max-Funded Indexed Universal Life Insurance vs. Other Policies

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A max-funded IUL differs from other policies like whole life insurance and level-option IUL policies in several key ways. Here’s a comparison:

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Bottom Line

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A max-funded IUL combines life insurance protection with the potential for cash value growth linked to market indexes. When compared with other policies like whole life and level-option IUL, max-funded IUL offers some advantages in terms of flexibility and growth potential. Max-funded IUL policies do come with higher fees and other costs than some insurance alternatives, however.

","

Financial Planning Tips

","$74","

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Homeowners naturally know that the price tag for remodeling and improvements can be high. An average kitchen remodel, according to Home Advisor, costs more than $40,000, while a lavish makeover that includes custom cabinetry, fancy tile backsplashes and restaurant-quality appliances can run more than $130,000. A financial advisor can help you plan for major home […]

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","

A financial advisor can help you plan for major home improvement projects and make sure they don’t derail your financial plan. Connect with a fiduciary advisor today.

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One thing that you may not be accounting for in your home renovation budget: higher homeowners insurance.

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What Is the 80% Rule for Homeowners Insurance?

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Under most homeowners insurance policies, your coverage needs to equal at least 80% of your home’s current market value. According to the National Association of Insurance Commissioners, if your coverage “drops below 80% of the full replacement cost of your home, your insurance company may reduce the amount that it will pay on a claim.”

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The idea that even modest home improvements can push the value of the property up should be no surprise to homeowners. But it also means that homeowners should know that their insurance premiums could go up, too. If they don’t keep the level of coverage at 80% of the home value, they may forfeit receiving complete repairs or replacements.

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Home improvements aren’t the only thing that can increase the value of a home. Inflation can also push a home’s value beyond the 80% level, leaving unwitting homeowners on the hook to receive only partial repairs or replacement if their home is damaged.

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Imagine the owner of a $400,000 home updating their kitchen and bathrooms, spending $80,000 on the project. Before the work was done, the minimum 80% coverage level for full replacement was $320,000. After the improvements, the home’s new market value increases to $480,000. However, the old insurance coverage of $320,000 covers just 67% of the home’s new value. To meet the 80% rule, the homeowner’s insurance policy should be increased to $384,000 worth of coverage.

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If the owner doesn’t inform the insurance company and raise their coverage to bridge that $64,000 gap, damages to the property won’t be fully covered. While a financial advisor may not be able to help you purchase homeowners insurance, they can potentially help you plan and save for your that expensive home renovation.

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Do I Need to Report an $80k Home Improvement Project?

","

","

In addition to informing your insurance agent about the change in value, you also should let your mortgage holder know about the increase. However, it’s unlikely to make any difference in your payment that’s typically included in the boilerplate language of most mortgages.

","

Your mortgage terms are also likely to require a minimum level of coverage for your property. Your mortgage servicer will find out if the tax assessment for your property increases. Finally, your mortgage terms might include a requirement for the lender to review any major renovations, especially where the risk is that an unfinished project might lower the value of the home.

","

It’s best to talk to your insurance agent before any renovation work, not only to find out if you’ll need to raise your coverage limit but also to find out whether your property liability terms cover any injuries to tradespeople doing the work. For a major project, you also may want construction insurance, which covers theft and damage to building materials, vandalism, fire and other risks. If you won’t be living in the home while the work is being done, you might be able to take out construction insurance to replace your home insurance, giving you one less bill to pay for a few months.

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One more thing: Your state may require you to let the tax assessor know about improvements that raise the value of your property, which also can increase your property tax. As you can see, there’s a lot of consider when undertaking a home improvement project. A financial advisor can help you plan and save for the unexpected expenses that you may incur during a home renovation.

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Bottom line

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Making even a modest improvement to your home could increase the value of your home and result in your homeowners insurance falling below the 80% home value coverage requirement. As a result, it’s important to report home improvements to your insurance company and potentially update your insurance policy to ensure you receive the maximum amount of money if your home is damaged or destroyed.

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Homeowners Insurance Tips

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