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Show t Sun Advocate Price. Utah Tuesday May 14, 2002' 3B Key employee insurance coverage provides safely net Ior snail bums arrives to rev up lawn mower, store snow blower f, - ' , , ' s. By JOHN ' a: i By RICHARD BEARD 'V- . USU Extension . - Many small business owners in the Castle Valley area may feel particularly vulnerable to ride because much of their success depends on one person or a few key employees. Because no business can insulate itself completely from every rid, getting protection and planning ahead is vital to being prepared for the worst-cas- e scenario. As part ofthe planning process, small business owners should consider key employee life andor disability insurance. Key employee life insurance is insurance written on the life of an organizations officer or other key employee, the loss of whom would cause the organization financial hardship,.;- In general a key employee can be anyone who is responsible for management decisions, is highly paid, has a significant effect on sales or has a special rapport with customers and creditors. If a key employee dies, a business typically suffers in four ways: Loss of management skill and experience. Disruption in sales or business production. Credit difficulties. New expenses as a result of hiring and training a replace- ment for the key employee. Key employee life insurance works like individual coverage. When the insured dies, the policy pays out a benefit However, instead of an individual insuring him or herself or a family member, the business owns the policy and pays the premium. If the insured dies, the business is the beneficiary and will receive the policy pay- ; the tixpe of year has arrived for Carbon County resi- dents to rev up the lawn mowers and put away the snow blowers. ' , . Single maintenance procedures conducted on the mower and blower will extend the life of the equipment, reduce the - .need for repairs and provide for eaqr start-u- p when the r mowers or blowers are needed.-.- . Seasonal equipment such as snowblowers and lawn mow-- ! - ers are maintained in much the same way. Power equipment manufacturers provide written guidelines for maintaining equipment. The instructions should 'be closely followed. f Tb prepare lawn mowers for operation. Local residents ' i should consider the following tips. The air Glter on the mower should be cleaned or re' ' placed. ; ' The tank should have fresh, clean fuel and the oil should r. be .. changed and filled to thb proper level. The ignition system may require a tune-u- p if thsre is :t difficulty m starting. The sparkplug mould be removed and inspected. Any . carbon buildup should be removed or a new sparkplug 'installed. Wheels and wheel bearings should be inspected and loose . or worn equipment should be tightened, repaired or re- The lawn mower blade should be sharp 'placed. and free of excessive nicks and damage. v . All safety shields and guards should be in place and 'i; Operational Equipment that has been modified or lacks operator .safety equipment should not be Used.' Most lawn mower repair companies offer spring '.v Carbon County homeowners who are unfamiliar with ' lawn care equipment maintenance or who are too busy for tune-up is probably worth the $25 j : h will find that a spring ' ,1. p to $35 that is commonly charged. f --v The following guidelines are for storing snow blowers " V."-jiI : and other d equipment Wash dirt and debris from the engine and chassis, mak-bi- g sure to dean the equipments underside. Add a feel stabilizer to the fuel tank if gasoline is to - remain in the tank for longer than six weeks. for a few seconds to distribute thestabi-Ui Run the engine . Iizer through 5. the carburetor. Completely fill the tank with fuel so there is no space : for moisture condensation in the tank. . . v Some manufacturers recommend emptying the fuel tank ;y Li and running the engine to empty the fuel system. Follow the manufacturers recommendations for the ":r. equipment being serviced. 'Disconnect the sparkplug wire and remove the spark-plu- g from tip engine. .. Place a few drops of engine oil into the cylinder and pull I the starter rope a few times or crank the engine for a few i Seconds to distribute the oil inside the cylinders y Replace the sparkplug and leave the wire disconnected. ; a Select a storage location that is ventilated, dry, out of the weather and out of the way. , L'' Do not store d . equipment near a gas fur--:.. , hace, stove or water heater. Maintain equipment regularly. ';;X Proper maintenance prolongs the life of seasonal yard ' whether the care equipment and provides for easy start-ugrass grows or the snow blows. .. . V' .- : L - - - -' ... tune-t'jUp- . S,' . gasoline-powere- .. k ? . . : L; ly ment . Typical benefits of key employee life insurance include: Corporate redemption of stock owned by the key employee. Indemnification of lost corporate profits. , Payment of outstanding obligations. Increased working capital.' When the right type and amount are used, key employee life insurance can also include informal funding of a key employees death, disability or retirement benefits. " Premiums are not included in a key employees income and are not deductible;' " 7 The proceeds of a key employee life insurance policy paid to the business are exempt from income tax. When considering life insurance, it is also a good idea to TCJ's-Yo- $3,500 to $4,000 a year to cover a develop a business continuation plan, including details of how the company will function without key employees. Not only is a continuation plan helpful, but it is also often required by insurance compa- non-smoki- ng male for a benefit of $15,000 a month for two years, after a waiting period. Disability insurance is also hard to find because the number of providers is diminishing. Premiums may be deductible, but if they are not, the benefits are As with most safety nets, key employee insurance may seem . expensive for small businesses. But when planning for the un- -, known, however, there is one thing companies can count on. The price of key employee insurance and the time associated with planning for it will seem like a bargain if a small busi' ness ever needs to use it. 90-da- y . nies. ' ' The chance of being disabled is greater than the chance of death before the age of 65. Therefore, key employee disability insurance may be more important than life insurance tax-fre-e. in protecting a company. .. Although disability can be a great economic loss to a company, small business owners are often unsure about using the . insurance. One reason business owners may be deterred is the potential cost. Expect to pay Lasagna IndudMttrilc bread, soup or uM $750 Kailuf Chicken Atrrei do O Broiler & Catering 179 S. Main, Helper . 472-986- 6 Building Materials Headquarters ur MIS,,- Structurally, many key employee life insurance policies are set up as permanent policies that build cash value. However, a smaller business can choose a term life policy instead if cash flow is an issue. The term policy may be able to be connected to a permanent one at a later date. In this case, premiums are paid until the employee retires or leaves the company. The cash value can then be used to informally fond a deferred compensation pay out if the key employee re- -' mains with the company for a L . : designated length of time. The amount of coverage can range from the equivalent of the key employees base wage to as high as 10 or IS times his or her salary. Most small business do best with a payout of twa to three times the key employees salary. Key employee life insurance policies are not only affordable, but investors and lenders often will insist you purchase a policy to protect their invest- out f, gasoline-powere- FORD Financial adviser , p, 10:EastMain7iPi1ce Station f-- 435-636-81- 00 Moe&iSftlaaUrfMiStelaaL-Sgin- . i 1 'has me rngnee rals of usenf Fen-nu- n Jr Am deadmi on now in tof6f Qaim Jensen, Graff & Barnes, yoiir local trial attorneys, will personally speak with you. Absolutely no cost for testing nor attorney fees until settlement or verdict is obtained. a . We will test you locally. . ; t v that being a good neighbor means a lot more than just living next door to someone. We also everything the unique needs of the people who I . ( & youd expect from a good neighbor. 14 HIGHER interest on any UCCU CD (above cwient stated nucs, min! of S500) FREE order of checks just by opening ' a new' checking account 14 FREE membership vj Vji - . or tplj froe . A . . LOWER interest on any auto loan dan cumnu Bated nuo. ; QAjCJ I out how we can meet your financial needs. r PRICE BRANCH ' 494 East Main Street Price, UT 84542 637-09Fax 6375455 1 5 www.uuhcentral.com fTJTI Utah Central Credit Union lilV Were, in it together lr866-M440- 5 niuwa , 4 fit OPEN A NEW ACCOUNT AND RECEIVE: Visit our web site at www.utahcentral.com and find - Forjrtie People 435-586-44- 04 nd live and work here just like you. At UCCU all. ' Your Local Carbon & Emery County Law Firm 5- up frindow is designed to ' 1 Jensen, Graff & Barnes I. t. ; mortgage loans to Saturday hours and a your needs. And of course, it all comes with the friendly service i " , we oiler from free checking and live here in Price. Thati because were local. We flower ? . s f decisions arc made here, not in New York. And RSVP immediately for June testing dafesl , - .f 1 : . At Utah Central Credit Union, we understand ' V - ' .V f . m ' '. v -f . V f ok IMbmhp Md dwuw wwiKd.. umV'w .' I . f o V |