Archives for May 2015

4 Fun and Informative Hobbies to Lessen Stress

What we do with our downtime is oftentimes as important as what we do during our busy hours. Most adults spend half of their daily lives in their workplace and relish their weekends or their days off. While you might be tempted to just sleep off the whole weekend, it is much better if you come up with interesting activities to keep your brain or body churning.

For those people who just can’t get enough of life and want to try and experience everything, consider adding a couple more activities and new hobbies in your calendar. Here are 5 new habits to learn that will surely add a fun twist to your daily life.

lessen stress

  1. Games – No matter what age, everyone still enjoys a little playtime. These days, it is so easy to look for the newest games on the Internet. With a couple of clicks and taps, you can get already get access to the best games in the market. You can popular games like clash of clans download on your device and you would instantly have something to entertain you when you have a few minutes to spare.
  2. Books – While games are more often for entertainment, books are for fueling the mind. With the right set of books on your bookshelf, you can very easily disappear to new fictional worlds, learn about other cultures or travel the world while you read through the pages. Books are a great escape for those who have imaginative minds.
  3. TV shows – A lot of people are too quick to shun off TV because of reality shows or other trashy series. While it is true that there are loads of tasteless shows on air, there are also countless of very informative channels that you can tune in to. The boob tube is only “crappy” if you choose it to be. However, if you watch informative shows and documentaries, the TV becomes more of a useful tool to gain new knowledge. So, make sure to choose the right shows to watch so that you won’t waste your time watching bad entertainment.
  4. Exercise – Aside from making sure that your mind is constantly being fed with the right ideas and information, your body should also be well taken care of. Ensure that you find time to do some exercises during the weekends or when you have time away from the office. This doesn’t need to be heavy lifting or rigorous training. Just a few minutes of walking or jogging regularly will be very beneficial to your overall health. Coupled with a healthy diet and a positive outlook in life, all the tiredness from a very stressful work week will surely be lessened.

There are so many more new hobbies and activities out there that you can try out. As long as you keep an open mind and you always welcome new learnings, you are on the right path. Working is a necessity but it is important to keep a well-balanced life to be happy.

Taxation of Key Man Life Insurance

A few years ago, one of the best and reputable restaurants in Melbourne faced a serious problem that almost led to its closure. One of its key persons, the head chef, unexpectedly died in a car accident. Luckily, the business took out key man insurance that helped the person left in charge cover the financial difficulty and find a qualified replacement immediately. If it weren’t for the insurance policy, the business would probably never make it.

How about you? Do you know what to do in case one of your key employees gets sick or suddenly dies? Do you have enough funds to cover your company expenses or skill to continue the job that this person left? If you’re running a business, purchasing insurance policies, such as key man insurance, is something that you should consider. This is particularly true if you’re a start-up, since you probably have limited financial resources and cannot hire several employees yet, who can cover the jobs of the others.

key person insurance taxation

But what is key man insurance and how does it work?

Key man insurance is a type of life insurance that is designed to help businesses survive in case of the loss of its key employees. Just like other types of insurance, you pay premiums for key man insurance; and in the event of the unexpected illness or sudden death of your key employees, your company will receive benefits that can be used to continue its operation, such as paying off debt, providing employee benefits, hiring and training a replacement, and getting more resources to help your company gets back on its feet. The benefits that you will get depend upon the policy.

How about the cost and tax treatment of the policy?

When it comes to purchasing insurance, the two of the primary concerns of buyers are its cost and taxes. The cost of key man insurance policy varies, depending on your business and how much it would need in case something happens. You can ask different insurance companies for quotes in order to know your options and understand more about their terms.

As for the tax, the key man insurance has both tax-deductible and non tax-deductible features. Whether your insurance is tax deductible or tax payable depends upon the structure of your policy and the purpose of your purchase. This is the very reason why people are advised to clarify their reason when purchasing such policy, as this will affect the keyman life insurance tax treatment. Usually, the key man insurance used for revenue purposes, such as for replacing lost income and finding replacement, are tax deductible. If you use it for capital purposes, such as paying off debt and loan, the premiums paid are usually not tax deductible.

The taxation of premiums and benefits of key man insurance is very complex and really requires the help of a professional to understand better. The taxation treatment may differ depending on you (as the owner or buyer), the reason for the purchase, your relationship to the insured, and many other conditions surrounding the purchase. If you really want to get more information and determine how this policy will benefit you and your business, talk to an insurance agent or tax professional.