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STRATEGIC ISSUES...ONLINE    
For week of May 9, 2005, Issue #211
 
Featured Articles:
 
1.  Putting Life Insurance on Children
2.  Focus on Fraud: Fraud Red Flags
3.  Tech Tip Weekly:  MS Outlook Express - Killing the Messenger
4.  Compliance Calendar
 
1.  Putting Life Insurance on Children
 
If you have ever wondered whether you should carry life insurance on your children, here are a variety of reason's both for and against this decision.
 
Financial Security
Traditionally, you take out life insurance to provide for the financial security of dependents.  The policy should provide funds to replace the insured's income and to pay off debts.  Neither of these reasons applies to young children.  They don't generally have any significant income, and they don't usually have any debts.  Some parents might want to carry a modest amount of insurance to cover funeral costs for their children in case the unthinkable happens.
 
Insurability
Another argument is that by taking out a policy at a young age, you help to guarantee insurability as the child grows older.  This could be important if the child develops a major illness later in life.  The problem is that if the child does develop a serious illness, insurance could then become very expensive or limited in amount.
 
Insurance as an investment
Some advisors suggest that parents should take out a whole life policy on their children.  These policies include a savings component to build up cash value in the policy.  You could then use that value for education expenses or other needs.  But others say that there are cheaper and more efficient ways to save than by using life insurance.  For example, putting money into a tax-advantaged Section 529 plan might be a much better way to save for college tuition costs.
 
The bottom line
Although a majority of financial advisors would probably argue against life insurance for children, there may be some situations when it makes sense.  One thing is clear.  You shouldn't take out a policy just because it is offered to you or because others are doing it.  Insure your kids only if you've done your homework and know exactly why you need the insurance.
 
2.  Focus on Fraud: Fraud Red Flags
 
As a business owner, or supervisor/manager or other member of company management, the following may seem superfluous, but take it to heart, that these could be red flags for possible fraudulent activities by employees against the company:
 
    Close association with suppliers and other key people
   
    Rapid turnover of key employees whether by quitting or firing
 
    Familiarity with operations (including cover-up capabilities and in a position of trust)
 
    Operating on a crisis basis
 
    Little/no attention paid to details
 
These are merely the tip of the iceberg.  Managing a company's fraud risks is everybody's business; we can help, give us a call.
 
3.  Tech Tip Weekly: MS Outlook Express - Killing the Messenger
 
In some cases, when you start MS Outlook Express 6, it automatically kicks in MSN or Windows Messenger (assuming Messenger wasn't running already).  MS Outlook Express does that so it can show you the status of your Messenger contacts.  Icons next to your Messenger contacts whether they're online or not.
 
If MS Outlook Express starts Messenger automatically, as soon as Messenger kicks in, everybody who has you on his or her Messenger Contacts list sees that you've signed in.  Many people feel that's an intrusive, time-sapping side effect of starting MS Outlook Express.  It's also an incredibly stupid security exposure, hanging a "kick me" sign on your computer for no good reason at all.  If you agree, it's easy to turn off:
 
1.  Choose Tools -- Options -- General.
 
    MS Outlook Express shows you the Options dialog box.
 
2.  Uncheck the Automatically Log On to Windows Messenger box.
 
    Messenger calls it sign in, not log on, but what's a foolish inconsistency among friends?
 
3.  Click OK.
   
    The next time you start MS Outlook Express, it doesn't attempt to start Windows Messenger.
 
4.  Compliance Calendar
 
May 11
-Employers deposit Social Security, Medicare and withheld income tax for payments May 4, 5, and 6.
 
May 13
-Employers deposit Social Security, Medicare and withheld income tax for payments May 7, 8, 9, and 10.
 
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