Am I Better of Buying Term Insurance as My Life Insurance Needs Will decrease as I Get Older?
Posted by: BeamaLife Editor on 21 Jul, 2009
Life insurance needs will change but it is best to keep life insurance policy instead of dropping the coverage when you grow older. When an individual ages, a permanent policy becomes an increasingly important asset, because a person’s insurability tends to decrease over time. A term policy provides temporary coverage, but relying on term insurance to help offset other expenses can be a risky move. Why? If the term policy expires, the individual loses the ability to utilize the tax efficiencies of life insurance that increase with age and over time. Following are some other important reasons why you should have whole life insurance policy.
1. It helps to counter inflation and its effects on other assets that are used to supplement retirement income by providing stable cash value accumulation.
2. The tax-deferred treatment of life insurance versus the taxes generated by other kinds of assets (CD, Mutual Funds, Savings Accounts).
3. A valuable financial tool when illness or disability strikes (if the appropriate riders are attached).
4. It provides a legacy to your children/grand children or charity, and offset estate taxes.
5. Greater financial protection in the event that Social Security benefits are reduced.
Please let me know your thoughts and comments.
Interest Rates on Variable Federal Student Loans Dropped to Historic Lows
Posted by: BeamaLife Editor on 8 Jul, 2009
On July 1, 2009, the interest rates on variable federal Stafford and PLUS Loans dropped to the lowest rates in the history of the federal student loan program. These new rates apply only to loans issued on or after July 1, 1998 and before July 1, 2006. The Department of Education sets the rates once each year based on the most recent three-month Treasury bill auction held in May.
The new interest rate on Stafford Loans in repayment status is 2.48%, down from 4.21%. The interest rate on in-school, grace, or deferment status Stafford Loans is 1.88%, down from 3.61%. And the new interest rate on PLUS Loans is 3.28%, down from 5.01%. These rates are in effect through June 30, 2010.
Borrowers with variable-rate federal student loans can lock in the current applicable rate on their loans by consolidating them. The interest rate on a consolidation loan is a fixed rate that is equal to the weighted average of the current applicable interest rates on the loans being consolidated, rounded up to the nearest 1/8th of a point. Borrowers can only consolidate once, so if they’ve done so previously, they won’t be able to take advantage of the new low rates. Also, private student loans can’t be included in a federal consolidation loan. Borrowers who have graduated from school and are eligible to consolidate their loans should go through the Federal Direct Loan Consolidation program at www.loanconsolidation.ed.gov.
For borrowers with Stafford or PLUS Loans issued on or after July 1, 2006, the loans will have a fixed interest rate for the life of the loan. For unsubsidized Stafford Loans, the rate is 6.8%, and for PLUS Loans, the rate is 8.5%. For subsidized Stafford Loans, the interest rate will be reduced as follows over the next few years:
• 5.6% for loans first disbursed on or after July 1, 2009, and before July 1, 2010
• 4.5% for loans first disbursed on or after July 1, 2010, and before July 1, 2011
• 3.4% for loans first disbursed on or after July 1, 2011, and before July 1, 2012
Please call (877) 972-3262 for best college savings plans now.
The Ten Worst Insurance Companies!!!
Posted by: BeamaLife Editor on 6 Jul, 2009
I came across this very interesting report over the July 4th weekend and thought I should share it with our readers. We mostly receive positive comments about companies, but we should be aware about the negative side as well. This is just for your curious reading–your feedback and actual experience with these companies will be highly appreciated.
To identify the worst insurance companies for consumers, researchers at the American Association for Justice (AAJ) undertook a comprehensive investigation of thousands of court documents, SEC and FBI records, state insurance department investigations and complaints, news accounts from across the country, and the testimony and depositions of former insurance agents and adjusters. Our final list includes companies across a range of different insurance fields, including homeowners and auto insurers, health insurers, life insurance companies, and disability insurers.
The Ten Worst Insurance Companies
1. Allstate
2. Unum
3. AIG
4. State Farm
5. Conseco
6. WellPoint
7. Farmers
8. UnitedHealth
9. Torchmark
10. Liberty Mutual
http://www.justice.org/resources/AAJ_Report_TenWorstInsuranceCompanies_FINAL.pdf
