The Lessons from Rising Life Insurance Applications
Posted by: BeamaLife Editor on 28 Dec, 2009
According to the MIB Life Index, life insurance applications in the U. S. are on the rise, with November showing some of the biggest increases in the last two years.
That’s a good thing for the life insurance business, of course, but it points to some very good things that are happening in the economy – and it points out an important lesson that every generation seems to need to learn again as if for the first time.
The MIB numbers showed that for November 2009, non-group life insurance applications rose 4.1% over the same time period last year. The numbers themselves point to the fact that in general Americans are being freer with their money and are still very much aware that a big part of a family’s financial security depends on having adequate life insurance. Taking the numbers apart, however, reveals something that never seems to change.
The largest increase in individually-underwritten life insurance applications came in the 60+ age group – 18.8%, while the lowest increase – 0% – came from those who are 44 or younger. The 45 – 49 age group also increased by 6.7%. Why is it that the younger people – those who have young families, of course, but even those who are single – seem the least likely to have the life insurance they need?
There are a number of reasons. Perhaps they think that their income levels are not high enough to support a quality life insurance policy. Or maybe they think that because they get a small amount of life insurance from their employer, they have no need for anything more permanent. Certainly these young people with relatively few assets are not a “target” for financial services professionals who work on commissions.
These are just some of the reasons that my colleagues and I built BeamaLife.com. We want to dispel the myths that you can’t afford the insurance you need, that your employer-paid life insurance is enough, that as a single person, you don’t need life insurance. If you are a business owner, or work for someone else, or if you’re a freelance or contractor – even if you’re a homemaker raising children and taking care of your family. There is a solution out there, and you don’t have to look very far to find it! Call (877) 972-3262 to find out best life insurance and for most affordable life insurance quotes now.
Is A Life Settlement Right For You?
Posted by: BeamaLife Editor on 14 Dec, 2009
There’s no question that for many people, money is tight these days. And when you’re low on options for increasing your income, your thoughts may turn to that life insurance policy that you’ve been paying on for so many years. You could sell it in what’s called a “life settlement,” but is that the right move?
According to The Wall Street Journal, more than $10 billion worth of life insurance policies were sold this way last year along. The concept is pretty simple. You sell your life policy for less than its face value, and when you die, the third party gets the payout from the policy. You get the cash you need right now.
In my experience, there definitely are times when selling your life insurance to another party makes sense. When you no longer need the life insurance – for example, when your kids are grown and gone, your house is paid for, and you’ve got enough money to cover any estate taxes that will be due when you’re gone yourself.
But it’s difficult to determine just how much your life insurance policy might be worth to another party. If you’re 70 years old and have a policy with a $1 million face value, would you take $250,000 for it today? Or even $400,000?
And there are other factors to be considered as well. There is no more life insurance benefits for your loved one, somebody is waiting for you to die, and there’s plenty of paperwork to go around. According to current industry transaction, you as the seller should not expect to walk away with much more than 20 cents in return for every dollar of the policy’s face value.
So if you’re in a cash crunch, and you’re thinking that selling your life insurance might be a way out, be sure to talk to a couple of expert advisors at (877) 972-3262 before you take the plunge. It may be a good move for you, but you bought the life insurance for a reason. Most people would shudder at the thought of choosing to lose 80% of their investment. You should too. Let me know what you think…
The Rise And Fall Of 529 Savings Plans
Posted by: BeamaLife Editor on 9 Dec, 2009
With tuition costs rising dramatically over the past 20 years, it’s no wonder that financially savvy parents have started saving more money more quickly, just to make sure there’s enough to put the kids through college when the time comes. And 529 college savings plans have been promoted as the number one way to set that money aside and watch it grow.
According to Financial Research Corporation, $15.5 billion when into 529 plans it 2006, and $15.2 billion in 2007. But when the market collapsed, many investors began to shy away from 529 plans, often at the recommendation of their financial advisors. In 2008, the contributions fell to $5.2 billion, and in 2009 so far, the number is just $4.8 billion.
That’s still a lot of money, but like what’s happening with the stock market in general, many Americans are looking for ways to grow their college funds more securely and with greater flexibility – even if that means losing the tax advantages the 529 plans provide. In order to get the tax benefit the 529 college savings plans provide, you have to use the funds for qualified higher education expenses. If your child doesn’t go to college, you’ll pay taxes and penalties on the gains.
If you’re reconsidering what to do with your college savings money, call (877) 972-3262 to speak with college savings specialist. There are many other investment choices that can help you to be prepared when your children head for higher education. As someone who truly believes in proper risk management and multiple uses of money, I recommend you take a look at these college savings option. They offer tremendous flexibility and guaranteed returns and might be just the solution you’re looking for.
Let me hear from you, parents. What are you doing with your college savings money these days?
