Life Insurance and Financial Planning for IT Professionals
We serve very large numbers of IT professionals from all nationalities every day and we at BeamaLife are extremely familiar with your unique financial situation. You can be a W-2 employee or work as a consultant, developing or testing software or managing a project or an IT director, we can give you tailor-made information and research on which to base your key financial decisions. Following are some of the key questions or concerns we get from your peers everyday:
1) What kind of life insurance is right if I am on a work visa?
Globalization is a huge factor in the American workforce, as evidenced by the scores of foreign nationals from India, China, and elsewhere providing IT services to U.S. companies. If you are one of them, know that a wide range of life insurance is available to you and the financial security of your family.
Determining the right policy of course depends on your specific situation, which is why we are here to find the perfect match. Most likely, this will involve a combination of whole life insurance and term life insurance. This combination is the best way to balance attractive future returns with the realities of what you can afford now (given household expenses and possible remittances back to your home country). We also know which life insurance companies are most affordable for if you are on EAD, H1b, L1 or any other kind of immigration status. Please call (877) 972-3262 to speak with one of our specialist now about your life insurance protection need.
2) What is the best way to save for my children’s education?
You understand the value of a great education and there is no more important financial commitment than this after your home mortgage. The problem is, with tuitions and other costs where they are, it is very important that your start college savings very early age of your children/child.
The answer depends on various factors, especially how old the children are. If, like most, you are starting to think about this when your children are fairly young, the best option is a whole life insurance–based college savings plan. This is because over 12 to 15 years life insurance policies can accumulate a handsome sum with which to pay education costs. You may have heard of 529 college savings plan – investment accounts that let your money grow tax-deferred until your child enters college. Whole life insurance gives you almost all the advantages of 529 plans while eliminating the disadvantages. Whole life insurance–based college savings plans are also more flexible; allowing you to use or borrow against your cash value for expenses other than college if you want or want sent you children abroad without any penalty. And they will pay to your family a death benefit if you die or continue the college savings plan if become disabled.
If your children are only a few years from entering college, a financial aid planning is a way to go. We’ll show how to qualify for financial aid with proper restructuring your current savings and investments.
3) How much life insurance do I need to cover my family?
There are two standard ways of calculate how much life insurance need
1. Human Life Value Approach
This method looks at your income and age and estimates how much your family would lose if you were suddenly removed from the picture. For example, as an IT professional you may be 35 to 40 years old and might make around $80,000 to 100,000 a year. If you were to die, your family’s financial loss would be approximately $2.5 million (annual income X remaining years to work). This would therefore be a good ballpark amount to be insured for.
2. Need-Based Approach
This method involves estimating your family’s financial burden going forward and basing your insurance policy on that. Here is a link to our life insurance calculator for doing this.
4) What is the best way to save for retirement and how much to contribute to your 401k?
There are many ways to save for your retirement like IRA, 401k, rental real estate, mutual funds and stock market investment. We have observed many of your peers invest in the stock market watching fellow stock traders. But most of your peers lose money in the stock market after year to two and some have lost their jobs too (rather than working they were researching and trading their own portfolio)! You can contribute to your 401k up to the employer matching (usually 3% of salary). Getting your own primary home is a good idea if you are stable. But Whole life insurance will give you big bang of your bucks! Whole life insurance can work as tax advantage retirement savings with very handsome rate of return, providing life insurance and disability protection.
Please call (877) 972-3262 to speak with one of experienced specialist about your life insurance and financial planning need or complete this short form for life insurance quote & financial planning proposal now.
