BeamaLife Blog

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 (866) 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?

There’s an old saying that goes, “there are two kinds of people in the world: those that divide the world into two types of people, and those that don’t.”  You have to love the logic of Aristotle, even when it sounds funny, like that old saying does.  But a recent Gallup poll did divide people into two groups – which one are you in?

The question the Gallup pollsters asked Americans what this:  which do you enjoy more, spending money, or saving money?  In years past, the numbers have always been very consistent, and nearly equal, with those who said they like to save money just a bit ahead of those who like to spend it.  But that’s all turning around now.

In this year’s survey, the overwhelming majority (59%) said they enjoyed saving money more.  Just 37% said they enjoyed spending money more.  And if you’re a member of the group of people that like to do math in their heads, congratulations!  You just figured out that 4% of the survey respondents had no opinion.  Don’t take any financial advice from these people…

The survey found that, regardless of income level, the numbers broke down along almost identical lines.  So from the working poor to the super rich, the different isn’t about how much money you have, it’s about your mindset.  And I’m sure that most people would agree that this is a very positive trend.

Now, I know that there’s a big difference between what we intend to do and what we actually do.  I know plenty of peoples who are always planning to lose weight, or to start living on a budget, or to get and advanced degree.  They just never get around to taking that first step.  But with spending, for many people, the first step was taken for them when the stock market crashed and real estate values dropped and layoffs began.

We’ve learned, and are still learning, a hard economic lesson.  Let’s keep this trend going!  Whichever group you’re in – the spenders, or the savers – if you haven’t taken a look at your finances recently, do it today because its black Friday.

BeamaLife.com help you to be in 59% who like to save money rather than spend. BeamaLife.com finds the best rates on life insurance protection, simply complete our Life Insurance Quotes request, and let us do the research for you. Whether you are looking for Term Life Quote, Return of Premium, Universal Life Insurance or Whole Life Quote we search through over 100 highly rated life insurance companies to get the right plan for you.

Okay, so I’m not the biggest fan of country music, but I know a wise saying when I hear one, and recently I read where country superstar Garth Brooks once said “The greatest conflicts are not between two people, but between one person and himself.”  And according to a recent study, that’s becoming more and more true for many Americans.

The Gallup Organization has been tracking people’s average daily spending habits for years, and what they’ve discovered is that whether it’s in person or online, at the grocery store or the gas station, Americans spend more money on average over the weekend days (Friday through Sunday) then they do on other days of the week.  With the typical person’s busy lifestyle, Monday through Thursday don’t offer too many opportunities for shopping or other spending, so the results don’t come as any major surprise.

What is surprising is that spending goes up dramatically during weeks in which an employee gets paid.  This “paycheck effect” is most likely due to the fact that many Americans of all income categories are living paycheck to paycheck, and can’t buy anything – including necessities – until the next paycheck clears.  Certainly part of this problem is the economy.  But a larger part is caused by the fact that most people don’t like to live within a budget.  And all of that spending, when it’s not part of your long term goals, makes weekends the worst days of the week as far as your financial future is concerned.

And that’s where Garth Brooks’ observation comes in.  We all struggle when there is a conflict between our short term wants and our long term goals.  None of us want to continue working long past the time when we should be retired.  None of us want to die leaving nothing but expenses to the ones we’ve left behind.  None of us want to have to depend on others when we’re no longer able to take care of ourselves.  So it’s up to us to create the plan for our future, and then to be disciplined enough to stick with the plan, no matter what.

At BeamaLife, we’re proud to provide you with the information and access to the tools you need to create the plan that will lead to the best future for yourself and your family.  I can’t promise that you’ll never face a difficult decision about how to spend your money, but I really believe that when you’ve got the right plan in place, and when you focus on where you want to be 5, or 10, or 20 years from now, you’ll have far fewer conflicts with yourself. Please call one of our life insurance specialists at (866) 972-3262 to determine the right kind of life insurance & financial plan for you and for your family’s financial security or please complete life insurance quote request form now.

We’re all familiar with the difficulties facing our country and fellow Americans due to the current economic downturn.  But did you know that according to a recent survey, one in four Americans say that at least one member of their family has lost health insurance coverage in the last year?  Those were the findings of a Zogby Interactive poll that I read recently.

Clearly the recession is affecting everyone – not just those who are young or who have low incomes.  The survey found that 19% of families whose incomes topped $100,000 a year had a member who lost their health insurance coverage and 18% of people 65 or older had the same experience.  And even for those with health insurance coverage, having the ability to pay for the medical care they need is becoming more difficult. 

The survey reported that 28% of respondents said that they or a member of their immediate family had, at some point in the last 12 months, been unable to get the treatment they needed.  The reasons were consistent: 67% said they could not afford the treatment, 58% said they did not have health insurance at their time of medical need, and 48% said that their health insurance would not cover the prescribed treatment.

In many cases, when you lose your job, you have the ability to remain on the group health plan through the Federal Government’s COBRA provisions, which have been enhanced during these difficult economic times.  And many states have enacted similar laws as well.  If you’re not eligible for COBRA or state continuation, it pays to look at individual coverage options.  Even a high-deductible or limited coverage plan is better than no coverage at all.

Health care reform may be on the way, with the House of Representative passing their version of a health insurance reform bill this past weekend.  I’d love to hear your thoughts about the proposal!

Aristotle once wrote that “happiness is the highest good” because it’s the only thing that we don’t pursue for the sake of something else.  Think about it.  Why do we work hard?  We may love our work, but for most people, work is about making money.  And having money is about being secure, and being able to do what you want.  And being secure and being able to do what you want is about being happy.  See how this goes?

The Gallup organization recently released a study that found the happiest people in any occupation were business owners.  That’s no surprise to me – the happiest clients I work with are the ones who put in the long hours, who love what they do, and who have chosen their own path in life.  They are business owners, even if the business is consulting, or IT, or even a professional one, like a medical or dental practice. 
When you’re in charge, you always have a superior relationship with your boss!  And if you don’t like the work environment, you’re the one with the authority to change things around.  Don’t like the direction the business is going?  Choose a new direction. 

Now, I know how hard it is running a business these days – I’m a business owner, too.  The business environment is always tough, and sometimes the government and the economy can make life as a business owner even harder.  But I also know that there’s a sense of real satisfaction that comes from making your business a success, and that’s impossible to find when you’re working for someone else. 

When I was just staring out, my mentor gave me this advice:  “when you love what you do, you’ll never work another day in your life.”  I love what I do – I get to help you to protect what’s most important in your life may it be an ability to earn, the security of your family or your retirement income.   So, to all of you who’ve placed your trust in BeamaLife, I want to say “thank you” and “here’s to happiness!”

ING – one of the largest financial services groups based in Europe with a significant presence in the United States, announced plans to split its banking and insurance/investment management operations with the goal of selling off its insurance operations over the next few years.

ING is selling its insurance business to gain approval from European competition authorities for the state-backed bail-out it received during the financial crisis.  The business decision to sell off assets was because of an intervention by the European competition authorities and may take years to unfold as ING will seek to get the best price for these operations to repay the Dutch government.

ING carries secure, investment-grade ratings from all rating organizations and continues to have a broad portfolio of consumer-friendly life insurance and annuity products.  I believe ING have some very distinct competitive advantages in the marketplace and are continue to market these products. In no way should we be concerned with the ING products that our clients currently hold or may be contemplating purchasing in the near future.

I want to share with you these eye popping disability trends. The Council for Disability Awareness (CDA) conducts an annual review of long-term disability claims among the U.S. working population to determine continuing or emerging trends. The 2007 CDA Long-Term Disability Claims Review includes long-term disability insurance claims data from member companies and Social Security Disability Insurance (SSDI) program.

The five key trends are below:

1) The growth of serious disabilities among the U.S. working population continues to be alarming. Over the last 10 years, the number of U.S. workers with long-term disabilities has grown four times the increase in the number of workers in the U.S. workforce. The number of individuals receiving long-term disability insurance payments also continues to increase.

2) Working women and younger employees are more vulnerable to serious disability. The growth in the rate of serious disability for working women is twice the growth rate of disabilities among working men. More younger workers in their 20s, 30s and 40s are experiencing serious disabilities.

3) Favorable trends in cancer, cardiovascular/circulatory and nervous system-related long-term claims may be the result of advances in medical technology. The growth of musculoskeletal, connective tissue, mental disorder and accident/injury-related claims may be related, in some degree, to certain lifestyle choices and personal behaviors.

4) Social Security Disability Insurance approval rates declined to 37.6% in 2007, the lowest point in the history of the program, while applications for disability payments continued to increase, reaching 2.2 million. SSDI payments have not kept pace with the growing financial needs of disabled workers, putting the financial security of more workers and their dependents at greater risk.

5) Financial planning in the event of an income- limiting disability is becoming more critical and urgent for wage earners as the accountability for personal financial security continues to shift away from social programs and employers toward the individual worker.

It is even more evident to protect your most important asset i.e. “your income earning capacity”. Please contact BeamaLife Disability Insurance Specialist at (866) 972-3262 for your personalize quote and advice.

Too often, you have been advised to buy term insurance and invest the difference in the stock market for better return. Even though this sounds convincing on paper, it lacks verifiable facts, ignores feasibility of continue investing in stock market and demonstrate ignorance of life insurance tax advantage. When you calculate long term compounding tax burden of taxable investment, consider the lack of discipline to save regularly and the opportunity cost of term insurance premiums; it is very difficult for this advice (buy the term insurance and invest the difference in stock market) to succeed.

Please let me know if you think otherwise and can prove your opinion with verifiable facts.

Most of the time we view life insurance as an expense - especially the term insurance but the greatest strength of life insurance is the ability to pay a specified amount on the death of an insured. For what can be a relatively small amount of money each year, your beneficiaries (your family and loved ones) can receive a large death benefit. Depending on how soon or how far out in the future that death benefit is received, the dollar paid toward life insurance have the potential for you and your family and loved ones to receive a tremendous risk shift to life insurance company.

You might think of life insurance only as a way to provide for a surviving family after the death of a breadwinner. But, rich families are increasinglyusing life insurance as an “asset” to create wealth for their beneficiaries. By taking a portion of your assets each year to cover the cost of life insurance premiums, you are able to potentially transfer your wealth and would able to create additional wealth.

Please let me know what you think. Do you own life insurance? What kind?

Life insurance is not a one size fits all product. Life insurance is flexible. It provides choices and options. Different policies provide different features and benefits. Universal life insurance is considered a hybrid of other types of life insurance because it offers a combination of a lifetime of coverage with option of building cash value.  The advantage of having a universal life insurance policy over a whole life policy is that the whole life is considerably more out of pocket dollar as it builds mandatory cash value.

Universal life insurance is cost effective for middle age to seniors.   The policy holder chooses the number of years they want to pay for coverage.   If the policy holder wants lifelong coverage, but only wishes to pay premiums for 10, 15 or 20 years etc., a universal life program can calculate premiums for that target.  Furthermore, it is a great option for final expenses policy, because it is permanent and fully underwritten by insurance companies. Final expenses or burial policies are usually for low cost face amounts and are offered by life insurance companies that require no underwriting. However, in order to compensate for the risk of not underwriting, the insurance companies are forced to charge more money. On the other hand, most term companies will not write policies for people after they reach a certain age, and a whole life policy might be expensive and the cash value unnecessary when dealing with such small face values

Today, policies are being constructed in a way to better fit the customers’ needs, not the other way around. With the help of our life insurance specialists who are experts at finding the best policies for customers, it is possible to add ease and simplicity to the life insurance buying process.

Equity Indexed Universal life and variable universal life are liked to stock market performance and also carries extra expenses. Both are very complicated and deceptive policy without any guaranteed. Non-guaranteed universal life or any other type of universal life (equity indexed or variable) can be risky and may result in big unfavorable tax consequences if this policy lapse or cancelled before the death of insured. Beamalife’ insurance specialists are expert in the various kinds of life insurance and guaranteed universal life quote. Visit BeamaLife.com for further information on various life insurance policies and for FREE quotes.

Please let me know if you own any form of universal life and how do you feel about it.