Tuesday, November 16, 2010

Where to Turn For Help

About one in four middle-market households admit they do not know how to obtain or reach their financial goals, including buying life insurance. One of the biggest obstacles is lack of information. At Newsad Insurance Services product education is vital to helping clients find the best product for their needs. Almost eight in ten households do not have a personal life insurance agent or broker to turn to when making important financial decisions. Most individual life insurance policies are sold by insurance agents, as 60% of baby boomers prefer to buy their policies from individual agents in a face-to-face meeting. In newer trends, younger generations often gather information about life insurance online and at their place of work. Whether you buy from an agent, have coverage through an employer, or make an online purchase, the most important thing is to make sure that you have life insurance coverage to protect your needs and the needs of your loved ones.

- Article from August 2010 LIMRA Report

Newsad Insurance has over 17 years of life insurance experience. Tom Newsad serves Middletown, Franklin, Monroe, Hamilton, Trenton, and South Dayton.

Friday, October 29, 2010

“Living With Low Growth”

I recently attended an Economic Forecast Luncheon hosted by the Middletown Chamber of Commerce featuring guest speaker Alfred Shepard, Senior Vice President, Chief Investment Officer, First Financial Bank. The topic of Shepard’s speech was “Making Sure the Economy of 2011 and Your Organization’s Financial Plans are Aligned.” I wanted to share some of the main points of his excellent speech:

State of the Economy:

• Economic recovery is on a very low growth trajectory with little margin for error

• Other global economies are in a similar situation…Examples include the euro and dollar as governments are pushing the currency value down and trying to hedge inflation by doing so

• Current federal actions are dictating market results

2010 Projections:

• 1.) Consumer spending will be up

• 2.) Commercial real estate construction will be down

• 3.) Residential real estate construction will likely be up

• 4.) Government spending after the election should flat line down

• 5.) Net exports will be slightly up

These fundamentals affect how the government will forecast the economy.

The U.S. Economy in 2011:

• Consumer spending will show slow growth

• Residential real estate construction will show slow growth

• Business equipment spending will show slower growth

• Commercial real estate construction will show renewed growth

• Government spending will decline

• Net exports can go marginally up or down

Positive Factors:

• Businesses have adjusted to this environment with high margins, high cash values, and rebounding earnings

• Resiliency

• Some stocks have gone up more than usual

Negative Factors:

• Businesses have adjusted to this environment with lower spending, lower investments, and lower job growth

• Businesses have become very dependent on federal actions

• Very low margin for error

Why This Recovery is Different:

• Both consumers and businesses are de-leveraging.

• We are an older country demographically.

• We should look toward countries such as China, Asia, and India to see which way the recovery might be headed. This is the key driver for the investment markets.

Consumer Spending Changes Drive Our Economy’s:

• Income growth

• Wealth

• Borrowing

Expectations Remain Low:

• Lagging factor

• The loss of jobs is still present

• Net job growth may not come until mid 2011

• It could take 20-25 years to return to double digit growth

Likely Actions from New Congress:

• Some tax cuts extended (but NOT all)

• Limited new spending

• New tax credits for business and equipment investing

We must, as a country teetering on a double dip recession, NOT panic! We need to let time heal our economy and come to an agreement that sending out $800 checks to people does nothing but hurt our economic situation and drive up our national deficit. It is important that we remain conservative in our investing.

- Speech by Alfred Shepard, Senior Vice President, Chief Investment Officer, First Financial Bank


Thursday, October 28, 2010

Why It’s Important to Teach Financial Lessons Early…Especially for Girls

Laura Wellington was left in the financial dark when her husband, dean, died in 2002. At age 35, Wellington was a widow with four children; a boy, 9, and three girls aged 3 through 7. She also became the head of her husband’s two small information technology businesses. Like many couples, before her husband’s death, she took care of the day-to-day household expenses, and he handled bigger money issues like insurance and investing.

“I knew a certain amount of what was going on,” she recalled. But the majority of the decision making was left to Dean.

When he was gone, the Ridgewood, N.J., mom had to make sense of everything on her own.

Stereotypes say situations like the Wellington’s usually involve women who lose their husbands late in life, then face financial uncertainty as they puzzle through bank accounts and investments for the first time. But it’s not just older women who leave the big money questions to their husbands. Despite strides in the work force, traditional roles are still common at home. Women as young as their 20s frequently defer financial decision making to their spouses or even their fathers.

I find that still, especially if they’re stay-at-home moms, they’re not in the know, or they don’t have equal say,” said Lyn Dippel, a financial planner with Financial Advantage in Columbia, Md.

With intense study and some professional advice, Wellington has brought herself up to speed. Nevertheless, the experience taught her a lesson. “I will never let my daughters out in the world, or my children out in the world, without a knowledge of money,” said the now 44-year old, who has since had another son and co-founded a new retail business focusing on children’s characters.

Exposure to financial issues is essential to help prepare young people to handle money as adults. Studies show that parents have the single most important impact on financial behaviors and knowledge.

But women tend to get less information- and what they’re taught more often focuses on savings and budgeting than estate planning and the stock market, said Carrie Schwab Pomerantz, president of the Charles Schwab Foundation and a member of the president’s advisory council on financial capability. Few families have frequent conversations about money, and when the topic comes up, they “speak to their daughters differently than their sons,” she said.

As a result, by the time daughters become women, they’re less likely to be familiar with the language of investing, which alone can intimidate. That’s compounded by much of the available information seeming like it’s targeted toward men. “If you watch CNBC, it looks like ESPN,” said Dippel. “It does not speak to women in the way that women want information.”

Another factor is that financial issues can also be very emotional, making it harder for women to take control, said Amanda Gift, a financial adviser at Signature, a Norfolk, Va., wealth management firm. “You couple some level of insecurity or intimidation with huge emotion, and that can make for a daunting task.”

The best way to break down the intimidation factor is to start teaching kids about money as early as possible.

Financial literacy advocates say even toddlers can begin to learn about making choices at the store. By the time kids are in kindergarten, they should be introduced to the concept of money, and within a few years they should have been inside a bank and opened a savings account. Tweens can be taught to balance a checkbook, have some of their own money and be allowed to make choices about spending, saving, and charitable giving. Teenagers should have their own checking account and be introduced to investing issues.

“What’s easiest for parents to do in a busy world is to look for those teaching moments,” said Kathleen Burns Kingsbury, owner of KBK Wealth Connections, an Easton, Mass., consulting company. She suggested having discussions about prices and choices during back-to-school shopping, and using opportunities like watching television to question the money messages being shown.

“If you can make learning about money and learning about finance fun and kind of a game, and start instilling some of these messages early on, it’s going to make a huge difference,” she said.

So can exposure to programs that introduce investing concepts like purchasing cash value life insurance.

Shantia McCarthur, 15, takes part in a program co-sponsored by ING and Girls Inc. that teaches the basics of investing to girls at her Brooklyn, N.Y., school. She was one of 12 girls given a pot of $20,000 to invest in the market in the winter of 2009. “We learned that it’s all about decisions, and your returns depend up the actions that you make,” she said.

The girls have grown their investment by more than 15 percent, and McCarthur hopes that will expand further before she’s ready to take her share to help pay for college. “I think I want to go to Harvard,” she said.

She’s also shared what she’s learned about investing with relatives and friends, and become an inspiration for the fledging investments of the aunt with whom she lives. “I pretty much told her everything I learned,” McCarthur said. “It’s like I’m the girl backstage.”

-Article by Eileen AJ Connelly

AP Personal Finance Writer

Monday, October 18, 2010

Save Money...Plan Ahead

I was recently thinking about the amount of planning and preparation that people put into a vacation or a wedding or purchasing a car or a home in order to make sure that they are getting what they want at an affordable price. Yet, many people do not make any plans for one of the most expensive purchases that they will ever make…their funeral and final expenses. Unless you plan in advance and shop around you are most likely going to have to pay top dollar. The average funeral in the United States costs about $6,500 according to the National Funeral Directors Association. Although the cost of final expenses can vary from state to state, the total sum can easily reach $10,000 according to the AARP.

3 Major topics need to be discussed when considering funeral and final expense funding:

1.) Plan ahead

Talk about your plans with your family members. Be sure to discuss your wishes and find out what is important to them as well

2.) Know your rights

The Federal Trade Commission (FTC) Funeral Rule requires that mortuaries present a price list of services, like a shoppers’ guide, to consumers before their death

3.) Shop around

Make sure that you are not spending too much money. It is a good idea to purchase life insurance to fund this important expense

While families should make decisions about funeral arrangements in advance, they should NOT pay for them in advance. Over time prices may go up and businesses may close or change ownership or a person could change their mind about their desired arrangements.

People who favor a traditional funeral and burial can save hundreds or even thousands of dollars by taking these simple steps. Many people say that they have found great meaning and peace in being able to carry out thoughtful funeral plans that honored their family members in an appropriate and affordable way. Purchasing life insurance is a great way to make sure that you will have the funds to cover your funeral and final expense plans. Be sure to meet with your financial representative to discuss this and all of your important financial needs.

-Tom Newsad

Tom Newsad from Newsad Insurance Services can meet with you. Tom serves Middletown, Franklin, Trenton, Monroe, Liberty Township, Hamilton, Dayton, and Oxford.

Monday, October 4, 2010

Objectives of Estate Planning

The property found in most estates generally falls into one of five categories: personal property, real estate, business interest, life insurance, and government benefits. Unfortunately, at death there is often a great deal of “CONFLICT” due to different ways in which assets pass to the family and other heirs. These conflicts, together with a generally slow probate process, can easily result in a “DELAY” of the estate settlement process of one to two years or more. Considerable EXPENSES may also being incurred if there is a delay in the estate settlement process. However, a custom tailored life insurance strategy can ease the handling of these important financial matters.

Consult a life insurance expert to discuss further.

-Tom Newsad

Tom Newsad does estate planning in Middletown, Hamilton, Trenton, Franklin, Carlisle, Monroe and surrounding areas. Contact Tom at www.newsadinsurance.com

Tuesday, September 21, 2010

Reaching Retirement Age

It is a good idea to review your portfolio with your financial services provider more frequently as you reach retirement age. Being sure to not draw out more than 6-8% per year in retirement savings can be beneficial in preventing you from spending down your account too quickly. You may also want to consider moving your risky investments to more secure or fixed investments. This could help prevent you from losing money in market downturns. It is also important to have adequate life insurance to offset any losses in your portfolio and to provide your spouse with lost income.

For more information visit http://www.newsadinsurance.com/

-Tom Newsad

Friday, September 10, 2010

2010 Life Agent Summit

I met with 40 of my colleagues Tuesday August 31, 2010 at Grange Life Insurance Company’s home office in Columbus, Ohio to discus the fundamentals of social media marketing. The discussion included:

• Using Facebook as a way to connect with your target market by using a professionally driven business page to educate consumers and build a stronger relationship base network of clients

• Using a custom driven website to attract life insurance clients

• Using clear, simple, easy to understand terms when describing insurance jargon to clients or talking about insurance policies

• Marketing to a broader area including Liberty Township, Monroe, Middletown, Hamilton, Fairfield, Oxford, and Trenton for all insurance services

• Understanding compliance and the way it affects businesses

Wednesday, August 25, 2010

ART Life Insurance vs. Level Term Life Insurance

Knowing the difference between annual renewable term life insurance and level term life insurance can help consumers understand the differences in term life insurance. ART or annual renewable term insurance is the lowest costing life insurance but cost is only fixed one year at a time and follows a predetermined schedule provided by each life insurance company. The price also changes annually. In contrast, level term life insurance provides fixed premiums and fixed face amounts for the “term period” that you select: 10 year, 15 year, 20 year, or 30 year. Another important distinction is that term life insurance does not provide cash value savings

Newsad Insurance Services is a proud supporter of Life Insurance Awareness Month September 2010.

Monday, August 16, 2010

Universal Life Insurance

A great way to save money is to purchase life insurance. One type of life insurance is universal life insurance, which is a form of whole life insurance. Universal life insurance blends whole life insurance with term insurance and offers a competitive interest rate and guarantees. Where else can you currently earn 4.5% interest and have full access to your money?

Universal life insurance, like other types of insurance, should always be purchased from an agent or broker.

-Tom Newsad
Newsad Insurance Services

Monday, August 2, 2010

What Is The Purpose Of Life Insurance?

Financial advisors as well as some insurance advisors tell clients that insurance should generally be used for 2 purposes:

• The first purpose is to cover all final expenses including debts and funeral and burial costs
• The second purpose is to ensure that your family will be able to continue to maintain their lifestyle once you are gone

These are 2 primary reasons to purchase life insurance and should be talked through with a financial advisor or life insurance agent if you have questions about or are considering purchasing life insurance.

Life insurance can be a simple low cost alternative to providing for the future of our loved ones if we do not accumulate enough wealth to do so during our lifetime. Purchasing a life insurance policy can be a key element in estate planning and a legacy for surviving beneficiaries such as spouses and children.

For additional information, contact Tom Newsad at tnewsad@cinci.rr.com or http://www.newsadinsurance.com. Tom is a Grange Life Pacesetter agent serving Trenton, Middletown, Oxford, Franklin, Liberty Township and surrounding areas in Ohio, Kentucky, and Indiana.

Tuesday, July 27, 2010

Keeping It Simple with Web Marketing

When creating a web marketing program for your business, it is important to work closely with the home office Life Marketing Department to gather material and to build a foundation for your web marketing program. Finding ways to educate your clients in a simple format can be valuable to your customers. Building an educational and easy to understand website and/or a Blog for your business can provide a helpful and informative resource for your current customers and a great way to attract new customers. Creating a website or a Blog puts the name of your business out on the internet and can attract search engines like Google and Yahoo. Having your company’s name appear in major internet search engines such as Google and Yahoo can help to further market your business and appeal to new customers.

- Tom Newsad
Insurance Agent
Serving Middletown, Ohio and its surrounding communities

Monday, July 19, 2010

Don’t Worry, You Can Always Make Changes to Your Life Insurance Policy

Remember, when a client purchases life insurance, he or she always has the right to decline coverage or ask to increase protection, especially if he or she has completed a physical and answered all of the health questions correctly. The client may also adjust the face amount of the policy based on his or her financial needs. The client’s full disclosure in this matter makes the underwriting in these cases accurate and allows for quicker issuing of the insurance contract. Be sure to work closely with your life insurance agent when making these important financial decisions.

-Tom Newsad
Insurance Agent
Middletown, OH

Thursday, July 1, 2010

Life Insurance Is an Investment

There are many different kinds of debt that you need to make sure are protected at your death. Some examples include mortgages, home equity loans, car loans, student loans, credit cards, life insurance loans, and 401K loans.

Life insurance is an investment just like any other and you should do as much diligence with your life insurance provider as you would with your investment advisor. That is why I believe in a P.A.R.S. review annually. P.A.R.S. stands for Policy Annual Review Service. Even if it is just a phone call to update records, this review is a very important part of any insurance professional and client relationship.

Having no protection at all can be very costly. Just making sure you have coverage of at least 2 times your annual salary can provide for basic life insurance needs.

A complete review of your financial needs with a licensed agent like Tom Newsad at Newsad Insurance Services can provide you with peace of mind now and into the future.

Newsad Insurance Services has been serving client’s life insurance needs in Middletown, Ohio since 1996. Visit Newsad Insurance’s informational website at http://www.newsadinsurance.com or call Tom Newsad today at 513-424-6871.

Monday, June 21, 2010

Explaining Life Insurance Policies

A good agent can go a long way toward explaining your life insurance policies to you, and it’s highly recommended that every family or business person work with an experienced agent who will take the time to explain what policies they offer. Here are some important things that you want to know from your agent.

• How much money your loved ones will receive when you die
• How long your policies will be in force
• How much money you are paying
• If and when your policy eventually ends
• Whether or not you are building any cash values on your policies

The answers to these questions determine what kind of policies that you have.
While you hope that money would never replace you in your loved ones hearts, a large death benefit (Term Life Insurance) amount can go a long way toward keeping groceries on the table, making sure that you don’t lose your house or that dream of a college education for your children.

Term Life Insurance is setup to provide insurance for a set period of time; 1 year term, 10 year term, 15 year term, 20 year term, and 30 year term. The advantage of Term Life Insurance is that it offers the most protection for the least amount of money, especially for younger people.

Although permanent life insurance can be more expensive, it does have its place as it provides life long guarantees, especially for seniors and older Americans. The insurance companies know that when you purchase these policies they will eventually have to pay on those claims.

The main thing to think about when purchasing life insurance is how the insurance money will meet your family’s needs, especially if you were to die before paying off all of your bills. That is why working with an agent can be beneficial. Agents will help determine your true needs with their experience and product knowledge.

Contact Newsad Insurance Services for all of your life insurance needs.

-Tom Newsad

Thursday, June 17, 2010

Smokers vs. Non-Smokers

Remember, life insurance companies base their issuing of life insurance on age, sex, and health status. Smoking has been proven to increase your health risk as you age and to make it more expensive to purchase life insurance. For these reasons, finding an independent agent to sell you life insurance is even more important for smokers. Some companies do specialize in writing life insurance for smokers at lower rates, so be sure to always shop around for the lowest rates when buying life insurance on smokers and non-smokers. When agents are captive to their carriers they may not always find the best rates for their clients. For this reason, independent agents offer the best avenue for “shopping."

- Tom Newsad

Life Insurance Isn't Really That Scary

Most people don’t really want to talk about life insurance. Words like death and mortality, and the costs associated with funerals and final expenses aren’t topics anyone likes to talk about. While it’s definitely not an issue at the top of anyone’s list, there are some steps you can take that can make the process a little less overwhelming.

First, get the scoop from a qualified source. Think of that first meeting as more of an educational experience than an “answer everything” session. I like to ease into things with a little fact finding process, painless to you, called the DIME process, (Debt, Income, Mortality, and Education) or if you prefer the official phrase, Life Insurance Needs Estimator. I know, it sounds daunting, but really it’s just a matter of sitting down with your advisor and answering a few questions. And don’t worry, the questions are easy…they’re all about you after all.

After you ace this quick Q&A, your advisor will have the tools to start working towards a more customized plan for you, one that includes all those unique, individual circumstances.

For example, while making sure that funeral and final expenses will be paid for is important to older Americans, younger families need to also plan out how they will pay for their children’s education, especially while the parents are in their earning years. Your insurance agent should answer those important questions like protecting income and providing future education for all family members. Here’s a good starting point: Be sure to provide 2 years of annual salary for loved ones to readjust after the passing of a family member.

Next, your life insurance and financial advisor will help you with those finer details such as taking mortgages, credit card debt, and student loans into consideration. Consulting with your estate planning attorney or tax advisor will round out the remaining points of a sound financial plan.

Oh, and keep in mind that at your death, your investments do not pass through probate. Probate is a legal process that takes place after someone dies. Probate usually involves a lot of paperwork and court appearances and includes proving in court that the person's will is valid, identifying and inventorying the deceased person's property, property appraisal, paying debts and taxes, and distributing the remaining property according to the will. Only life insurance products provide a tax free distribution of death benefits.

I hope you found this helpful in taking those first steps towards securing your future. For all of your life insurance needs, contact Newsad Insurance Services.

- Tom Newsad