Replacing the Irreplaceable

Key Employees: Replacing the Irreplaceable

            Your key employees are valuable assets of your company.  Like other tangible assets, your business needs to be protected against the loss of their services due to an untimely death.

            What losses might your business experience with the untimely death of a key employee or a business owner who is also a key employee?  Resulting business losses might include:

·        Time and dollars needed to find, hire, and train a replacement.

·        Reduced company productivity due to other employees being distracted.

·        Lost business opportunities.

·        Lost suppliers or customers.

·        Loss of bank credit.

·        Low employee morale.

Who are your key people?

            Who, besides yourself, are your key people?  The following criteria may help define “key” people:

·        High salary:  Indicates a high value put on the employee.

·        Decision-making power:  Employee helps control the direction of the business.

·        Frequent direct client contact:  These people maintain a substantial power base due to customer relationships that the business depends upon.

·        Crucial position:  Certain positions are crucial to the business depending on its type; for example, engineers, production management, product development, or sales.

·        Special talents:  People with special knowledge or unique talents that are difficult to replace.

The business is more than just the business owner.

            The success of most businesses depends on more than the expertise or ideas of the business owner or owners.  What started our as a “one-man” shop has grown into a mature business as more people joined the enterprise.

            Some of these people are “key persons” who are as critical to the day-to-day and long term success of the business as the business owner.

            Much business planning is devoted to dealing with the business owner and what would happen if he or she dies prematurely or becomes disabled.  But what about the other key persons?  A loss of a key person can be catastrophic to a business if there is no plan in place to deal with his or her replacement.

            Having a contingency plan in place is good business planning and shows that the business owner recognizes the contribution of the key persons.

-article taken from  Columbus Life Advanced Markets Insights, Columbus Life Insurance Company, 400 E. 4^th Street, Cincinnati, OH 45202-3302. From September 2011http://www.newsadinsurance.com/

What is Life Insurance?

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            As agents and advisors, our creed is to help society help itself.  We support the American public in the most personal and meaningful ways.  When everyone else is at the door with his or her hands out, we are there to give and aid those who need it most.  There is no doubt that the insurance industry is one of the solutions to America’s economic woes.  Let us not forget this as we go about our everyday business lives.

            Recently I delivered a death claim to a client.  This process was two parts: I met with my client in the comfort of her own home and was able to spend a few minutes with her discussing recent events, and I assured her not to worry, that I would process the claim in a timely manner.  Ten days passed and I received a check in the mail for the death benefit amount and interest.  I reconnected with my client and returned to her home the next day.  When I saw her she seemed to have shrunk, her face swollen with grief and sadness.  She had lost all of her normal happy glow.  She said that she loved her husband and never thought she would need to call me.  When I presented her with the check, all of her emotion came to a head.  I instantly hugged her and offered my sincerest apologies.  Her lips were barely able to move, but the words “thank you” came out.  Every situation in which I present a death claim, no matter if these are clients I have known for my entire career or for just a short time, lives with me every day.

            I am grateful to be able to offer my services to my clients.  An agent that I worked with many years ago told me that when an agent has a death claim, it is his or her “turn to shine”.  What I do is not just sell life insurance, but also provide a lifetime of security.

Thomas Newsad sells life insurance, annuities, long term care, and disability insurance and serves communities such as Middletown, Franklin, Monroe, Lebanon, Trenton, Hamilton, Oxford, Miamisburg, West Carrollton, Springboro, and more.  For more information, call Tom Newsad at 513-424-6871.

Indexed Annuity Magic: How Do They Do It?

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One of the greatest mysteries in the indexed annuity market is how insurance companies are able to offer market-linked gains on an annuity with a principal protection feature.  Many are familiar with the strong guarantees that fixed annuities offer, but it comes at the cost of low potential for gains.  On the other hand, variable annuities provide unlimited potential for gains, but you must be willing to stomach unlimited risk to achieve it.

The indexed annuity is a unique gem amidst a pebble-lined beach—but how is this awesome feat accomplished?  How can insurance companies offer purchasers market-linked interest without the risks associated with VAs and still afford to offer a guarantee?  It is actually pretty amazing and extraordinarily simple to accomplish.

For comparison, let’s explore what the insurer does with the purchaser’s money when offering fixed annuities.  When an annuity purchaser makes a premium payment into a fixed annuity, the insurance company turns around and uses that premium to purchase bonds.  Generally, the bonds are high quality and they mature at the same time the surrender charges expire on the purchaser’s annuity (i.e. I buy a 10 year surrender charge annuity and the insurance company then purchases 10 year Grade “A” bonds to cover my annuity’s guarantees).  This provides a relatively safe investment vehicle for the insurer to make enough interest off of in order to earn their spread/profit.

So, just for simplicity’s sake, let’s make the assumption that the bonds are paying 4% interest and the insurance company is crediting 3% interest on its fixed annuities.  This means that the difference of 1% is what the insurance company is using to cover its expenses and anything that is left of its spread/profit.  Makes sense, right?

OK, let’s move over and apply this to fixed annuities: instead of putting 100% of the purchaser’s premium payment in bonds, with an indexed annuity, the insurance company puts about 97% of the premium payment in bonds.  (Some companies might use 96%, 98%, etc. of the premium payment; you get the idea!)  The bond covers the indexed annuity’s annual 0% floor, which protects the annuity purchaser from market losses.  It also covers the minimum guaranteed surrender value, providing a return of premium plus interest to the beneficiaries in the event of death, in addition to providing the same benefit to the purchaser if the indexed crediting does not perform.

Now, let’s get to the other 3% of the purchaser’s premium payment, where the real magic happens: this portion of the purchaser’s premium payment is used to purchase options.  It is the options that provide the index-linked interest on indexed annuity contracts. Today, we might take that three cents of our one dollar to the options-seller and ask that he sell us an option for the S&P 500, using an annual point-to-point crediting method with a cap being used to limit the exceeded interest.  The option-seller might tell us that our three cents will buy our customers a cap of 3.85%, which isn’t so hot.  Then again, the S&P 500 is relatively low right now.

However, if the market suddenly goes back up, and the S&P 500 returns to 1500 the next month, that option-seller will likely offer a much higher cap for our three cents.  (After all, if it is already at 1500, what is the likelihood that the S&P 500 will increase tremendously over a one-year period?)

So there you have it, folks.  No tarot cards, no voodoo dolls—just plain and simple math.  And even though the logic behind indexed annuities is rather simple, it is magical nonetheless.

Author: Sheryl Moore, President and CEO of AnnuitySpecs.com and LifeSpecs.com

Taken from Annuity News.com from article posted 9/7/2011

Your Individual Life Insurance Needs

All clients interested in purchasing life insurance through Newsad Insurance Services will receive a free life insurance needs estimator, the DIME (Debt, Income, Mortality, Education).  Through a simple process of collecting data we are able to come up with a current level of life insurance needed.  At Newsad Insurance Services, we believe in custom tailoring your life insurance needs to your individual needs.

Tom Newsad offers life insurance, disability insurance, and fixed equity indexed annuities in Middletown, Trenton, Oxford, Hamilton, Monroe, Liberty Township, Dayton, Moraine, and Miamisburg.  Contact Tom at tom@newsadinsurance.com  or at www.newsadinsurance.com.

The Truth about Fixed Index Annuities: Misperceptions vs. Realities

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When it comes to annuity products, fixed index annuities (FIAs) have been around for a relatively short amount of time.  Created in 1996, FIAs are insurance products, not investments, that offer the opportunity for some interest potential while protecting against market risk.  However, as with many new ideas, misperceptions abound.

Misperception #1:  FIAs are too complex to understand.

Reality:  Understanding FIAs involves learning some basic terms because interest earnings are calculated in various ways:

• FIAs offer the ability to earn interest based on changes in an external index, such as the S&P 500, while offering protection from loss of principal.  However, at no time is clients' money invested directly in the market because because they do not actually own any stocks, bonds, index funds, or other investments.
• When a person buys an FIA, the insurance company provides a guaranteed minimum value, and guarantees a minimum rate of interest.
• Insurance companies offer resources to ensure a full understanding of FIAs to help people make educated financial decisions.
• As with other fixed annuity products, FIAs offer additional benefits including tax deferral, a guaranteed minimum value, a death benefit, and the option for guaranteed lifetime income.

Misperception #2:  FIAs have high fees.

Reality:  Like many financial products, FIAs carry some fees.  The insurance company uses these fees to help support its guarantees and provide valuable benefits including:

• The potential for interest based on changes in an index.  FIAs provide purchasers with the opportunity to benefit from a portion of market index increases without directly participating in the market.
• Protection from loss of principal if the market index declines.
• A guaranteed minimum value, credited with interest at a guaranteed rate.
• Tax deferral.  Taxes are not paid on interest earned on an FIA until the money is withdrawn.
• Lifetime income option.  Like most annuities, FIAs can be converted into a stream of guaranteed lifetime income.

Misperception #3:  FIAs tie up your money for years.

Reality:  Many of today's FIAs have surrender periods of less than ten years.

• Some of today's FIAs have surrender periods as short as five years.
• Most annuities give you access to at least a portion of your money, such as 10%, after the first year with no surrender charges or other contract penalties.
• Many FIAs offer multiple ways to access funds without penalties..
• Features, such as penalty-free withdrawals, loans, nursing home provisions, and full accumulation value paid to beneficiaries at death before annuity payments begin, are now common.

Misperception #4:  FIA values must be annuitized.

Reality:  Most FIAs offer multiple ways to access accumulated values without taking annuitization.

• While some contracts have certain values that may be available only through annuitization, most current product designs allow for lump-sum access after the surrender charge period.  Many offer the option (either built into the contract or available as an optional rider with an additional cost) for a guaranteed lifetime withdrawal stream.

Misperception #5:  If you die, the insurance company keeps all of your money.

Reality:  FIAs let you choose a beneficiary.

• Your beneficiary will be entitled to receive your contract's death benefit if you die before you start taking annuity payments, or if annuity payments have been initiated, to receive any remaining guaranteed payments under certain annuity options, in lieu of a death benefit.
• The exact amount the beneficiary receives will depend on the terms of the contract, but most current product designs provide a death benefit equal to the accumulation value, which reflects the interest credited to the annuity as well as any previous withdrawals or amounts deducted from the annuity.

An FIA may be a good solution.

The reality is,  with the volatility of the financial markets in recent years-combined with the limited availability of retirement income sources such as pensions-Americans have a greater responsibility to prepare for their future.

FIAs can be a great addition to an overall retirement income plan, but they're not right for everyone.  Purchasing an annuity is an important decision-and one that should be made only after consulting with a financial professional.

-Information published by Allianz Life Insurance Company of North America, June 2011

Seven Wonders of Life Insurance

Seven Wonders of Life Insurance
Your clients can address their financial problems with these seven life insurance solutions.
Here are some disturbing facts from LIMRA about U.S. life insurance ownership and the attitudes of consumers toward our products.
7 Life Insurance Facts

1. LIMRA’s 2010 Life Insurance Ownership Study found that 30% of U.S. households (35 million) have no life insurance protection.

2. In 2009, insurance companies issued 9.4 million individual life insurance policies in the U.S.—about one million fewer policies than they did in 2004.

3. About seven in ten middle-market households agree that life insurance is the best way to protect against the premature death of a primary wage earner.

4. The two top reasons Americans have life insurance are to cover burial and final expenses and to help replace the income of primary wage earners.

5. One in four households plans to buy life insurance for themselves or another household member in the next 12 months, but many are unlikely to follow through with their plans.

6. Twenty-four percent of households with children who are under the age of 18 want to speak with a financial professional about their life insurance needs, but they may not proactively initiate contact with an insurance producer or with a life insurance company.

7. About one in four middle-market households (those with yearly incomes of $35,000 to $99,999) admit they don’t know how to obtain or reach their financial goals. But only 18 percent of them want to speak with a financial professional about life insurance.
These are the problems that we face. Here are the seven solutions:

1. Life insurance buys time: it allows loved ones to focus on their grief by helping to pay for the funeral and other costs.

2. It provides a fresh start: it lets loved ones start with a clean slate by helping to pay off credit card bills, outstanding loans, and even the mortgage.

3. It generates income: it helps replace lost income for years to come so that surviving family members can continue to pay for life’s necessities.

4. It offers flexibility: it gives a surviving spouse the chance to take time off from work or switch to a job that offers a more flexible work schedule.

5. It creates opportunities: it can provide funding to start a business, or pay for schooling so that surviving family members can train for new careers.

6. It funds the future: it offers a way to fund longer-range goals like a college education for the kids or a secure retirement for a surviving spouse.

7. It leaves a legacy: it gives parents the change to leave future generations with the legacy of long-term financial security.
Taking the first step
Problems and solutions go hand in hand, but if we want to use these solutions to help our clients and prospects, we must first start with digital marketing. This means taking your digit and using it to push the buttons on the telephone, because everything starts with a call to a prospect.
September is Life Insurance Awareness Month. Use the resources from the LIFE Foundation to reach out to your clients and prospects to educate and motivate them in their life insurance buying decisions. Go to LIFE’s website at www.lifehappens.org to learn what is available to you and your clients.
-article by Marvin Feldman, CLU, ChFC, RFC
-article taken from NAIFA’s Advisor Today July/August 2011 publication

http://www.newsadinsurance.com/

No More Excuses

Don’t let these five excuses stop you from getting the life insurance you need!


1. “It’s too expensive.” (Answer: not having adequate coverage could be more costly to your family.)

2. “I haven’t gotten around to it.” (Answer: there are no guarantees in life, so don’t procrastinate!)

3. “I prefer to put my money elsewhere.” (Answer: this might work if you are sure you’re going to live a long life…..)

4. “I worry about making the wrong decisions.” (Answer: a qualified insurance professional can answer all of your questions and guide through the buying process.)

5. “I have life insurance through my job.” (Answer: employer-provided coverage is a nice benefit to have but it often is not enough to cover all of your family’s needs and may end if you leave your job early.)

-taken from Real Life Stories, Life Foundation, Million Dollar Round Table Atlanta 2011

Insurance Agent in Trade Association

Tom Newsad has been accepted to the Million Dollar Round Table, an association of life insurance and financial services professionals.

He owns Newsad Insurance Services, 3121 Central Avenue, Middletown.

The Million Dollar Round Table is an international, independent association of more than 31,500 members, or less than one percent of life insurance and financial services professionals in 80 countries and territories, according to its website. To be a member, one must pay to apply, according to the organization.

According to Newsad, he will go to the Million Dollar Round Table’s meeting June 5 to June 8 in Atlanta, Georgia.
-staff report
Hamilton Journal News, 6/1/11
Middletown Journal, 6/1/11

Support for Soles4Souls

Newsad Insurance Services and Million Dollar Round Table and the MDRT Foundation are partnering with Soles4Souls to raise funds and collect shoes for children and families. Shoes are an important part of life. Whether they help us run faster, stand a few inches taller, or showcase our unique styles, it is hard to imagine life without shoes; however, for more than one billion people worldwide shoes are a luxury.

The need for shoes is great. Most people don’t know that one of the common diseases that children in the developing world die from is hookworm, which is easily preventable with a simple pair of shoes. Shoes not only keep people healthy, they also enable children to get an education. Since it’s founding in 2005, Soles4Souls has distributed more than twelve million pairs of shoes to people in more than 125 countries.
Newsad Insurance Services supports Soles4Souls, and agent Tom Newsad plans on taking shoes to donate to this cause at the Million Dollar Round Table annual meeting, taking place June 5th through June 8th in Atlanta, Georgia.

Key Employee Incentives that Work for the Employer

Remember, most business owners can use qualified plans to reward their key employees; however, there are limitations to this because what one does for one employee he must also do for another. That is why an individual permanent style life insurance policy is an attractive feature, or the non qualified deferred compensation plan (or NQDC). This is an agreement between the employer and the key employee in which they agree to pay the employee an additional retirement plan at a future date.


Employers can choose to reward and give an individual employee his own benefit level. Two common NQDC plans are salary deferred and supplemental executive retirement plans, commonly called SERPs. Under salary deferred plans, the key employee agrees to defer some portion of his pre-tax compensation from his salary or bonus and is immediately vested in his contributions. Some win-win scenarios for both employer and employee are:
1. typically, you see high first year cash value life plans

2. there is underwriting flexibility with guaranteed issue and simplified issue, depending on the number of lives involved

3. full underwriting, down to one life

4. portable contracts

5. the policies can be guaranteed whole life or universal life policies.

Another way for an employer to offer small business owners benefits is through what are called executive bonus plans (remember what employers can do with a bonus). This is also referred to as a section 162 bonus plan. The employer pays a bonus to an employee in an amount equal to the annual premium on the life insurance policy for that person. The individual becomes the owner of the policy and has the right to name a beneficiary on the policy. The employee can access the cash value at retirement age through tax free loans and withdrawals to help supplement his retirement income. Typically executive bonus plans work for clients who don’t care much about “golden handshakes” while REBAs allows business owners to incentivize key employee(s) to stay with the company.

When employers pay a covered employee a bonus sufficient to cover the life insurance premiums, the employer may increase the bonus to also cover the employee taxes (a double bonus). For all of your Business Life Insurance needs contact Newsad Insurance Services, serving Middletown, Monroe, Lebanon, Hamilton, Trenton, and Oxford. Tom Newsad is a 3 year Million Dollar Round Table Qualifier. Contact him at www.newsadinsurance.com.

Life Insurance Begins at Age Fifty

If your term life insurance policy is ending but your needs continue, consider the cash value alternative of permanent life insurance. One way to continue your life insurance is to simply renew your term protection; however, if your health has changed, you may be limited on the type of policy you can buy. A permanent life insurance policy, or whole life insurance policy as some people call it, may provide a steady investment. In contrast, many people believe whole life insurance as an investment is controversial, but that is because it takes a policy many years to show value. The first year’s premium largely goes toward commission and other expenses, so your cash value will lag the amount paid in premiums in the early years. It typically takes eight to ten years for your cash value to exceed the premiums you pay. If you carry on, however, the results get better—sometimes dramatically. This is a long term proposition. Do not buy it if you cannot keep it. From 1991 through the start of 2011, according to Blase Research (a life insurance data provider in Easton, PA), annualized cash value returns for representatives policies from major companies such as Northwestern Mutual and New York Life in private range from 2.62% to 4.44%. This amount is tax deferred and includes the part of your premiums that go to pay for death protection and company expenses. But it is also a good idea to see whether you can convert your term policy to permanent insurance without changing insurers and without a new physical exam, especially if you develop medical conditions that you did not have when you purchased the life insurance originally. Clearly earnings on life insurance policies will not keep up with stocks over a lifetime and certainly not with an extended bull market. This is why just about every financial advisor, including well-trained life insurance agents, emphasize that insurance is not meant to be your primary investment. Tom Newsad, a financial advisor and life insurance agent in Middletown, Ohio, advises everyone to have a comfortable emergency reserve savings or tax deferred investment. Remember that permanent or whole life insurance has a couple of strong suits, the first of which is safety. With the exception of AIG, life insurers survived the credit crisis and the recession in excellent financial condition. Second is that falling costs, competition, and longer life expectancies are driving the cost of all life insurance policies down, including those for people aged fifty and older.
Permanent life insurance also appeals to risk adverse people who do not have time to recover investment losses in the event of another financial crash. Another form of whole life or permanent life insurance protection is a type of whole life policy called limited pay. You may pay higher premiums for fewer years, but it is an option that has become popular among pre-retirees who want to time the end of their premium obligations with the retirement date. Cost could range perhaps twice as much per year versus regular premiums paid over your lifetime, but by putting more into the pot earlier cash value also compounds quicker.
Cash value life insurance can also be a good portfolio diversifier. That is because a whole life policy is unconnected to the securities market. You can think of it as cash or bond allocation in your overall investment nest that allows you to become more aggressive with stocks, commodities, or real estate in your IRA and 401(k) or taxable brokerage accounts. Cash value life insurance is also one alternative to home equity line of credit or other sources of borrowed money. That is because the money you usually borrow from your whole life insurance policy is not taxed (remember, whole life insurance policies are the only vehicle that you can borrow money out of and not have to pay taxes on). A policy loan is instant credit. You can borrow up to your total premiums paid with no questions asked, simply by sending a fax or sending the insurance company a check or wire transfer at the Newsad Insurance Services office. A simple phone call or e-mail starts this process for you. Besides speed, there are two huge advantages to CDs and loans, and that is that nobody runs a credit check or ties the interest rate to your credit score, and that you do not have to repay the money on any schedule. There is also no penalty if you want to make a withdrawal at or before age 59 ½ because it is not a taxable event like a withdrawal from an IRA or from a 401(k). Policy loans are not a totally free ride, however. They tend to acutely accumulate interest at 5% to 8% in your unpaid principal and accrued interest is deducted from the death benefit paid to your survivors, or from the cash value taken away if you discontinue the policy.

Ultimately, what’s most important here is that the money accumulating in your policy is your money. You also will not have to beg a banker to approve a loan after you have retired and have a lower income.
Buy coverage from the best so you are entering a long-term relationship. That is why at Newsad Insurance Services we strive on building relationships, and having long-term relationships with our clients is priority number one! Tom Newsad has been selling life insurance in Middletown since 1994 and currently serves clients in Middletown, Franklin, Trenton, Liberty Township, Hamilton, and South Dayton. For more information, contact Newsad Insurance Services today at www.newsadinsurance.com or 513-424-6871

Life Insurance and Retirement Planning

As more and more clients I speak with are getting closer to retirement age, one constant conversation I have with them is that most people in their fifties who are empty-nesters and are pre-retirees need to be reminded about the need for life insurance. Once these clients’ children are no longer dependents, and their mortgages are nearing their end, it is important for me to determine how large their nest eggs need to be to retire. If we can anticipate their retirement assets to double in the next ten years, what happens if one of these client’s spouses were to die prematurely? Life insurance is extremely important to complete the retirement goals for the survivor. Secondly, if this person is insurable and they have group supplemental life coverage, there is a very good chance that coverage can be purchased from Newsad Insurance Services less expensively than through his or her employer since this coverage is usually banded every five years (age 50, 55, 60, etc,) and sometimes drops or decreases in value.




It is important to review all of your life insurance needs with your financial planner annually after age 55. For more information, please contact Thomas G. Newsad, 3 year Million Dollar Round Table qualifying member, serving Middletown, Dayton, Franklin, Lebanon, Trenton, and Butler County

Agent's Time to Shine

The first principle about life insurance is that no matter how fancy the products become, at the end of the day its primary function is to provide your loved ones with peace of mind and financial security.

When meeting with clients, an agent must:

1. always try to deliver the claim in person (I always do this).
2. be empathetic, but don’t try to become part of the family.
3. emphasize in his or her initial contact with the beneficiary that the agent is there to help. I try to offer my  services for not only life insurance, but also for investments and questions about social security and funeral homes.
4. ask if he or she can be of assistance with the beneficiary’s attorney in distributing the client’s money wisely.

I was told by a mentor or mine several years ago that when it comes time to pay a death claim, this is the agent’s time to shine.



-taken from “Delivering Dollars to Widows”, article found in NAIFA’s Advisor Today, November 2010 issue

IRA Distributions

It is important for clients to remember that when taking out distributions from their IRAs, the income received will be applied to their total taxable income, often pushing them into a higher tax bracket. In a lot of cases a client may be in a lower tax bracket before taking their distribution. Taking the distribution money then pushes them into a higher tax bracket. It is always a smart idea to consult your tax advisor prior to making any decisions regarding IRA distributions. Another significant point to remember is that any distribution taken before age 70 ½ will have a 10% tax penalty from the IRS.

In some cases, a Required Minimum Distribution (RMD) can be paid out in fixed installments. RMDs are minimum amounts that a retirement plan account owner must withdraw annually starting with the year that he or she reaches 70 ½ years of age. This method of fixed installments makes it easier to spread out the taxes owed on a distribution. The IRS considers IRAs to be tax qualified savings accounts. Be sure to consider the tax impact before tapping into retirement accounts for short-term financial emergencies.

For more information on the IRS and assistance, go to www.irs.gov.

At Newsad Insurance Services we believe in helping our clients make these important decisions. Please visit www.newsadinsurance.com for more information.

-Tom Newsad
Agent, Newsad Insurance Services

"Dead Letter Offices"

As a big time user of the U.S. Postal Service I recently read an interesting article from Kiplinger’s Personal Finance Magazine (May 2011) and thought that I would pass along some of the information…


“Dead Letter Offices”

Over 2,300 post offices will close their doors in 2011 and 2012, and 16,000 additional post offices, roughly half the nation’s total, will be reviewed for closure. The U.S. Postal Service is facing a $20 billion net loss over the past four years and must undertake cost-cutting measures. Saturday delivery will also soon no longer exist.

Public libraries, facing tight budgets, are overhauling operations too. Some libraries are renting out meeting rooms or providing passport services to offset expenses. Others are seeking business sponsors to pick up the tab for some library services or to keep a building open an extra day. Libraries are also taking advantage of e-books, cutting deals that allow libraries to buy and lend them on the spot or to return multiple copies when demand decreases.


For more information, visit www.kiplingerbiz.com/ahead/postoffice.

Pricey Life Insurance

You do not need private mortgage insurance or credit insurance if you qualify for a regular life insurance policy. A regular life insurance policy gives your heirs the flexibility to use the money for their most important needs rather than being forced to use the cash to pay off a low-rate loan. Even if you have a traditional term life policy, you could save money by switching to a new policy. Term rates have plummeted over the past decade. If you are in good health, you could pay even less for a new policy even though you may be older.

Contact Newsad Insurance Services for more information at www.newsadinsurance.com

-Article from Kiplinger’s Personal Finance Magazine

Norman Levine's Success Principles

• Principle # 1:
o If you are doing what you love and you’re having fun, what other people think is irrelevant

• Principle # 2:
o Anytime you apply the discipline of long hours and seeing lots of people, you can’t help but succeed

• Principle # 3:
o A firm belief in the value of your product gives you power to sell aggressively

• Principle # 4:
o Great success sometimes comes from meager beginnings

• Principle # 5:
o Sometimes it pays to buck the system and follow your instincts

• Principle # 6:
o Leaving your past and starting over is sometimes the best road to success

• Principle # 7:
o A commitment, publicly made, has incredible motivational power

• Principle # 8:
o The day you fall in love with what you are doing is the last day you will ever have to work

• Principle # 9:
o Selling from the heart means helping others reach their goals, not yours. Learn to sell from the heart and you will be more successful than you could possibly imagine

Norman Levine built three separate multi-million dollar agencies from 1959-1997. At one point in 1975, he produced 3x the million dollar round table level in only 30 days. Norman Levine then continued to produce at this level throughout most of his career.

For more information, visit

http://www.leads4insurance.com/9-secrets-insurance-selling-legend/

Where's the Safety Net?

Ownership of individual life insurance hits a 50-year low.

Although most American families have less to fall back on financially than they did when the economic downturn began, ownership of individual life insurance has hit a 50-year low, according to a new LIMRA study.

The Trends in Life Insurance Ownership study, conducted every six years by LIMRA, found that only 44 percent of U.S. households have individual life insurance. The number of U.S. households that have no life insurance whatsoever is also growing. Today, 30 percent of households (35 million) have no life insurance coverage, compared to 22 percent of households in 2004. Among households with children under age 18, which arguably have the greatest need for life insurance, 11 million have no coverage.

“Clearly, more American families are living on the edge- surviving paycheck to paycheck- and, as our new study suggests, too many without the safety net that life insurance provides,” says Robert Kerzner, CLU, ChFC, president and CEO of LIMRA, LOMA and LL Global. “The numbers tell a grim story. Today there are 11 million fewer American households covered by life insurance compared with six years ago. A majority of families either have no life insurance or not enough, leaving them one accident or terminal illness away from a financial catastrophe for their loved ones.”

Other Priorities

More than 40 percent of Americans say a major reason they have not bought more life insurance is because they have other financial priorities right now, such as paying off debt or saving for retirement. However, the drop in life insurance ownership is not because families are not feeling vulnerable. Among households with children under 18, four in 10 say they would have immediate trouble meeting their everyday living expenses if the primary breadwinner were to die today. An another three in 10 would have trouble keeping up with expenses after several months

Half of the households surveyed feel they need more life insurance- the highest level ever. Moreover, 24 percent of households with children under 18 want to speak with a financial professional about their life insurance needs; and a quarter of all households plan to buy life insurance in the next year. According to the study, life insurance beat out all other sources of financial assets or income that Americans expect to use to help pay their bills and maintain their lifestyle in the event of the primary wage-earner’s death.

“With so many families continuing to struggle financially, there has never been a more critical time for people to own an adequate amount of life insurance,” says Marvin H. Feldman, CLU, ChFC, president and CEO of the LIFE Foundation. “This study shows that Americans place great value on the need for protection, and half of all families recognize that they need more life insurance than they have, and that’s good news. Now they need to take the next step and get the coverage they lack before it is too late.”

Not sure how to reach their goals

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. Almost eight in 10 households do not have a personal life insurance agent or broker to turn to and most of them say they never did.

Most individual life insurance policies are sold by insurance agents and many Americans want to keep buying this way. For instance, 60 percent of Baby Boomer households prefer to buy life insurance face-to-face. Younger generations say they also are interested in gathering information about life insurance online and at their place of work.

“As an industry, we need to reach out to consumers and educate them about the various ways they can purchase life insurance,” Kerzner says. “Whether they buy from an agent, get coverage through their employer, or make an online purchase, the important thing is that they get the coverage they need to protect their loved ones.”

For more information, visit http://www.limra.com/.
-Article written by Preeti Vasishtha and taken from the November 2010 NAIFA’s Advisor Today

Individual Life Insurance is a smart way to protect your investments

Christy Schulte interviewed Tom Newsad for the Insight section of the March 27th Middletown Journal:

Most people who have life insurance acquire it through an employer-sponsored plan instead of purchasing an independent policy. That can have uncertain consequences, according to Tom Newsad of Newsad Insurance, an independent life insurance agent based in Middletown, OH.

“When a person’s employment terminates, their life insurance may completely end, can decrease in value or can be converted to permanent insurance,” says Newsad. “It’s important to be aware of how an employer policy works so that an educated decision can be made on whether to purchase an independent life insurance policy.”

The sooner a person purchases an independent policy the better. “The optimum age to purchase life insurance is 29, before health starts to decline,” says Newsad.“ The closer a person is to retirement age the more expensive a policy will be.”

Newsad, who represents Grange Life Insurance, says there are three things to consider when purchasing a policy: future obligations like college and retirement, replacing a missing salary and mortgage debt and other special needs like funeral costs.

There are two basic types of life insurance: term and permanent. Term life insurance provides protection for a certain period of time, usually ranging from one to 30 years. Term is typically lower in cost and most policies can be renewed, even if health has changed. Premiums can change with each renewaland the right to renew may be declined at some age.

Permanent Life insurance provides lifelong protection. As long as you pay the premiums and no loans, withdrawals or surrenders are taken, the full face amount will be paid upon death. Permanent life insurance accumulates cash value and is priced to keep over a long period of time.

Newsad Insurance was founded in 1996 in Middletown, Ohio. Tom Newsad has won numerous industry awards including being a three-year member of the Million Dollar Round Table, which includes only the top one percent of the world’s most successful life insurance and financial services professionals.

He is also a member of the $50 Million Club, achieving special recognition for having more than $50 Million worth of life insurance with Grange Life Insurance Company. Newsad has been a Pacesetter Qualifier with Grange for the last nine years. Grange is an insurance provider based in Columbus, OH that offers auto, home, life and business protection.

Newsad Insurance is located at 3121 Central Avenue in Middletown and is accredited by the Better Business Bureau. For more information or to receive a quote call (513) 424-6871 or visit www.newsadinsurance.com.

- By Christy Schulte

Take Your Child to Work Day

Thursday April 28th is Take Your Child to Work Day. Occupations with the largest growth through 2018 include:

• Network systems analysts
• Registered nurses
• Accountants
• Insurance Agents
• Auditors

Top 10 Most Expensive Health Conditions

Life insurance rates are determined by many factors including age, gender, and lifestyle. Life insurance underwriters put applicants in risk classes based on the likelihood of death before policy maturity. The higher the risk, the higher the rate class, and the more expensive a policy will be.

These are the top 10 health conditions that are most likely to affect your life insurance rate class:

1.) Hypertension (High Blood Pressure)

• High blood pressure that is not well controlled is a concern to underwriters because it can lead to a lot of vascular complications
• However, the industry takes individuals who have well-controlled and well-managed high blood pressure into consideration and often underwrites them very favorably

2.) Type 2 Diabetes (Adult Onset)

• The potential complications that can result from diabetes affect risk class
• Youth does not work in favor of the Type 2 applicant. The younger a person is when they are diagnosed, the higher the risk for a life insurance company as the person gets older
• The important factor in getting affordable life insurance coverage with diabetes is good control and management

3.) Sleep Apnea or Narcolepsy

• Severe sleep apnea can be associated with high blood pressure and coronary artery disease
• If sleep apnea is well controlled and well managed, applicants can still get a good underwriter rating

4.) Heart Disease

• Heart disease encompasses a wide range of diseases and conditions from atherosclerosis to a prolapsed mitral valve
• Underwriters consider family history in heart disease assessments…they look at immediate family members- father, mother, brother, sister- who may have developed heart disease or had a stroke

5.) Asthma

• With asthma, underwriters are concerned about the severity of the condition and how well it is managed
• An individual with well-controlled asthma should be able to be favorably underwritten

6.) Cancer

• The word “cancer” will flag any life insurance underwriter but its ultimate effect on an applicant's rate class can vary from negligible to substantial
• Just as each cancer is individual, every insurance company will underwrite it differently

7.) Obesity

• Centers for Disease Control and Prevention statistics indicate that more than 1/3 of adult Americans are overweight and another 1/3 are clinically obese
• Insurance companies calculate an applicant’s BMI when determining their risk class
• Most carriers have build tables to determine which weights can qualify for each rating

8.) Organ Transplants

• Insurance companies treat organ transplants on a case-by-case basis
• Kidney transplants are the most common and can be insurable but liver and heart transplants are rarely insurable

9.) Depression

• The rating for individuals with depression depends on the degree, the severity, and how well it is managed

10.) High Cholesterol

• Life Insurance companies are concerned with high cholesterol because it is a risk factor for the development of a lot of vascular conditions, including coronary artery disease, stroke and other atherosclerotic kinds of disease
• Underwriters tend to treat high cholesterol like they treat high blood pressure…favorable ratings can exist if it is controlled and well-managed

-From Bankrate.com “Top 10 Health Hazards for Life Insurers”

Avoiding Gaps in Life Insurance Coverage

In a recent meeting with a client it was discussed that most people are not aware of what happens to their life insurance benefits when they retire. Most group term policies, which are generally low cost term life insurance protection, simply end when employment ends. In some cases you may “convert” your existing insurance into a permanent style policy. If this is not an option, the coverage ends leaving a gap in life insurance protection.

You should always consult with a life insurance agent for help reviewing the insurance jargon in your group policy. In some group policy cases term benefits decrease in face amount, declining vastly after age 70. Some larger companies have even eliminated coverage for spouses’ life insurance policies. For these reasons it is very important to review your life insurance and retirement plan with a financial advisor, especially when you decide to retire or separate from employment. Purchasing an individual life insurance policy can give you peace of mind and fill in gaps left by your group insurance policy.

At Newsad Insurance Services I believe in knowledge, trust, and service for each of my clients to ensure that each client is prepared for the present and the future.

Newsad Insurance Services serves Middletown, Monroe, Franklin, Trenton, Oxford, Dayton, and surrounding areas.

Annuities

In a recent Gallup Poll, people who had been asked about annuities believed:

• Annuities have a competitive rate of return
• Annuities provide a long term savings plan
• Annuities are important sources of retirement planning
• Annuities can ensure that a surviving spouse has a continuing income
• Annuities provide payout flexibility
• Annuities offer tax deferral
• Multiple beneficiaries can be named on annuities

Annuities can only be purchased through life insurance companies. Prior to purchasing an annuity with a life insurance company it is important to check the company’s ratings.

Annuities purchased through Newsad Insurance Services will give you “peace of mind” as you know that you are investing in a safe, guaranteed plan. At Newsad Insurance Services we believe in knowledge, trust, and service. Let us help you prepare for the future!

SAVE MONEY

Consider buying Universal Life insurance for a forced savings. Buying a permanent style life insurance policy such as a Universal Life policy will offer you a current 4.5% interest on your savings and provide you with cash value growth. Having premiums drafted from your checking or savings account offer easy ways to force yourself to save money.

For more information, check out www.newsadinsurance.com

"Insure Your Love"

Many people work to create a legacy of love by protecting and providing for our families, businesses, or favorite charities. People usually choose to buy life insurance because they “love” someone or want to protect someone that they love financially. Other products that can be used in this spectrum of financial services are annuities, which are also sold by life insurance companies.

An annuity is a flexible retirement planning tool that allows your retirement savings to grow on an income tax-deferred basis option that best meets your needs for income when you retire. Many people choose to purchase annuities because an annuity allows savings to grow without any current tax, since earnings on an annuity are not taxed until payout begins. Many others say they like annuities because an annuity provides a steady stream of income they cannot outlive.

At Newsad Insurance Services we believe in custom tailoring life insurance products around the needs of our clients. Tom Newsad of Newsad Insurance believes in “customer relationships built on knowledge, trust, service, and love.” Not until you sit down with your clients and hear their concerns can you help them fill their needs. “Your clients look at you and see what they want to see…their hope!”

Tom Newsad has been selling life insurance for 19 years in Dayton, Middletown, Franklin, Hamilton, Oxford, and the surrounding areas.

Xpress Issue Term

Grange Life Insurance Company has introduced an EXAM FREE term life insurance option called Xpress Issue Term. Clients may purchase life insurance policies for:

• 10 Year Term 18-55 years old $50,000-$125,000

• 20 Year Term 18-50 years old $50,000-$125,000

• 30 Year Term 18-45 years old $50,000-$125,000

Applicants will be led through a series of online questions regarding general health, tobacco use, traffic violations, and foreign travel. After answering the questions, applicants will be able to receive INSTANT approval within minutes. Applicants may also have their first premium drafted from their checking or savings accounts to ensure immediate life insurance coverage. Applying for Xpress Issue Term Life Insurance is a quick and simple way to purchase affordable term life insurance policies.

For more information, contact Tom Newsad at Newsad Insurance Services, serving Middletown, Hamilton, Fairfield, Oxford, Franklin, Dayton, and surrounding areas.

Tom Newsad is a Grange Life Insurance Company Pacesetter, a 3 year Million Dollar Round Table member, and a member of Grange Life Insurance Company’s 50 Million Face Amount Club (Gross life insurance sales).

Required Minimum Distributions

Remember when rolling over investment money, the accounts must be of “like kind” to move. For example, IRA money can come from a 401K, 403B holdings, or self-directed IRA accounts and you must withdraw at least a minimum amount annually after turning age 70 ½. This amount that you must withdraw is called the Required Minimum Distribution (RMD) which is determined by the Internal Revenue Service on an annual basis. Most companies require you to take the money in the third quarter of each year. The funds received from a RMD can be reinvested into non-qualified savings accounts (which you pay taxes on) or non-qualified annuities (which you do not pay taxes on until you withdraw the funds).

Before taking out your money for a RMD you should consult with your financial advisor and your CPA or tax advisor. At Newsad Insurance Services we guide our clients through this process making it simple and easy to understand. Tom Newsad has been offering financial services in Middletown, Trenton, Hamilton, Franklin, Carlisle, Dayton, and Monroe for 18 years. For more information, visit www.newsadinsurance.com.

Retirement

January 1, 2011 marked the day the first Baby Boomer turned 65. The reality of working longer has set in for many Boomers as life expectancy continues to increase. Determining the best retirement age has proven to be both a priority and a challenge around the world. For example, the French Parliament rose the retirement age from 60 to 62 in an effort to enhance their nation’s economy despite weeks of rioting by French citizens and reforms in Spain. Under the newly approved reform bill, the retirement age in France will be raised from 60 to 62 by 2018, and the age of full pension eligibility from 65 years to 67. Britain plans to increase the pension age to 65 for both men and women in 2020.


However, turning 65 does not necessarily mean retirement for you. My clients can hear and read about retirement changes through the media and should be able to rely on their trusted financial advisors to provide guidance when making important retirement decisions.

Three areas Boomers should evaluate are:

• The “lifestyle” they want to maintain during retirement
• The “life income” they will have available to support their lifestyle
• The “life boats” they will need to sustain their lifestyle, should the unforeseen occur

At Newsad Insurance Services we strive to build relationships built on knowledge, trust, and service. Tom Newsad sells life insurance and fixed annuities in Middletown, Trenton, Hamilton, South Dayton, Monroe, Franklin, Carlisle, and surrounding areas.