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.