Saturday, December 27, 2008

How To Buy Whole Life Insurance

Discover The Benefits of Cash Value Dividend Paying Whole Life Insurance

Once you learn how to buy whole life insurance, and truly understand how it works, you can use the cash value to finance everything you buy. This requires discipline though and should only be used with the aid of an experienced agent.

All life insurance policies pay a claim when you die, but whole life can provide many economic benefits while you're alive. If the policy is set-up correctly when you initially make the purchase, you can use it much like any other financial account as a place for your money to reside. The important step is to buy cash value, dividend paying whole-life insurance from a mutual company.

There are but a few mutual companies left today. Most of the life insurance companies have demutualized and become stock based companies. This means their obligation is to their stockholders. Mutual companies have an obligation to their policyholders. To name a few, MassMutual, Guardian, Northwestern Mutual and New York Life. There are more, but those are the major players that have been around for a while.

Before we get started on how to buy whole life insurance, let's take a look at how the policy works. With a Whole Life Insurance Policy the premiums remain fixed for the life of the policy. A portion of the premium is used to purchase and accumulate a guaranteed cash value thus adding a savings element. You can purchase paid up additional insurance as well to increase this cash value. Dividends, which are not guaranteed, may also increase policy cash value. Provided that premiums are paid as specified in the policy, the policy remains in force during the insured's entire lifetime.

The part of your premium that goes into a cash reserve and accumulates as cash value is tax-deferred and can be tax-free if accessed correctly. Generally you can access this cash value at any time, for any reason (Imagine doing that at your bank without a lengthy application and credit report). The reasons could be many including financing a car, a hardship, college, marriage, retirement or critical illness.

While providing many benefits of its own, whole life insurance also makes your other assets stronger. By providing protection, a hedge against inflation and significant tax benefits. With permanent life insurance in place at retirement the owner of the policy can spend down all of his assets if needed without fear of running out of money.

Some of the many benefits of owning whole life insurance:

  • Tax Deferred

  • Tax Free *

  • Estate Tax Free *

  • Unlimited Contributions *

  • Competitive Return On Investment

  • Guarantee

  • Creditor Protection *

  • Unlimited Investment Options

  • Collateral

  • Liquid, Use and Control

  • Disability Waiver *

*Benefits may vary based on your situation. All benefits should be examined by an experienced agent and may not work in all cases.

Before you purchase whole life insurance, follow these steps:

  1. Interview and find an agent that represents a mutual life insurance company. Ask the agents how much life insurance they own, and how much is whole life (Pay close attention to see if they mention "human life value" or "economic value".
  2. Once you find an agent and decide on a mutual company, decide how much life insurance you want. You will find this is different than what you may have been told to buy, or how much you need.

  3. You may want to own some term insurance to help you achieve your human life value. If the term is from a mutual company, it is usually convertible to whole life at a later time.
  4. After you decide how much you want you can then determine how to fund the policy. Your agent should help you here, that's what he gets paid to do. Factors will include how long you want to fund the policy and how you foresee yourself using the policy in the future.

  5. A few important riders you should look for include the waiver of premium, and paid-up-additions rider. The waiver will protect you in the event of your disability and the PUA will allow you to overfund the policy as you want to help grow your cash value.

Follow these steps and buy whole life insurance while you are young and healthy. If you have health issues, then you can buy it on your spouse, children or loved ones and you can retain ownership. Whole life insurance can provide many benefits while you are alive and allow you to pass on a legacy of financial independence to your heirs.

Enjoy Life Today, Leave a Legacy for Tomorrow sm,
Barry Page

Barry Page is an experienced life insurance agent. He can be reached at:

Wednesday, November 19, 2008

Post Election Tax Reform

Campaign 2008 is finally over. Democrats are stunned that they haven't blown it again, and Republicans feel bamboozled, but seem ready to move forward. Barack Obama will be the 44th President of the United States. He'll take office in January with strong Democratic majorities in both the House and Senate and the most sweeping tax proposals since the 1986 tax reform.

Obama himself promised to cut taxes for families making less than $250,000, uh $200,000, via Biden that's $150,000 per year. But who knows how long that promise will last?

Now it's time for Obama's campaign promises to meet economic reality. And one of those realities is that there just aren't as many Wall Street millionaires to tax as there were when Obama rolled out his plan!

Understandably, the media has generally focused on the true bailout provisions of the Emergency Economic Stabilization Act of 2008. But this landmark legislation also contains a bundle of tax law changes that will affect you as an individual taxpayer.

You should take the time now to protect your profits from new tax legislation. The decisions you make now will affect your spendable income and your family's future.

Thursday, September 4, 2008

How To Save with Your Life Insurance

Life Insurance Planning
It May Be Time to Reevaluate Your Policy

You can use life insurance to protect your family and save money in any economy. As the political landscape heats up headlines will abound. Unfortunately, many of these headlines will be of negative news. One recent headline from the Washington Post read “Inflation Climbs to 17-Year High.” So, you are paying more now for what it takes you to live on. Things like food, clothing and gas.

The good news is there is one thing that works as a hedge against inflation, Life Insurance. As a matter of fact, because of mortality rates increasing, the cost of life insurance has actually gone down in recent years. And, as you look for more effective ways to have your dollar last longer and work harder, permanent life insurance provides protection, savings and growth.

So, how can you save money with your life insurance? Well, first you need to evaluate your situation with a qualified life insurance agent to make sure your family's needs are covered. Second, if you currently have enough coverage, you may be able to get a better rate now than when you first applied. Third, there are more and better choices today and your current plan may be out of date.

Let's take a look at some specifics. According to LIMRA, a leading authority on life insurance research, over 68 million Americans have no life insurance and many that do, don't have enough. Some may look at this and say they don't have it because they can't afford it. Nothing could be further from the truth. Life insurance is more affordable than ever, and in many cases it's less than any regular bill every month. And, if you don't have it, your family will ultimately pay more. If you are having problems making ends meet, a qualified agent can help you find money that you are probably losing to fees, taxes and other unnecessary expenses.

Other important points of interest include financing, education, retirement and medical costs. When structured properly, life insurance can provide all of these added benefits in a single product. Proper coordination and integration is required here, so again you will want to seek competent advice.

The bottom line, life insurance provides multiple uses of your money. No other product can guarantee that what you want to happen will happen, regardless of what else happens with the economy, the weather and your health.

So, why not take the opportunity to speak with your life insurance agent today. Your family and charity are depending on you.

Enjoy life today and leave a legacy for tomorrow,
Barry Page

Barry Page is a licensed, independent life insurance agent.
Learn more about life insurance here:

Sunday, August 10, 2008


Learn How To Create Your Own Banking System Using the Infinite Banking Concept™

· You could recapture all the money you paid for a car?
· You could recapture all the interest you paid on financing it?
· You could make the same profits as the banking institution that financed it?


Infinite Banking teaches the process of using your current flow of finances versus consumption of money, for integrating protection and wealth accumulation enabling one to enhance their assets without creating additional liabilities. If you had your own grocery store would you buy groceries from a competitor's store? If you owned your own bank, would you borrow money from a competitor's bank? Most people agree that if you own a business, it makes sense to fully utilize that business and all its assets for not only your business but also for your personal needs. Yet that is not generally what happens especially when we make significant purchases such as cars, equipment, and homes.

· Use available savings and cash flow to build your own “bank”
· Finance things you buy through your own “bank” with loans from your “bank” to you
· Repay your “bank” exactly the same way as you would repay the financial institution you would use otherwise
· Build a system of banks that increases your personal wealth

Consider this, "we finance evetything that we buy." We either pay interest or we give up earning interest.

Here's the problem, the average American pays 34.5 cents of every disposable dollar to interest! And, we are not saving enough money. Currently the American savings rate is near it's lowest in history, comparable to what it was during the Great Depression. Yet, most people are more concerned about earning interest than paying interest. Even if we were saving 10% of our income (the U.S. average is less than 3%), that would mean that our ratio of paying interest to saving is 3 to 1. Rather than fighting a head wind, wouldn't it make more sense to create our own perpetual tailwind?

You can using the Infinite Banking Concept™. Though this concept has been around as long as the process of arbitrage, Nelson Nash was the first to explain in it in an easy to read book,
Becoming Your Own Banker™. The book details how anyone can create their own banking system using ordinary, dividend paying, whole-life insurance.

While the book has it's skeptics, and some naysayers have even called it a scam, the process is undeniable. You will need a coach, preferrably a qualified life insurance agent that practices the Infinite Banking Concept™ themselves. Don't expect to buy life insurance direct from the company, or ask the home office how the process works, they won't know.

So, if you are tired of paying your hard earned money to the banks and financial institutions, and you want to recapture this interest and deposit it into your own bank, then read the book. You'll learn the basics, see lots of examples of how you can use the concept, and understand what it means to be an "honest banker."

You can purchase the book Becoming Your Own Banker™ here:

Stop Paying Interest and Start Earning Interest Now! The possibilities are infinite...

Until next time,
Barry Page

Barry Page is a member of the Infinite Banking Concept Think Tank and a licensed insurance agent.

Wednesday, June 25, 2008

Managing Debt for Financial Freedom

Financial Freedom – It’s All About Managing the Here-and-Now
By Barry Page

To help achieve financial freedom we need to manage how we spend our money. This may require us to make small shifts in our spending habits today in order to reap big rewards tomorrow.

One way to help secure bigger rewards over time is to control and manage the here-and-now. For those who find it difficult to pass up the corner gourmet coffee shop, read on.

I’m not professing to create a budget; I think budgets are limiting. Better yet, I think you should create a spending plan. Think of your money as a means to an end. What’s important to you and how can you get there. If you want the money to be there in the future, then you need to manage it today.

Think of the following items you may spend money on every day and how, by making “exchanges” in your spending, you may be able to save a little more for the future. It’s all about maximizing the “equation of exchange”.

1. Credit Cards: There is a lot that goes into determining the interest rate you pay on a credit card. The credit card rate you pay is determined by adding a “spread” to a “base rate”. The spread that is used to calculate your rate is usually determined by your credit history. A less than great credit history may result in a spread 2-3 percentage points higher than someone with a better credit history. So it’s important to maintain a good credit rating. Consider calling your credit card company and asking for a reduced rate; if need be, transfer your current balances to a lower rate card.

2. Phones: I’m not going to recommend you get rid of your cell phone, house phone or cable line. I do suggest you review your phone plans to ensure you have the best plan for your needs. For example, for cell phone users who use the same vendor, you may be able to call each other without being charged airtime or usage. Additionally, review your monthly phone bills to determine how many minutes you actually use; you may be better off reducing the number of minutes.

3. Mortgages and Auto Loans: Experts generally recommend if you can reduce your interest rate by 1 or 2 points on your auto or home loan, and recoup any related closing costs, you may be better off to refinance the loan at the lower rate. Another consideration is to make biweekly payments instead of monthly payments on your mortgage. The lender will receive the money faster and in the future, you should have the loan behind you.

4. Gourmet Coffee: Are you one of those folks who stand in line to order gourmet coffee. At a whopping cost of about $3.00 per cup, instead of buying 4 a day, reduce it to 2. This little spending reduction will save you over $2,000 in one year!

5. Charging vs. Paying Cash: Do you charge just about everything you buy? If you find yourself reaching for the plastic, stop and consider what that convenience is costing you. When making small purchases, pay cash. Paying cash helps with managing your expenditures and over time, becomes a way of life.

6. Student Loans: Are you still paying off student loans? Consider consolidating them into one manageable bill. While this will probably extend the payment period, you may lock in a lower rate. For example, if you’ve already graduated and consolidate your loans by July 1, 2006, you can lock in a 5.375% rate for the life of the loan. Additionally, graduates who consolidate during their grace period (the six months before you have to start making monthly payments) can lock in a rate as low as 4.75%.

Now that you’ve hopefully freed up some money, don’t go running to the closest gourmet coffee shop and purchase a latte with sprinkles. Save the money and take one step closer to financial freedom.

Barry Page is a financial consultant with Legacy Insurance Agency, PLLC
a subsidiary of the
Shield Financial Group
2600 Government Street
Ocean Springs, MS 39564
(228) 875-5545

Sunday, March 16, 2008

It's Your Money

If you keep up with the news you have no doubt heard that we are in a recession. This by itself is not our problem; The problem lies in our inability to keep our money out of the hands of our government. Our government, despite their good intentions, has led us into our current situation through out-of-control spending.

Regardless of which side of the isle you come from, or even if you consider yourself an independent, hopefully you can understand that YOU can take better care of yourself than Uncle Sam. If you can not, then you are destined to a life of financial slavery. That may sound a little harsh, but it's tough love.

We have to get our arms around the fact that our current tax system and the IRS confiscate our money regularly and by doing so, deny us the right to think and act on our own. Don't hear me wrong here, because I believe in paying taxes to support our government, so it can function and protect us from foreign interests. But, they are doing just the opposite.

It's easy to follow the crowd and do what our government recommends. However, by doing so you are increasing your risks and giving up your rights.

If you take a look at history, our country was actually founded because of a dispute of having to pay taxes and the Boston Tea Party. After which we actually had a 100+ year period of prosperity. Then came 1913 and the Federal Income Tax.

Our beloved Abe Lincoln and Franklin D. Roosevelt were the culprits that contributed the most to this ever increasing problem of the IRS. As taxes have increased over time we have lost control. Read for yourself on the IRS website:,,id=177655,00.html

And here's a chart on the history of income taxes:

Okay, so you say what does all of that have to do with me and MY Money? Let's take a look at the average American family, Mom and Dad with 3 kids. Dad earns $72,000 a year after 4 years of college and considerable work experience. He has the typical 401k and saves towards his employer sponsored retirement plan. If this isn't you, just stay with me, you'll get the picture.

Mom drives a 5 year old minivan that's paid for, and carries the kids all around to numerous games, parties and events. Dad drives a newer pickup and has a $500/mo truck payment. They live in a normal neighborhood and have 12 years left on a 15 year mortgage with a 6% rate.

Do you think they sound rich? Well according to IRS tax rate schedules that puts them in a 28% income tax bracket. See for yourself, here's the link:,,id=164272,00.html

Now you may be saying, "Yeah but I made that and I didn't pay taxes." Some people actually believe that because they get a refund check, or because they don't have to pay money in at the first of the year, that they didn't have to pay taxes. What about that withholding that came out of each and every check all year. Uncle Sam loves payroll deduction. And, let's not forget Social Security, Medicare and your 401k. "What? I thought that my 401k actually saved taxes?"

Let's look at each one of these "deductions" one at a time.

1. Fed Income Tax - This comes right out of your check before you have a chance to spend it. You do have an option here, but most don't exercise their rights to hold on to their money until the end of the year. Uncle Sam feels safer knowing you pay him first, and in many cases most individuals do as well. In this example it would be about $250 every 2 weeks.
2. State Income Tax - Don't forget your friendly state government, in this example we'll assume there share would be about $130.
3. Social Security Tax (OASDI) - Again, before you have a chance to count your money, it's gone. We'll talk about the failure of Social Security later, but in this example about $180
4. Medicare Tax - You can count on not seeing this either, but hey maybe it will be around when you really need it at retirement. In this example, it's about $40.
5. 401k - Conveniently, we'll let our All American Dad contribute 5% or $150 to this "plan"so he can fund his pre-tax investment. You can pay him now or you can pay him later.

Maybe this family has some health benefits and they'll contribute another $250 to these coverages.

After all is said and done this family brings home about $2,250 from the $3,000 he earned.

As if you don't already know this, here are 2 different examples to prove the above calculations.

Your Friendly Social Security Administration:

If you would like to calculate your payroll deductions, check out this cool site with lots of calculators:

To keep his mortgage company happy, they are also letting them hold in escrow the property taxes and insurance as well, so in reality they'll never see this money either.
After this family pays their mortgage, $2,000 PITI, car payment, credit card debt, and normal living expenses, they feel lucky if they have $50 left over to take the family out to eat.

Don't worry about the capital gain taxes, sales taxes and other miscellaneous taxes, we all pay them, right?

They feel fortunate because they are "getting by" and they feel "comfortable", but inside they strive for more. Our media feeds them advertisements of new cars, plasma televisions, wireless phones and movie star lifestyles, and, they eat it up. We can't help but want those things because "everybody" has them and we have to keep up with the Jones's. Sound familiar?

Okay, so back to the point about who's in control of your money. And, how can you keep more of your money? It's pretty simple really, take control.

Watch every penny. I'm serious, if you want control of your money, you need to document every expenditure. When you do, you will take notice. Once this is accomplished you can move forward, because you have to recognize that there is a problem. If you don't recognize the problem, you will not have the discipline to make a change.

Here's 3 steps to Take Control of Your Money:

1. Let's take a look at the paycheck first. Most of your payroll deductions don't have to be deductions at all. By changing your exemptions you can control who holds onto your pay. By doing so, you will have the use of this money. DO NOT change this unless you have the discipline to set this money aside in an interest bearing account with the sole intent of using it at the end of the year to pay your taxes.

The next deduction on your paycheck is your beloved 401k. Now I know Uncle Sam and all of the so called financial gurus tell you to max out this contribution, but you need to understand what is really happening. Your 401k only defers taxes, it does not save you taxes. While the argument is that you will be in a lower tax bracket at retirement, this is a myth. The reality is that you could be in a higher tax bracket at retirement. That's a whole other topic which we will examine another time.

2. In this example the family is paying about $500 per month for medical coverage because the employer is pitching in some of the premium. While that may sound good, it could actually be better. But, because we are so convinced that our employer needs to fund this, and that we need co-payments and low-deductibles, we let even more money slip out the door. Every situation is different and in many circumstances this example may very well be the best option.

If you want control, you should keep 6 months of income liquid in an emergency fund. Now this may seem impossible to some, but you have to start somewhere. If you do, you can raise all of your insurance deductibles and therefore control your money until you actually need it. Doing so will save you hundreds, if not thousands of dollars every year.

By the way, if you think socialized medicine will work, take a look at Social Security and Medicare. Here's the scenario. Social Security was created in 1935 by FDR. It was never intended to support people into their 70's, 80's and 90's. The debt for SS is $10 TRILLION. Medicare was created in 1965 by Lyndon B. Johnson. The debt for Medicare is over $60 TRILLION. Some quick math will tell you that's $70 TRILLION. And, don't worry about what the retiring baby-boomers will do to that.

3. The next way that many lose control of their money is with a 15 year mortgage. We've all been told that we save interest by paying off our mortgage sooner. While it is true that you can save interest, in reality this may cost the average family hundreds of thousands of dollars over their lifetimes. Again, don't hear me wrong. Each situation is different and if your goal is to pay your home off early, you can still do that in 15 years and have MORE CONTROL of your money along the way.

To grasp how a 15 year mortgage gives away control of your money, you'll have to understand some basics:

  • Your home will appreciate or depreciate regardless of the mortgage.
  • Because of the interest tax deduction, your net payment may actually be reduced.
  • Any payment going towards principle may actually increase your risk and decrease the mortgage lenders risk.

For more follow this link for a mortgage comparison using the LEAP financial calculator:

To summarize, with FINANCIAL EDUCATION and DISCIPLINE, you can take CONTROL of YOUR MONEY. When you are in control of your money, you can make informed decisions versus having someone else make decisions for you.

Until next time,

Legacy Insurance Agency

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