When it comes to savings, insurance policies and loans, determining the options available to you is quite necessary. There are different selections you can choose from which may or may not apply to a particular situation you are dealing with at present and in the future. So what are the basic things that you need to know?
Life Insurance, or is it Assurance?
If there is one subject guaranteed to sow the seeds of uncertainty and tangle the investor in the weeds of confusion, it is life insurance. Or is that “assurance”? These two are the same and the names are often designed to confuse. Traditionally, a company insures a thing because you might never collect, while life assurance is on a person because one is assured to die. The variety of products available today originated from pure life insurance policies. It started with the term assurance which is a policy arranged for a fixed period to pay out a fixed sum. This entails that if you die during that time, it pays. If you don’t it doesn’t.
Meanwhile, whole life policies are generally more expensive to buy but not only provide insurance for your family in case of death, but a major part of the premium is being invested on your behalf. Typically this kind of policy will guarantee an annual rate of return to the individual over the life of the policy. Through this type of scheme you are building up money and during your life you can use this policy as collateral against a mortgage, for example. Continue reading ‘Loans and Insurance Policies – Knowing Your Options’ »