Category Archives: Financial

Life Insurance For Women

In the past, mostly men have taken life insurance policies. This scenario is changing slowly but steadily for two reasons- 1) more and more women are making economic contributions and many times at par with their male counterparts; 2) the monetary value accorded to the innumerable household functions performed by a homemaker.
Working women need life insurance for the same reasons as men- to provide for the dependants in case of untimely death and to provide for themselves in time of retirement. Life insurance policies for working women will be considered on the same parameters as for earning men; as also women who derive an income from sources like interest from deposits and dividends from investments etc. The aggregate of all sources should be taken into account for calculating the amount of risk cover. Life insurance becomes even more important for single mothers to protect the children and provide for their education and other needs.
Life insurance for women who are homemakers is reasoned to be essential too, though they are not making direct financial contribution to a household because it is perhaps only in the absence of the lady of the house that one realises the load of work handled by her. A life insurance cover for a house wife is computed by making a total estimate of expenses that will be incurred in hiring services to take care of household functions like hiring a cook, nanny for kids, tutor for kids, caretaker for chores like buying groceries and efficient running of the house. Life insurance for a homemaker can also help in covering medical expenses in case of critical illness.
A life insurance policy for a woman can be customised and made more effective by adding riders to cover areas that are particular to women. For e.g. it can cover breast cancer, complications in pregnancy, congenital disability in a new born.
There are some limitations in buying an insurance cover for a housewife- usually insurance companies do not offer a pure insurance product like term insurance to housewives, however all other plans like endowment plans, money-back and ULIP policies are available. Another restriction is on the upper limit of risk cover a housewife can purchase. The insurance cover is capped at different limits by different insurance companies and in no case can exceed that of the husband. Also the amount of cover will depend on the income of the husband/ earning family member.
Having a life insurance policy for a working woman is as important as for a man, because a sudden loss of her income can have equally damaging repercussions. But even a housewife should consider risk cover because from a practical point of view the services rendered by her, though priceless, have monetary value too. One way to ensure that the family is capable of meeting the extra financial demands upon her death is to have life insurance. Similar to an insurance policy for a male, it is also prudent to buy a woman’s policy as early as possible because it will cost much less when the lady is younger and healthier. So even if a female is working, unmarried and has no liabilities as yet, money invested in a life insurance policy may prove to be one of the best decisions later on in life.

Tips For Financial Product Comparison

When you are at the supermarket, you are bound to compare different products on the shelves so that you can pick one that is of high quality and cost effective. The same principle applies to financial product comparison. There are so many products available for you to use to manage your finances. It is essential that you take your time to choose the ones that are useful and productive to you. A product that may be useful to your friend may not really be the best for you. Therefore, you need to do financial product comparison while having your business or personal needs in mind.

It is important that you choose the best financial products that will help you to achieve long term goals. Comparing these products offers you a wide variety of options. This means that you are not just limited to one financial product. For example, if you want a pension option, you can compare different pensions so that you can get one that will serve you well after you retire. When carrying out financial product comparison, you make a decision depending on the benefits of each option against the costs. If the benefits are more than the costs, then you are sure it is a worthwhile product.

Another reason why you should compare financial products is because you save money and time. If you pick the right financial product, you can use it for a long while and you will not spend any time trying to switch to another product. You also save a lot of money in the long run since the profits you get when using the right product will mean that you do not lose any money on your investment. Getting professionals to help you as you shop financial products ensures that you use the least time possible in getting the best product for you.

In order to benefit from financial product comparison, you need to take your time when searching for the right product. You need to ensure that as you go through each product, there are details included in the description. It is also advisable that you learn how to read in between the lines as you shop. This ensures that you are aware of any hidden products since most providers may try to blind your eye on some areas. Do not just focus on the current value when you are shop financial products. Take your time and consider the future as well and if the products will be beneficial in the long run.

A useful tip for when you want to compare financial products is to get the input of experts. Since there are so many products, if you are not a financial expert, you can easily get confused. Therefore, you need to consult with someone who has a lot of experience dealing with financial products and can offer you advice on the best option for you. This will help you compare financial products that you are interested in, whether they are insurance or pension schemes. This is a sure way of getting the best product for your company

Familiar With Financial Planning

Usually, Financial Planning term is we hear bandied about in the media all the time; however, if you ask the people “What is financial planning?” then and you are about to get many different answers. It means diverse things to different people, although the most vital question is what it is meant for?

In normal term financial planning has been sprouting through the years. It work on base of save today and spend tomorrow. As per the new inclusive approach in financial planning it states to let the contemporary investor enjoy as well as save at the same time. Today is cohort is more open to perilous investments while they are younger because they know they still have the time to recuperate.

Moreover, the conservative part of investors mainly fits in to the older investors. A good financial planning consultant must have good customers of the two separate investors to be able to be a plausible finance adviser to you.

An ample financial planning comprises many factors of your financial life as following:

– Insurance and Risk Management
– General Financial and Retirement Planning
– Employee Benefits & Retirement Plans
– Other related financial service that your financial portfolio might demand
– Estate Planning and Management
– Investment Planning
– Accounting & Tax Planning

Today, there are many firms which involved in offering life insurance, home insurance, car insurance, homeowners insurance, college savings plans, mortgage life insurance, financial advice, financial planning, retirement planning, financial retirement planning, life insurance policies, etc. so one can also go with these kind of firms for their financial planning help.

The protection as well as improvement of your investments is the main anxiety of a financial planning phase. If you are dealing with the any financial planning consultant then he/she has to review your financial information, where it is at the moment as well as where you hope it will be in the future. Moreover, you can have the advice to make smart decisions concerning your money.

Today, there are many firms which involved in offering life insurance, home insurance, car insurance, homeowners insurance, college savings plans, mortgage life insurance, financial advice, financial planning, retirement planning, financial retirement planning, life insurance policies, etc. so one can also go with these kind of firms for their financial planning help.

The protection as well as improvement of your investments is the main anxiety of a financial planning phase. If you are dealing with the any financial planning consultant then he/she has to review your financial information, where it is at the moment as well as where you hope it will be in the future. Moreover, you can have the advice to make smart decisions concerning your money.

Today, there are many firms which involved in offering life insurance, home insurance, car insurance, homeowners insurance, college savings plans, mortgage life insurance, financial advice, financial planning, retirement planning, financial retirement planning, life insurance policies, etc. so one can also go with these kind of firms for their financial planning help.

The protection as well as improvement of your investments is the main anxiety of a financial planning phase. If you are dealing with the any financial planning consultant then he/she has to review your financial information, where it is at the moment as well as where you hope it will be in the future. Moreover, you can have the advice to make smart decisions concerning your money.

Today, there are many firms which involved in offering life insurance, home insurance, car insurance, homeowners insurance, college savings plans, mortgage life insurance, financial advice, financial planning, retirement planning, financial retirement planning, life insurance policies, etc. so one can also go with these kind of firms for their financial planning help.

The protection as well as improvement of your investments is the main anxiety of a financial planning phase. If you are dealing with the any financial planning consultant then he/she has to review your financial information, where it is at the moment as well as where you hope it will be in the future. Moreover, you can have the advice to make smart decisions concerning your money.

Common Myths About Whole Life Insurance

Life insurance is necessary. However, most individuals do not carry enough of it. The idea behind life insurance is that we all die. If your spouse dies prematurely, a life insurance policy will make sure that there is enough income to make your family whole for the financial loss you’ve suffered. Pretty much every adviser agrees having life insurance is a good thing.

This is where the agreement between financial professionals ends abruptly, because the next question that arises is: OK, so what kind of life insurance should people buy? The debate between which is better – term or cash value/permanent life insurance – is seemingly a “never ending battle”. For many various reasons, many investment houses, stock brokers, mutual fund managers (and the agents who sell their funds), as well as many popular financial “gurus” like Suze Orman, Ric Edleman, and Dave Ramsey presumably (according to their many published books and comments on national radio and television) hate whole life insurance.

Some financial advisors love cash value insurance, others hate it. Who’s right? Who’s wrong?

It’s surprising that the financial industry is supposed to be the educator. I say that only because many of the financial advisors in my industry seem to be more concerned about what the next “hot” mutual fund is…or manipulating interest rate returns, eliminating or disguising fees and disregarding suitability with respect to their clients.

In truth, neither the insurance industry nor the investment industry is doing a very good job of defending their respective positions. Point Blank: Financial “gurus” are leaving out critical information. Either they do not have a very good grasp of how life insurance really works, or they are outright lying. Either scenario is totally unacceptable.

Their motives for deception can be numerous, and diverse. Now, there isn’t anything wrong with pointing out the flaws in a financial product, as long as it can be done objectively. However, in the case of life insurance, the attacks being made are baseless and unsound. This is especially shocking because most, if not all, of these attacks are coming from high profile, well known financial professionals. Here are a few common lies, attacks, & misconceptions:

Lie Number One:

Don’t waste your money on cash value insurance. It is a complete waste of money because the insurance company collects premiums from you for 20 years and then when you die you only get the death benefit. They keep all of your cash and your family gets ripped off. Besides, you could make more money by buying term and investing the difference.

Fact: About 1% of all term policies pay a claim. So, your family has (roughly) a 1% chance that they will benefit from that term policy. Term insurance is cheap – IF you are only considering the cost per thousand dollars of insurance. It is guaranteed to get more expensive as time goes on (and you will see this if your policy gets repriced). Life insurance companies are not dumb. They know they can collect premiums from term life and make a killing because the turnover rate is high (people drop their policies before the term is up) or the policy owner simply doesn’t die before the term is up. Life insurance companies are in the business to make money and provide a product. You have to understand how they position their products and how they make money.

Insurance companies use the Law of Large Numbers. They sample a group of people (similar age, height, weight, etc.). The larger the group of people they insure, the more accurate they are about the number of losses they will see.

For example, if we were to start an insurance company and we only had one customer, we would be taking on an incredible risk because of the nature of life insurance, if that one person dies, we could be out of business very quickly (imagine that one customer giving you $20 for a $250,000 death benefit and then dying the very next day). If, however, we have a million customers, then we can better control the risks we are taking by insuring other people’s lives. No one can predict when an individual will die, but if we study a large enough group of people, we can make surprisingly accurate predictions about the number of individuals within that group that will die in any given year. Given that insurance companies have an excellent record of predicting deaths every year, what do all of the statistics say?

Term insurance just doesn’t pay, at least not for policy owners. That’s because most people live to age 65. Term is expensive long-term. Permanent is a good deal long-term. A few critics will still say “no Dave, term is cheaper – always cheaper”. Oh yeah? Watch this:

Let’s look at a male, age 25 and in good health with a wife and a child. In fact, let’s call him Jim (again *cheesy grin*) finds that he needs life insurance He needs $250,000 in life insurance. A 30-year term policy should cost Jim about $370 per year until he reaches age fifty-five. After that, the premiums become unaffordable (as is the case with all term insurance) at $4,700 per year.

Must Know Insurance Saving Tips And Faq

Every person interested in purchasing a health insurance policy is advised to careful consider his/her decision. There are many factors that can influence any type of insurance and the Internet is probably the best place to find information about them and check out some insurance saving tips.

Insurance saving tips depend on the type of insurance you choose. For example, if you choose to purchase a house insurance policy then you should know that by installing home security systems, burglar and fire alarms you can save some money.

It is very important to know how to use the Internet in order to discover the proper insurance saving tips. Choosing a well-organized, reputable website that took some time in presenting the information is a smart thing to do and one should be concerned about every detail when it comes to insurance policies. Aside from insurance saving tips, these websites offer info about various types of coverage, available prices and how to benefit from discounts.

There are many out there confused when it comes to choosing the right insurance policy. Sometimes there is too much information to grasp and too many elaborated terms involved that some persons are quite at a loss to what is best for them. Browsing the Internet for insurance saving tips can not only shed some light on the matter of insurance but also help them make a wise decision.

A lot of people are also interested in the insurance FAQ presented on these websites. By visiting these pages and reading some frequently asked questions about diverse insurance policies, they can come to a better conclusion and choose a policy that is suitable for them.

The truth of the matter is that people really have a lot to ask about insurance policies no matter the kind. The websites presenting insurance FAQ pages are visited on a daily basis by interested customers in purchasing a policy. They want to know more about house insurance, life insurance, health insurance and other types of insurance such as: renter insurance, burial insurance and business insurance.

All these types of insurance policies have specific terms and each one of them serves different purposes. The basis of purchasing an insurance policy remains the same, that is protecting ourselves and our belongings.

The need to protect is in the human nature and it is one of the most natural things in the world. Many people visiting these insurance FAQ pages are wondering if choosing an insurance policy is the right thing to do and where to find the best policy. Of course it is a smart decision to purchase an insurance policy. One should never spend any moment marveling about this case.

Online insurance FAQ is not only helpful but also seen as a place for people to share their uncertainties when it comes to picking out an insurance policy. They ask questions, complicated or not, about various topics including available prices, benefit packages given by employers and state out the importance taking the appropriate financial decision.

Insurance FAQ as it was mentioned before are made to help the customer in distress. If he/she has any difficulty in choosing an insurance policy, the Internet is the perfect resource to understand better all the deal with the insurance industry and take a calculated decision. It is up to us to decide what is best for us but sometimes we could use a little help.

Survival Benefits For Life Insurance

Survival benefits also known as the maturity benefits are paid on the completion of the tenure of a life insurance policy. The amount payable depends on the predetermined terms and conditions of the insurance policy.
Survival benefits for:
Term Insurance- In this type of policy there is no maturity benefit and the policy elapses at the end of its tenure.
Money-back Term Insurance Plan- According to this plan, the total amount of premiums paid is returned at the end of the term of the policy. The premiums in this type of insurance will be higher than those of a basic term insurance plan.
Whole Life Policy- Generally, there is no survival benefit in whole life policy as the policy is for the entire life of the policy holder and only the nominees are paid the death benefit on the passing away of the insured. But some insurance plans may offer survival benefits upon reaching the age of 80 years and pay back the sum assured and bonus to the insured individual.
Endowment Policies- These plans act both as an investment and mortality risk cover so survival benefit is the most important component. In Endowment insurance policies the sum assured is paid back along with the bonus/ return on investments. The premiums paid are invested in safe bonds and profits earned are paid as bonus to the policy holder at the end of the tenure of the insurance policy.
ULIP (Unit Linked Insurance Plan) � Generally in ULIP plans, the survival benefits comprise of the fund value at the time of maturity of the plan. Some ULIPs are structured differently for e.g. the maturity benefit may be paid according to the highest NAV achieved during the tenure of the plan.
Money-back Plans – These plans pay back the sum assured and guaranteed returns as survival benefit. In fact a policy holder can make periodic cash withdrawals during the tenure of the policy. On maturity of the plan the policy holder gets back any residual balance of the sum assured and accrued bonus. The main difference between survival benefit pay outs of Endowment plans and Money-back plans is that in an Endowment policy the survival benefit is paid at the end of the tenure of the policy whereas in case of Money-back plans the maturity benefit is paid at regular intervals during the policy tenure.
Children’s Policies- At the end of the specified period of the insurance policy the nominee i.e. the child will receive the sum assured along with any accumulated bonus/ guaranteed returns. The maturity benefit is not affected by the death of the proposer who may be the parent or guardian of the nominee. In case of Money-back plans, benefit will be paid out periodically to the nominee and the balance will be paid out at the maturity of the plan.
Joint Life Insurance Policy- This policy is similar to Endowment policies and offers survival benefits to one or even both the policy holders if they outlive the stipulated period of the plan. At the maturity of the plan, the sum assured and accrued bonus, if any, is paid out to the insured.
The survival benefits vary for different plans and are designed to give a variety of choices to the prospective policy holder to suit his unique requirements.