Life Insurance- Protecting Finances and Loved Ones

 

Life Insurance Coverage

Life insurance is also referred to as life assurance or life cover. It provides financial protection for loved ones or named beneficiaries in case you die during the valid period of your policy. Protecting against financial loss that results from an insured’s premature death safeguards beneficiaries from the financial impact of death.

Aspects of Life Insurance

  • A life insurer pays the death benefits in consideration of the insured’s premium payments. Life insurance entails a contract between a life insurance company and the person with insurable interest. The financial risk of untimely death is transferred to the insurer for a specified premium amount.
  • It is important to note that life insurance is not an investment or saving product and unless a claim is validly made or you have permanent life insurance, there is no cash value.
  • You determine how much cover you need as how long you will need it.Premiums can be made on a monthly or annual basis. Your family has peace of mind knowing that in case while you have the policy coverage, they will be paid when a claim is made accordingly. These funds can be used to cover mortgage payments, child-care costs or household bills.

Dependents

If you have a spouse, children or anyone who depends on you for income or financial help, life insurance is an important consideration. If the income you earn as part of a couple or sole breadwinner helps with household costs, the family may find it difficult to pay bills such as rent or mortgage without that money. Learn more about JUNIPER LIFE INSURANCE here.

If you work from home or part- time, you family may struggle to handle the expenses of finding someone that can look after the children if you are no longer around. Any individual who has dependents is advised to take out life insurance.

Debts and Loans

Life insurance can also be essential if you have an outstanding mortgage, loans or debts. It can pay out a cash sum in case you die during the policy term. The money could be used for the purpose of helping to pay debts or assist the family with daily living expenses and child care costs. It can also help with funeral expenses.

Death Benefit

Death benefit is a term that is used for the cash amount that the beneficiaries of the insurer receive from an insurance provider upon the insured’s death. While the insured determines the amount of money, the insurance provider must establish whether there is insurable interest and the insured qualifies for coverage according to underwriting requirements.

Premium

The life insurance company determines the premium amount required to cater for mortality costs. This amount is typically based on actuary statistics. Main determinants of risk include lifestyle, family and personal medical history and the insured individual’s age. As long as the premium is duly paid, the insurer has an obligation to make the death benefit payment.

Cash Value

With permanent life insurance there is a component of cash value. As a savings account, it enables the insured to amass capital for a living benefit. Accumulated capital can be used for any reason when the insured is alive. The insurer also uses it to mitigate the risk.

Checkout Unique Finance and get a bonus from me.

How to recognize a good investment opportunity

 

A series of good investments can fund your ideal lifestyle, allowing you to retire sooner than expected or walk away from a job you dislike. Alternatively, bad investments can deplete your savings and damage your prospects for the future.

Knowing the difference between the two and finding the right opportunities at the right time is never straightforward, but knowing what to look out for when it comes to a potential investment – as well as what to avoid – can go a long way towards making sure your money always works in your favor.

Long-term viability

If you are risk-averse, you should confine your investments to those stocks and shares that you will be happy to own for at least ten years. While fields such as cryptocurrency may provide the opportunity to make large sums of money in a short amount of time, the best investments are those which provide solid returns and allow you to reinvest your dividends, either into the same company or into a more diverse portfolio.

Therefore, if the business or area you are thinking of investing in seems like a flash in the pan affair or temporary fad, you should proceed with extreme caution. That said, it’s important to factor in a plan to deal with any regrets you might have about an investment well in advance. This can include the regret that comes with making a loss but also the regret that comes with seeing an investment grow in value after you made the decision not to get involved. Dealing with the emotional ups and downs of investing at an early stage can make it easier for you to stay on track.

Alternative markets

Old standards such as property are likely to remain a good investment, especially if you are in for the long haul, but there are also a number of new ventures that offer a good return and a low level of risk, such as the growing field of peer to peer lending – a system in which investors provide the capital that is loaned out to businesses looking for cash injections.

One of the key advantages of peer to peer lending is that you can be actively involved in deciding exactly who you want to lend to. You can also share the risk with others by investing less than the full amount. Firms such as Folk2Folk.com only lend to those who can provide an adequate level of security, further reducing any risk to their investors.

Simple business models

While investing in the latest innovations and trends may provide great opportunities for some, if you invest in an area of business in which you have little understanding, it will be far more difficult for you to judge the market conditions and know when it’s a good time to cash in your shares or purchase more.

If you find a business that has a very simple business model that you fully understand, such a business is likely to operate in a more stable manner and have a solid growth curve at its core. Although the returns may not be as spectacular, investing in such a field will also provide you with far greater peace of mind, in addition to an additional income stream.

Checkout Unique Finance and get a bonus from me.