CAPUT58

One of the most powerful aspects of purchasing a life insurance policy is the ability of the insured to create an immediate estate, which is legally valid and recognizable in the court of law. The very act of the insured submitting a signed proposal form with payment of appropriate premiums forms a contract between the insured and the insurer. Read the rest of this entry »

As our financial situation changes through the stages of life, so does the need for life insurance. Once you have purchased life insurance, consider reviewing your policy in the event of major life changes, such as a marriage or divorce, additions to the family, purchase of a new house or paying off a mortgage. Make certain your protection continues to keep pace with your needs. At a minimum, you should have a professional review your circumstances at least every five years. Read the rest of this entry »

* After determining your needs for life insurance using the Life Insurance Needs Analysis, you may have to decide on how much you want to buy, for how long and how much you can afford to pay. Be sure that the premiums are within your ability to pay. Don’t look only at the initial premiums, but take into account the possibility of future premium increase. Read the rest of this entry »

The growth of the nation’s economy is due to the presence and usage of physical capital and human capital that businesses in the system as a totality possess. When the economy expands, job opportunities are created. Without such growth, there would not be sufficient job opportunities for the people, and unemployment will result. The fact is that both forms of capital are valuable - and both are destructible. Read the rest of this entry »

Life Insurance Needs differs from one person to another but, in general, an individual’s needs are greatest from the time he started his career or a family until the time he reaches retirement age, where his needs for life insurance gradually diminishes. The following are some of the factors that should be considered when estimating how much life insurance you need and how much protection that you should have. Read the rest of this entry »

In simple interest theory, a capital sum of $100 that is accumulated at 5% per annum would derive an interest amount at the end of the year of $5. If the interest is not included in the capital sum, a 5 year interest accumulation at the same amount and interest rate would mean a total of $25 in interest earned. There is therefore no re-investment of interest. Read the rest of this entry »

Whole Life Insurance is the most common type of permanent life insurance. It is designed to provide a permanent form of insurance coverage on the life of the insured as long as the renewal premiums are paid. The premium amount to be paid is usually level during the insured person’s lifetime. In addition, these policies accumulate cash values on a tax-deferred basis. The rate of return on whole life insurance cash values is dependent upon a number of factors including the results of an insurance company’s investment performance. Read the rest of this entry »

Quite often, we hear people saying that insurance is a gamble. The common assertion is that the insurer is betting that the insured will not die within the insured term, while the insured bet the other way. This could not be further than the truth. In gambling, a risk is created where non existed before. If for instance, you buy a bet from TattsLotto for $100, you have in effect created an unknown risk for yourself of the possibility of losing $100. The risk was not present before the bet was made. Read the rest of this entry »

Term Life Insurance is a temporary life insurance that provides protection for a specified period of time at a very affordable low rate. The duration of term life insurance policy varies from one, five, ten, fifteen to twenty years or expiring at some specific age. A death benefit is paid to the beneficiary if the insured dies within a specified period of time while the policy is still in force. If the insured lives longer than the term of the policy or stop paying premiums, the policy is no longer in effect. The insured builds up no equity in a term policy. Read the rest of this entry »