By Uzoamaka Opportunty Elu
Article from ezine
For an intending entrepreneur, especially one who is planning to start his own business take off and grow, life insurance is a policy he may consider buying. The reason is that life insurance goes beyond the primary reason to protect ones dependent against the loss of your income or services, (death settlement); it also helps a person to plan for his future. Of course, life insurance has various products with savings and investment targets.
To many, insurance is about paying a regular premium to the insurance company in order to get compensation whenever a loss occurs. But aside from this, insurance could be a viable means of making money, especially through investment in some insurance products.
A key peculiarity of investment - linked insurance products is that they help the policy holder to save for the purpose of investment. Some other characteristics of such products include allowing the policy holder to get interest on his savings; giving him access to loan to financial counseling as well as compensation for his dependents, if he dies before the policy matures. An investment-focused insurance policy helps to cultivate a savings habit in person, while motivating him to focus on his set plans.
These policies are provided by life and composite insurance companies. As expected, they usually have different benefits attached to them.
However, it is advisable, any individual, who wants to achieve a target (which could be an investment plan or a project), to get a flexible investment plan policy. A flexible investment plan is a long-term investment plan policy (of 10 years span, for instance), but with highly competitive guaranteed compound interest rates. The policy also includes a sizable guaranteed death benefit and is available to anyone under the of 55.
I noted that the product provides for the payment of additional contributions at any time within the policy term. At maturity, the policy owner can be allowed an option of extending the policy contract, if he wants.
Interestingly, the insurance company will support the dependants of policy owner with sizable, in-built life coverage, if he dies within the early years of the policy.
By this, the investment policy is well structured to protect the living and alleviate the suffering of the dependents of the dead. Besides, the policy can be pledged as collateral security to raise a loan.
The best way to analyze the amount of life insurance you want is to take the following three steps:
Compute the financial need
List the everyday expenditure that will have to be covered by your loved ones once you die. Think about the one time operating cost that occurs immediately ahead of and after a death. The major monetary cost of your premature death is the loss of your income. How many years did you plan to support your loved ones? How much will everyday expenditure decrease because you are no longer there work out the capital available to meet those needs If you have considerable savings or other assets, you may choose to plan on using these funds to cover part of the monetary need. Subtract these resources from the financial need calculated above to determine how much life insurance you should purchase. Now that you've recognized the monetary need that will exist on your death and the resources available, you can shut the gap among the two with life insurance. Shop around and compare prices and coverage's carefully. TO IMPROVE YOUR INVESTMENT VISIT http://globalnigeriajobs.com/
It's significant to appraisal your need for life insurance periodically as your position change. Having another child or buying a new home could prompt a need to buy more life insurance. For more update visit http://thelucrativesearch.blogspot.com/2010/10/improve-your-investment-profile-with.html
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Article from ezine
