Daily Investment Tips

Life insurance is often considered as an investment that one makes to secure his future and that of his family. There are two common types of life insurance, the term and whole life insurance. Term insurance insures’ an individual for a specific period of time like 20 or 30 years. This has little if any benefit since the sum insured is only payable after the event of death of the insured within the insured period. However, the whole life insurance policy covers the insured for his lifetime and in case death occurs then his beneficiaries receive the sum assured by the insurer.

Payment of Premiums

Whole life insurance is a good way of securing your family’s future in the event of your death. The amount of premiums to be paid varies depending on factors such as age. A young person taking a whole life insurance policy will be required to pay a less amount for his premiums while a one who is in his old age will be required more for his premiums.

Another factor determining amount is the health of the insured. A healthy person will be required to pay fewer premiums compared to a person with unstable health condition. The amount of premiums paid will also vary from one insurance company to another depending on their rates and interests. One with a high income earning can also choose to increase the value of his premiums hence the amount assured after maturity of the policy will be higher.

Why Invest in Whole Life Insurance

There are many benefits that come with taking a whole life insurance policy. Although most of these will not directly benefit you as the policy holder, they will be of great importance to your family or the beneficiaries after your death. Here are some benefits of whole life insurance.

o It offers financial security to your family. In case of death, one is assured that their spouse and children will continue living a comfortable life afterwards. This is usually the main reason people take this policy and is quite reasonable.

o It can be used for a loan. A life insurance policy holder can take a loan out against the cash value. In this case the money taken belongs to him therefore he will not be required any interest or pay back the amount taken.

o It offers tax benefits to beneficiaries. The insured amount in most cases is free from income tax to your named beneficiaries.

o The amount assured can be used to pay off mortgage loan in the case of death of the insured party.

o A whole life insurance policy can be used to cover expenses after death of the insured. These include funeral costs or family expenses such as the children’s college funding.

Having a life insurance is with no doubt a good investment strategy not only to your benefit but also to those you leave behind. It saves you the worry of wondering what will happen to your family and loved ones once the time of your death comes.

Article courtesy of auto insurance.

written by Constantine Njeru \\ tags: Beneficiaries, Benefit, Case Of Death, Financial Security, Health Condition, Healthy Person, Insurance, Insurance Company, Insurance Life, Insurer, Invest, Investing In Life, Life Insurance Policy, Lifetime, Maturity, Period Of Time, Premiums, Term Insurance, Whole Life Insurance, Young Person

A reverse mortgage is a loan available to senior citizens above age 62. What happens is that the equity in a home is used to give a loan. The loan provides the borrower with an income stream. The loan amount paid out in a steady stream of payments or in a lump sum like an annuity.

What happens is that the Senior citizen gets an income to live on in his sunset years while the bank now owns the home. The reality of the situation will come clear when the borrower dies. The beneficiaries of the deceased estate will only be entitled to any equity that is left after all of the cash from the deceased’s estate has been used to pay off the mortgage. Sounds scary!

Risk & Disadvantage Of Reverse Mortgage

1. Reverse mortgage is expensive because a borrower has to pay high upfront costs e.g. origination fees, mortgage insurance, appraisal fees & attorney fees.
2. The borrower loses full ownership of their home.
3. The family is left with a mess to deal with when the borrower dies.

written by Constantine Njeru \\ tags: Amp, Annuity, Appraisal Fees, Attorney Fees, Beneficiaries, Deceased Estate, Income Stream, Insurance, Insurance Appraisal, Lump Sum, Mortgage Insurance, Mortgage Loan, Origination Fees, Reverse Mortgage, Risk, Senior Citizen, Senior Citizens, Steady Stream, Sunset Years, Upfront Costs

Seychelles offshore centre has grown to be a major destination for investor wishing to set up an offshore trust.

This are the feature & benefits of a Seychelles offshore trust as provided by Seychelles financial regulator.

• One-off registration fee
• The transfer or disposition by a person creating an international trust cannot be invalidated by any foreign rule of forced heirship.
• No restrictions on the accumulation of income
• Settlors or trustees themselves can be named as beneficiaries under the trust
• Sthe law governing an international trust is the law chosen by the settlor to be the proper law
• No requirement to mention the names of the settlor and beneficiary, unless the latter is a Seychellois
• An international trust is valid and enforceable in Seychelles

• Disclosure of information or documents relating to an international trust can only be effected in extenuating circumstances involving criminal activity

written by Constantine Njeru \\ tags: Accumulation, Amp, Beneficiaries, Beneficiary, Disclosure Of Information, Extenuating Circumstances, Financial Regulator, International Trust, Investor, Names, Offshore Centre, Offshore Trust, Registration Fee, Settlor, Seychelles Offshore, Seychellois