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Archive for the ‘Loans / Insurance’ Category

Hi cronies,

Planning has been one of the primary tools for managing day to day affairs for one’s whole life. Planning provides the safety cover for you and people dependent on you. If you are the bread winner of your family your loss could be not only lead to emotional breakdown but also financial discomforts. Unfortunately many believe that life insurance is not an investment with greater returns but one should realize it is your life’s investment covering for your dependents. Your insurance cover is the one which will give assistance to your dependents in your absence.

Understanding why to insure alone does not help, but one should also need to know what is the amount needed for the future? Thus, life insurance calculator is a tool usually available with a number of online insurance websites which helps you to appreciate as to what is the mount required to be planned in the policy based on the present financial situation. Calculators are available for a variety of insurance needs like planning for your life cover, planning for child’s education, retirement, etc. A variety of insurance policies are available in the market only due to the different needs of individuals. Some of them are whole life insurance, term life insurance, variable life insurance and universal life insurance.

Whole life insurance policy is typical life insurance policy which is more beneficial when taken at a young age. Variable life insurance policy is a mixture of typical life insurance policy and investment in stock hence it involves market risk. Term insurance is a time bound policy as per the choice of the insurer and is the most popular of all as it is cheaper. Since it is a time bound policy, in case of exigencies after the policy term, the insurer’s beneficiary would gain nothing.

However, universal life insurance policy is a policy plan which encompasses all the benefits of the above mentioned policies. However, it works more closely like a whole life insurance policy but yet flexible as it allows the insurer to adjust premiums and policy benefits of the policy within the policy term. The money is invested into markets for more aggressive investment returns, further better benefits are reaped when the policy is taken for longer period like more than 20 years. This is an investment cum life insurance policy. The insurer has to plan his premium as per the change in the market for better benefits through constant monitoring of his fund growth.