Insurance versus assurance: what is the difference?Written by www.bigmouthmedia.com
The world of finance is extremely complicated and there are many factors to consider when choosing any financial protection product. When looking for a policy you need to know what you are looking for and what is on offer in order that you get right cover for your needs. One thing that many people find confusing is specific use of term “insurance” and use of “assurance”. What are differences between them? In general, term insurance refers to providing cover for an event that might happen while assurance is provision of cover for an event that is certain to happen. For purposes of financial provisions, a life insurance policy provides cover for a set period of time. If worst were to happen during that time (and there are no complications), then insurance company will be required to pay out agreed sum to beneficiary. The only time policy has any real monetary value is if there is a claim made for payment as a result of an event triggering that claim, such as death of person covered. If person outlives term of policy, then insurance policy will cease and no payment will be made. Life assurance is different from insurance, and will always result in a payment. This is achieved by combining an investment element along with and an insured sum. This means that over time value of policy can increase as investment bonuses are added. If a person covered by life assurance were to die, then insured sum would be paid out, alongside investment bonuses which would have accrued over time. If it is necessary to cancel policy prior to end of any designated term period, or death of life being covered, then once an investment bonus has been added, life assurance policy will have an encashment value. It is therefore possible to cash in a policy earlier than its usual termination date, in order to collect on investment portion. It should be noted that many insurance companies place penalties for cashing in policies early.
| | Bankruptcy Best Bet?Written by Alli Ross
Filing bankruptcy is a common practice among U.S. Over 2 million people file for bankruptcy every year. So many families today are swimming in debt, which is not surprising with amount of credit that is being offered. If you pay your bills, you're given opportunity to run up more bills. For young people, this is often too much responsibility to handle. Many people choose bankruptcy in order to gain a fresh start. However, bankruptcy leaves you with a bad record. This makes it harder to buy a house, a car, or any other big-ticket item soon after you have filed for bankruptcy. Mortgage lenders will certainly be more cautious before granting a loan to someone with a history of bankruptcy. Luckily, there are other choices. Debt Consolidation It seems like every other TV commercial is talking about debt consolidation. Why? Well, it's a big market and many people are opting for debt consolidation before taking plunge into bankruptcy. Before you decide to take this route, you must ask yourself: Will I be able to pay all of my other bills on time and still be able to survive monthly? Failing to pay a debt consolidation loan could cause you to lose your home to a creditor. So, before you decide to consolidate your debt, make sure you can handle payments. Know all of facts.
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