Capital Investments

22Jun/11Off

Advantages Of Whole Life Insurance

The main advantage that whole life insurance provides over term life insurance is that it can provide many benefits to you while you are living, as opposed to being a benefit for your beneficiaries only after you have passed away. Besides having a guarantee that the premium rate will never increase, there are several other attractive benefits that make whole life insurance a good income protection insurance choice.

In the unlikely event that you are sued, the money earned from a whole life insurance policy is unavailable to those who sue you. Since the money is intended for your beneficiaries, it is not legally viewed as being your own, even though you can benefit from it yourself throughout your lifetime.

If you apply for a loan and need collateral, you can use your whole life insurance policy instead of your car or home if you desire. Also, the value of your policy is appreciating, rather than depreciating, so it will be more attractive to a potential lender.

Unlike a 401K, you can borrow from your policy without penalty and without having to pay it back, although you will be charged interest on the loan. If you choose not to repay the loan, its principal will be subtracted from any amount paid out to your beneficiaries at the time of your death.

When you purchase a whole life insurance policy, you will earn dividends which you can choose to have sent to your directly. If you opt out of receiving your dividend checks, you can let your insurance broker know that you would like to have the funds go toward additional life insurance.

Should you become disabled at any time during the course of the policy and are unable to work, the life insurance company will pay it for you if you signed up for an optional disability rider when you started the policy.

Finally, a whole life insurance policy has the advantage of offering you guaranteed cash value in addition to a death benefit. Unlike other forms of investment, you never have to worry about its value decreasing.

We'd like to thank Miss Sue Lang on this great article.

Filed under: Insurance Comments Off

13Jun/11Off

Ponzi Schemes

"Ponzi scheme" is a type of fraud from which Charles A. Ponzi in the twenties of the twentieth century defrauded hundreds of "investors". Ponzi schemes promise very high interest rates on loans to investors.

How it works?

"Entrepreneur" published work on a very profitable business that guarantees high revenues and profits, but he needs a loan, ie. cash. "Employer" provides a "entrepreneur" loan of $ 1,000 with a repayment period of 90 days and interest of $ 100 which is payable on the ninetieth day. During those 90 days, "entrepreneur" is promising the same to the new "investors" B and C. At the end of the period on "Investor" offer to pay him $ 1,000 and interest of 100 but not to give up the principal and interest and once again offering the same excellent conditions. The money for this purpose has since received funding from the "Investor B and C. Most "investors" believe and raise that money. Individuals who believe they paid on the spot, the money received from others, and it raises the "rating "of "entrepreneur" as a serious business and people. The number of "investors" are increasing.

This operation takes some time and ends up by "Entrepreneur" get away with money or publish problems in the payment or bankruptcy, because the disturbance of the "market" where he had a large income.