Studies have shown that 80% of us overestimate the cost of insurance (LIMRA, 2015). This is detrimental for two reasons. One, monthly insurance premiums cost less than a coffee for many people. And two, insurance is one of the best investments you can make. Here's why: 1. Term Insurance is for financial obligations that have a fixed duration, such as a mortgage, car loan, or a child’s post-secondary education. This is like money in the bank, should there be a need to cover these costs. In other words, if you die during the term of the insurance, your financial obligations will be covered. 2. With Permanent Insurance, you are not only covered for life, your policy also includes cash value. In this sense, insurance is a savings plan that you can cash in after a specified period of time -- or that can be used to pay for expected costs...
The concepts behind money and insurance have been around a very long time. Bartering was the first system of trade. I'll give you an axe if you help me hunt a mastodon. Some time in the distant past, our ancestors started using various objects as currency -- things like salt, beads and shells. The point of using replacement objects, instead of the real thing, was to speed up the process of bartering. In about 1,000 B.C. the first coins were made, in China. The first "official" coins were minted in 600 B.C. in Lydia, or what is now western Turkey. Having the world's first monetary system made Lydia wealthy, giving birth to the saying, "rich as Croesus" after the Lydian king who minted the first gold coin. When Marco Polo visited China in about 1200 A.D. he found the first paper money in circulation, with the inscription: "All counterfeiters will...
You know you need to buy insurance, but you may not know exactly why. There are the obvious reasons -- such as protecting your family financially -- and some that you may not have considered. Here we show you the top 5 reasons for buying term life insurance. First, the definition. Term Life insurance is life insurance that provides a death benefit if the insured dies during the period specified in the policy, subject to the policy terms and conditions. It is a great idea to have Term Life if you have financial commitments that your family depends on such as mortgage payments, debt, and your children’s education. If you're still a little in doubt about term life insurance, you can research what is term life insurance. Teachers Life offers three term life products for Educators: Online Individual Term insurance, Renewable Term Life Insurance and PermaTerm (which covers you to...
Do you know what insurance is? Or why we need it? Sometimes, going back to basics can clear up any gaps in knowledge or misunderstanding you may not know you have. To help you understand this important financial tool, is the Dummies Guide to Insurance: What is insurance? Simply put, insurance is a contract (also known as a policy) between an individual and an insurance company. The policy states specifics about the type and amount of financial protection the insurance company can offer an individual, like you. Insurance is an essential if you have loved ones or assets you need to protect. A simple guide to understanding insurance 1. Risk, Risk, Risk In real estate, the mantra is "location, location, location." In insurance, it's risk, risk, risk. At it's essence, insurance is a way of managing risk. The modern insurance industry got its start in London, England following the plague...
