Buying the right insurance is not the easiest task to perform. There are many types of insurance policies which offer assurance and coverage for a wide variety of risks and liabilities. The first choice to make is whether to go by the word of a sales agent or the advice of a consultant you pay per hour to give you unbiased advice.
Seasoned professional financial advisers like Eric Viveros and Jeffrey Michael Viveros understand the fear that drives individuals towards buying a policy. However, it would be unwise to expect policies to serve all kinds of purposes. There are policies which offer investment opportunities but the returns are rarely as gratifying as returns from real estate investments on returns on certain kinds of securities.
There is term assurance for example, where you get life cover over a fixed period without any savings element. The policy expires at the end of the term and you receive no payout. In short, you pay a premium for the life cover during the tenure when you have certain liabilities whether that is a house loan or any other debt. Mortgage protection is another reason why one can choose to opt for term policies.
There are also policies which are for whole life and also include a substantial payout at the end of a specific period. There are policies to safeguard family income and endowment policies which help you save some money. Some policies build cash value based on interest or investment components which are then paid out to you at the end of the term. Investment Retirement schemes solve a purpose, offering benefits or a fixed pension after a certain term. Similarly, insurance policies too offer certain benefits like cover while you still have dependents and financial responsibilities.
It is important to consult an expert who can help you compare two different products and then pick and choose the ones that fit your portfolio perfectly. Every portfolio should include certain percentage of stock investments, some real estate assets, bonds, mutual funds, retirement schemes and insurance. How much to invest in each of them is what a consultant can assist you with. The wrong percentages could mean you misuse your cash reserves and don’t get the returns that you should have gotten.
From managing debt and mortgage to investing in the right stock, a consultant can help you guard yourself and your family from risk, even without investing heavily on insurance. Through strategic planning, you can even make sure you save on taxes and manage maximum inheritance for your dependents.
This advice from consultants is personalized as the steps that need to be taken are different for individuals in different age groups and in different income brackets. Besides, a consultant will hear out what your liabilities, goals and lifestyle needs are and then advise you accordingly and point you in the right direction. This cannot be done by a sales agent with a narrow range of products, be it mutual funds, stock or policies.