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.