Financial Advice on Different Types of Insurance

There are many different types of insurance which are available to cover your risks. When you are into the process of income planning, you must make sure you are well covered from all the risks. Consulting an insurance agent who doesn’t charge you for his time is a decent idea to come across all the different policies which are available in the market. However, each agent will only have a narrow range of products which don’t prove to be comprehensive enough. Talking to multiple agents can leave you confused as well. You can also consult an experienced financial adviser like Jeff Viveros who knows not only about insurance policies or pension plans but about financial instruments and markets in general.

Apart from the commonly purchased life and health insurance that take care of medical emergencies, treatment costs, accidental loss of life, etc., there are other policies covering different aspects of your finance. There is property insurance to cover damage to vehicles or your assets. There is travel insurance to cover personal risk and luggage risk while travelling. You can also go for liability insurance if you have a business and are at risk of having to pay for too many claims.

A consultant will also take you through other policies that offer some financial stability and security to the policy owner. For example, there are whole-life policies which are permanent and cover investments as well as life risk. The policy offers an assured amount to the dependents if the policy owner dies. However, the policy also comes with a cash value because the policy provider utilizes part of the premium to invest in the markets, whether that is securities or bonds or some other financial instrument.

There are tax benefits on the cash value of some policies. Another advantage offered by these policies is the fact that one can borrow money or take loans with the cash fund of the policy as collateral. The returns depend on the market returns and there is nothing assured about it. There are also other policies such as variable life and variable universal life. The returns although not guaranteed in terms of amount, are steady and connected to the performance of stock.

If you want to go for a cheaper policy, you can ask the consultant for advice with term insurance where the premium is low. There is an assured amount that one can claim in case of occurrence of the event against which the policy was purchased. If the term expires, the individual does not stand to receive anything from the policy provider. There are some policies which can be renewed by the policy provider year after year. It should be noted that for most policies the premiums increase as one gets older considering the risks that are associated with senility. Although, insurance policies are not a pure out and out investment product, you can purchase them to cover risks against your investments, properties or earning capability. You can buy coverage for a specific term or for life.