Insurance 101

Nature of Life Insurance

Life Insurance is concerned with the following:

• Loss of earning capacity
• Loss of financial support for dependents
• Loss of financial inflow for others such as creditors and business associates.

It is risk sharing through ratable premium contributions to a Life Assurance Fund where the benefits are paid to the designated beneficiaries.

Human Life Value of Man

Human life has an economic value.

It is defined as the capitalized monetary worth of the earning capacity of an individual devoted to the support of his family during his working lifetime.

Why Buy Insurance? 

The need for gradual accumulation of earnings.

To replace income loss when earning power ceases either through death, disability or old age.

3 Hazards of Life

• Old Age- consist of age nearing or surpassing the life expectancy of human beings, and thus the end of human life cycle.
• Disability- is the consequence of an impairment that may be physical,cognitive,mental,sensory,emotional,development or some combination of these.
• Premature Death- are deaths that occur before a person reaches an expected age, for instance, age 80. Many of these deaths are considered to be preventable.

Services of Life Insurance

• Family Protection 
• Income Replacement
• Clean-up Fund
• Guaranteed Savings
• Retirement Fund
• Education Fund
• Mortgage Redemption 
• Estate Conservation
• Investment

 

How to Build a Solid Financial Foundation

A solid financial foundation is comprised of assets that provide protection and savings.

Building a solid financial foundation is like building a house.You must build it from the ground up,build it right and build it strong.

The planning illustrates how these choices should be used in conjunction to achieved a balanced financial standing. If all of your assets invested at the top of the illustration your plans could become unstable.If all of your assets were invested at the bottom ,you wouldn't be giving enough attention to asset growth and future accumulation goals.

• A solid financial plan is based on a combination of a strong foundation of protection and savings.
• Portfolio diversification is fundamental to a comprehensive plan and may reduce overall risk.
• Proper risk management is essential to securing your financial future and accomplishing your accumulation goals.  

 

How to Convince Yourself That You Are a Winner

If you feel terrible and need to feel better, then read on.

The Winner is always a part of the answer. The Loser always a part of a problem.
The Winner always has a problem. The Loser always has an excuse.
The Winner says let me do it for you. The Loser says is not my job.
The Winner sees the answer of every problem. The Loser is always seeing the problem for every answer.
The Winner says it might be difficult, but it is possible. The Loser says it might be possible, but it is difficult.

A Winner listens. A Loser waits until it is his turn to talk.
When a Winner makes mistake, he says I was wrong. When a Loser make mistake, he says it is not my fault.
Winner says I am good but not as good as I could be. Loser says I am not bad as other people.
A Winner feels more responsible for more than his job. A Loser says I only work there.

6 Effective Ways to Avoid Scam Online

Ways to avoid scam online

There are many scam online that you want to avoid.Here are some things you need to do.

1.Avoid suspicious websites
If a website suffers from poor design or multiple pop-up windows it might not be a legitimate retailer.To stay safe stick with big name retailers or on a smaller site familiar payments system like paypal.

2.Don't click in hyperlinks in email.
A common scam involves sending emails that ask the recipient  to open an attachment and then enter personal information such as bank account numbers.The better business bureau recommends ignoring any emails that make this kind of request.

3.Keep your social security numbers to yourself.
Fraudulent emails and fake website sometimes request social security numbers.Legitimate businesses almost never make such requests.Shoppers should not share this information online.

4.Use strong password.
Retail site often ask password at checkout.Using the same password across multiple accounts,including financial accounts can leave you risk for password break ins.For important accounts,use only secure password that are long and difficult to guest.

5.Don't friend strangers 
Fraudsters sometimes prey on people over social media sites such as Facebook.To protect themselves,consumers should avoid accepting friends requests from stranger.Its easy to unfriend someone after accidentally accepting a friend request.

6. Avoid A 60 Day Guarantee
If the sales page of product constantly emphasizes the fact that there is a guarantee,chances are that it might a scam.In particular if it is a 60 day guarantee which typically means that it is a clickbank product that means likely  low quality one.