Every financial plan has a goal and the goal you are pursuing influences your decision at any point in time. Because every individual have his or her own goal, based on his or her unique characteristics, it is very important that you take you time to review your goals from time to time.
In deciding where to put your investment, the first thing that should come to your mind is safety and returns on investment, while the next will be whether the investment plan aligns with you future expectation taking into cognizance what you unique characteristics are. When these has been considered, the next important thing is weighing among the different investment options which one offers the best benefit that places you in that position of comfort that you dream to be.
There are a number of ways people plan for their future. What counts at the end of the day is how your plan translates into giving you and your dependants comfort and that peace of mind you require, experts said. While the investment market is volatile with a lot of risky investment products, one should look at their different characteristics.
Insurance as one of the investments products, like stock market as well as properties have its own challenges, so requires that you select from the different products one or some that meets your individual need and expectation.
As experts put it, taking the right decision on your insurance need is very important in realising the objective of your investment plan, because every insurance policy has specific need it serves, and also for different people based on their individual unique characteristics.
Now, life insurance has been broken down into two. One that will offer cash value during the life time of the policy and another that will not offer cash value during the lifetime of the policy. So, when you shop for life insurance, you’ve got two basic options to choose between term or permanent life insurance, so, while term life insurance may not offer any cash value, permanent life insurance offers.
So, the decision to take a life insurance policy therefore is not only because someone wants to have peace of mind or that in the event of him or her not being there to provide for his family or dependant as a result of death, they can continue their life unhampered, but because there is also cash value.
Permanent life insurance, such as whole life, universal life or variable universal life insurance covers you for the duration of your lifetime. It also offers a feature that’s commonly viewed as a strong selling point: cash value. In addition to lifelong insurance coverage, a portion of your premium payments goes toward a cash value account that grows tax-deferred over time.
Experts explained that this kind of insurance provides permanent protection for your dependants while building a cash value account.
· With this type of insurance, the insurance company manages the policies in various accounts.
· It pays a death benefit to the beneficiary you name and offers you a low risk cash value account and tax-deferred cash accumulation; it provides a fixed premium which can’t increase during your lifetime as long as you continue to pay the planned amount.
· It allows the insurance company to exclusively manage the cash value account in your policy.
· It provides you the option to receive dividends from your policy or apply them to reduce payments; it offers you the right to withdraw from the policy during your lifetime.
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