Sunday, October 18, 2009

What are the uses of Insurance?

 insurance

Main uses:

1] Financial protection against premature death

- Whole Life

- Term

- Endowment

2] Financial protection against outliving ones resources

- Annuity

- Endowment

3] Financial protection against ill-health

- Critical illness

- Hospital cash (income)

 

Alternative uses:

1] Protection against creditors

2] For charitable donations

3] Funding Trusts at death

4] Investment (note: Personally, i do not recommend using Insurance as an Investment vehicle)

 

Business uses:

1] Indemnify against lost of keyman

2] Credit enhancement

3] Business continuation

4] Employee benefit plan

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