Insurance is the process of indemnifying an individual or a group against loss. It must be pointed out at the outset that insurance cannot be used for betterment. That is, it is not a means of profit but a means to reduce the amount of loss to a minimum. In no way can an insurance company reinstate a policy holder to a position where his or her position would be better than they were before the incident leading to the claim. In all cases the policy holder will have to bear some extent of the loss – in most cases it will be minimal.Insurance is the process of paying a monthly fee – called a premium – to the insurance company as a safeguard against loss amounting to a certain sum of money. The monthly fee, or premium, is determined by the maximum amount the insured can be indemnified with. Should the insured land in a situation where he or she will suffer financial damages the insurance company will payout an amount to the insured or other agencies to reduce the financial loss of the insured.There are many types of insurance policies and companies. There are government insurance agencies as well as private insurance agencies. These companies deal in health, insurance, life insurance, auto insurance, home insurance, and what not. In fact, anything under the sun can be insured. This is called general insurance.We will discuss life insurance here with a view to using life insurance as an investment option. Life insurance is nothing but insuring ones life against a certain sum of money. Now, this does not mean that once insured one cannot die. It just means that your dear ones, called beneficiaries, will get a certain sum in case of your death.The sum that the beneficiaries will receive on the death of the insured will depend on the amount the insured had agreed to in the policy and also depends on the timely payment of premiums by the insured. However, in case the insured services the insurance policy term, which is normally 15 to 20 years, he or she gets the total sum insured with interest at the end of the policy term.This is where life insurance can be used as an investment. The insured will get back certain sums of cash out of the total sum insured at intervals of five or six years or as the policy may determine should the insured survive the period. If the policy is for 20 years the insured will get 4 installments of the sum assured. Then at the end of the policy he or she will get a lump sum of cash. However, in the event of the death of the insured the beneficiaries will get the total sum insured as well. This is where Life insurance can work out better than any investment plan.
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Unsecured Business Loans For Beginners
Any financial lending is carried out by the understanding that the borrower will keep his word that he will repay. In the normal course, it is expected that the borrower will provide requisite documents as security for the loan. Other requirements that are expected to be furnished are liens and guarantees. And, if the previous records show that you had been playing truant, then it is that much more difficult to get the loan. This is where unsecured business loans come in to the scheme of things. A business cash advance is meant for special circumstances.Unsecured cash advance is meant for a start up and you may be able to apply for a loan up to $50,000. In special cases, it may even be enhanced further. This loan is also known as merchant cash advance and is provided for the purposes of marketing, a re-do of an office, procurement of equipment, and necessary expansions.A credit history that speaks volumes about your repaying habits will, happily, have no reflection on your getting the loan granted. If the lending agency is convinced that you intend to pay back the loan you took, it will look the other way and lend you the money. Business credit scores play no small part in the loans getting past the scrutiny. Before applying then, you must have this aspect of your financial position neatly secured.Co-existence of personal and business credit together in the records is a sure way of getting your loan application rejected even in the initial stage. The two are never to be mixed. And, this precludes the use of social security number having anything to do with the loan applications. Small Business Financial Exchange is the authority that has the power to give credit scores and the credit scores are the main yardstick that lending agencies go by. How the SBFE does get the information? It gets it from the small lines of credit papers that are sent to it.Short term loans are usually given without giving the once-over and that means you are expected to return the loan amount when you can get hold of funds to do it. On the other hand, long-term loans are given with a more flexible repayment schedule. It is only to be expected that these loans are taken for long-term use and the returns will take that much time to accrue to the borrower. It follows that the he will repay only in long-term. The advantage here is that he is not forced to follow a strict repayment routine. The amount of repayment is not fixed and so is the date of repayment not fixed in the case of these small business loans.The U.S. government comes into play in these loan schemes with a consciousness that small businesses are perhaps more important than big business to stay afloat. It has an organization exclusively for the small businesses welfare. The SBFE, among other things, looks after the small businesses’ needs to get unsecured loans. It does not lend the money itself but many agencies have tie-ups with it to facilitate the small businesses take loans from them. The unsecured business loans are an area it especially takes a keen interest in.