Insurance Policy and a Better Alternative for Money

February 27, 2012 by  Filed under: Loans 

Your old refrigerator and computer can be a good source for some money. How would you sell these products? Who would buy them? Ways to market your product need time. Rather than setting up a business, sell your old products to make your time more worthwhile. Simply give calls to several people who have dealings in old products. At least you would be able to clear up space in your house even if u cannot earn much money by selling these used items. You might even consider donating them to charity instead.

Anything you have which you can sell with help of a broker? Should these stocks or bonds be sold? Well everything is dependent on how urgently you need the money. If the interest you have to pay by borrowing money from the bank is less than your investments return income then you would rather use those investments to secure yourself and take a loan from the bank.

Also, do not make the mistake by overlooking your life’s insurance. Here is example about Alex and his insurance policy.

Alex wants to open a shop which repairs cars. He wants to cover insurance for his family. He has a premium insurance worth three hundred thousand dollars. He pays two hundred dollars monthly and this policy is worth one hundred thousand a month. If he wanted, he can borrow one hundred thousand dollars from this insurance company then using that cash for starting a new business. In the case that anything happens to him, he would get three hundred thousand dollars from insurance. This amount would be deducted by one hundred thousand dollars and Alex’s family will then receive two hundred thousand dollars.

Being offered a different policy, Alex can pay the insurance company fifty dollars every month. He would need to extract one hundred thousand dollars if he cashes in his current policy. He then have to lower his outgoing every month by one hundred and fifty dollars. In that case his family are give three hundred thousand dollars should anything happen to him.

Alex should not cancel the old policy first in case anything happens to him. If he plans to get a new insurance policy, conditions in the old policy might cause Alex to be ineligible for his new insurance policy. Furthermore, Alex has to ensure that his policy is not restricted to renewal regardless of his age.

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