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The phrase “BUY TERM AND INVEST THE DIFFERENCE” evolves around the concept of term life policy which is a basic protection policy and the endowment/ whole life policy which has protection and investment/saving features. To put it simply, the phrase means that instead of taking up the endowment/whole life policy, an individual should buy a term policy for protection and the difference between the premiums of the two policies is to be invested by the individual himself to earn some dividend on the investment.

To agree with the phrase “Buy Term and Invest the Difference”, one need to have the conviction and will-power to invest the difference in the premium in an investment vehicle that can pay a return higher than that declared by an insurance company. Unfortunately, most of us do not have the capability to achieve the desired return over time. At times, one is lucky to reap a good return from the equity market but this is all short-lived when the downturn occurs, all gains will be wiped out and may even heavy losses.

However, investment-linked life insurance have been pioneered and offered for sale by insurance companies around the world as one way where it is possible to have both protection and investment at the same time. In the United States of America, investment-linked life insurance is known as “variable life insurance”. It was pioneered by the Equitable Life Assurance Society and was offered for sale in 1976. This type of product is recommended if one agrees with the phrase “Buy Term and Invest the Difference”.

Investment-linked life insurance policies offer more flexibility to the policy owners and they can choose when to top up or how much, or on what portion of their policy that is linked directly to investment performance. Considering the wide range of investment tools available, investment-linked insurance products may be linked to stocks and shares, property or real estate, cash deposits, fixed income securities, government bonds, corporate bonds, unit trusts, investment trusts, other life insurance and annuities. Investment-linked funds have been created to suit the client’s various investment objectives, risk-reward profiles and investment preferences.

With several insurers offering a variety of investment-linked insurance products, it is now possible for an insurance policy holder to enjoy protection and at the same time to invest solely in one fund or a combination of funds, subject to certain limitations, such as a minimum of 20% of his investment in each fund selected. An insurance policy holder may switch his investment between funds when his investment objectives change.

As an example, an Income Fund which is managed by a company’s in-house fixed-income investment team comprising individuals with more than 20 years of experience in the financial sector. This fund is suitable for policy owners seeking stability of principal and a higher return compared to bank deposits but with acceptable risk to capital invested. The fund is principally invested in fixed-income securities, treasury products, money market instruments, collective investment schemes, and any other permissible instruments or investments prescribed by the relevant regulatory bodies to provide a steady return to policy owners through accumulation of capital over the long-term.

Without the existence of investment-linked products, one may disagree with the phrase and may not “buy term and invest the difference” but instead to take up a traditional participating life insurance product that provides life protection with an element for investment. The premium may be higher but it leads to wealth creation for the future.

YS Koh is an independent Certified Financial Planner and a licensed financial investment broker by practice. She writes often and provides insights and viewpoints for her blog “Life Insurance Information Portal” (http://get-term-life-insurance-info.blogspot.com)

This Life Insurance Information Portal is designed to provide you with unbiased information and useful tips, free from http://www.get-term-life-insurance.info

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Purchasing a renter’s insurance policy is of paramount importance as this covers damage and destruction of the tenant’s personal assets and valuables. In most cases, the policy charges are minimal as compared to homeowners insurance. However, this does not imply that a tenant should invest in the first quote he receives.

Tenants should be aware that quotes received are not completely accurate. These estimates only allow tenants to understand how the system works and may at times be helpful in providing an approximation of costs. After the verification process, the actual insurance rates are always more costly than estimates.

An effective method to receive competitive and economic quotes is to allow several insurance companies to compete with each other. Providing an insurance policy is a profitable business. Hence, all companies go the extra mile to acquire a new client. All companies provide online renter’s insurance quotes. A tenant may also obtain quotes by talking to a customer care representative or a local insurance agent.

While applying for a quote, there are certain details that are required. A tenant will have to provide his physical address and contact number. Details of the size, construction year, major renovation years and value of the property is also asked for. Other enquiries relate to existing property accessories, which include major electrical appliances, and furniture.

Tenants have to furnish details regarding fireplaces and pets and have detailed documentation of individual possessions. Depending upon the number of valuables and location of the house, i.e., whether the house is in a high crime location, quotes will vary. It is also important for a tenant to understand that quotes will differ depending upon the type of accommodation. A single apartment, connected unit apartments and single-family homes will provide different renters’ insurance quotes.

Renters Insurance provides detailed information on Renters Insurance, Renters Insurance Quotes, Home Renters Insurance, Renters Insurance Rate and more. Renters Insurance is affiliated with Rental Property Insurance.

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Many renters do not realize they have so much to lose, whether it is personal belongings or financial loss due to legal liability. If you do not already have renters insurance, you may question its importance and the coverage it provides. Check out some common questions and answers below. You might be surprised to learn just how much you risk losing without proper insurance for both your personal liability and your personal belongings.

Q: Why would I need a renters insurance policy if my landlord carries insurance?

A: The insurance your landlord carries covers the building structure, but does not cover your personal belongingsyour furniture, wardrobe, appliances, televisionanything that you’ve moved into the building. You need a renters policy to cover your personal possessions.

Q: Just what is covered by renters insurance? (Also known as “insured Peril”)

A: A covered peril is a cause of loss for which a renters insurance policy will provide protection. Insured losses include theft, fire, smoke, lightning, explosion, riot, vandalism, hail, and water damage from plumbing.

Q: What are the odds of my home/apartment/condo being burglarized?

A: Chances of a burglary in your home are greater than you think. In fact, a burglary occurs about every ten seconds. According to recent FBI statistics, two of every three burglaries occur in homes, condos, or apartments with an average loss of $1,004 per residence!

Q: Renters insurance covers theft in the home. What if I’m held-up while away from my home, or if I’m a pickpocket victim?

A: Renters Insurance can provide coverage form theft whether it occurs at home or away from home. This coverage includes protection against loss from robbery, pickpocket theft..Even credit card loss, forged checks or counterfeit money.

Q: If my video cassette recorder of stereo were stolen, would my renters insurance provide coverage to buy a new one?

A: The Personal Property Replacement Cost Option in a Renters Policy assures you that most of your covered property will be repaired or replaced without deduction for depreciation. For example: if stolen they above mentioned items will be replace with Brand new items.

Q: What is the difference between an ACV (actual cash value) and Replacement cost policies?

A: ACV policies are cheaper because they take into account the age of the item that is lost or destroyed. For Example: a 5 year old Stereo is stolen. An ACV policy will only reimburse you the value of a 5 year old stereo! (Maybe $100 if you’re lucky!) A replacement policy says go buy a NEW Stereo of like Brand, quality, features as the one that was stolen and we’ll give you the money to buy it brand new!

Q: What if my child accidentally breaks a neighbor’s window?

A: A renters policy covers property damage caused by you or your family members (up to the policy limits.) This family coverage is automatic in most renters policies.

Q: How can I determine how much insurance I need?

A: Add up the dollar value of everything you own in your home. Clothing, furniture, television, stereo equipment, computers, kitchen utensils, etc. What would it cost Brand New if you had to replace everything? Most companies have a calculator to help you get in the ball park, but ultimately, it is your responsibility to determine how much you need.

Finally: As a Renter, you face many of the same risks as a homeowner. Some renter’s think they can never be sued as they don’t Own the property. What if you are out playing golf or softball with friends and someone gets hit with a ball? (either bodily injury and/or property damage) The liability of a renters policy will defend you and pay any damages up to the limit that you choose.

Shopping around for the right renters insurance policy is a smart investment of your time and purchasing a good policy is a smart use of your money. Online services (yes, like ours at HometownQuotes.Com) have made the process easier than ever, so rather you use our service or someone else, start shopping today…you made need it sooner than we hope you do.

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and attended Middle Tennessee State University. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com

Tags:insurance,car insurance.life insurance insurance quotes, renters insurance, renters insurance quotes, apartment insurance

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