Besides seeking to insure yourself before investing, young individuals (just starting out in their careers) may seek financial advisers to set up a retirement program. However, we will often be presented a few products which may seem complex and daunting due to the thick pages and jargon. Hence to help readers understand some of these common products, this article will seek to do a basic explanation and define how they work. As this article uses examples of death, I will like to warn of the post’s bluntness which may offend readers.
The Different Products
Term, whole and endowment are the most common products recommended by financial advisers for our retirement planning. So let me illustrate them with a simple matrix.
|
Product |
Provides funds to dependents fordeath during coverage |
Term of Coverage |
Does it have an Investment component? |
When are the investments paid? |
|
Term |
Yes |
Typically 5 to 40 years |
No |
Not applicable |
|
... |
