Life Insurance- financial security in the event of your death, vocabulary: Policy, the insurance contract that contains that legally enforcable agreement between the insurer and the insured. Premium, the amount of money the insured pays the insurer for the policy, normally made monthly, semi anually or anually.
Types of insurance: Term Insurance it is purchased for a fixed and limited number of years usually 1,5,10,15 or 20 years. Renewable at end of term, premiums increase because your age increases or other risk factors. If the policy holder dies after the term then the beneficiary receives nothing. Permanent insurance, more than just life insurance protection its also an investing component. Pay more at the start than protection alone.
Whole life insurance: pay premiums for as long as you live
Universal life: choice of how your cash surrender value is invested
Cash surrender value: amount of money accumulated and invested above and beyond the cost of the insurance.
Home owners insurance: Protect you from financial loss, whether you own or rent, in the event of a fire, burglary or storm. Pay deductable if you make a claim. Closed mortgages, open mortgages, convertible mortgages.
Mortgages: loan secured by property, principal the amount of money you borrow, interest the amount of money you pay to borrow. Amortization period, the # of years it will take you to pay off the entire mortgage.
Mortgage spreadsheets:
Initial cost in purchasing a home: down payment, sale closing costs & extras, inspection fees, mortgage application fee, appraisal fee, sales taxes, service charge, legal fees, closing adjustment costs, land transfer tax.
Affordable housing: Gross Debt Service Ratio, should not exceed 32% of your gross income.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment