In the insurance sector most common insurance is of human life. Life insurance is a bond between the policy owner and the insurer, where the person insured agrees to pay some selected recipient a sum of money. It happens upon the incidence of death or other event, such as deadly illness of the insured person. In return, the policy owner agrees to pay an amount at regular intervals or in lump sums according to insurer’s choice or feasibility.
An annuity is a monetary contract in the form of an insurance commodity according to which a financial organization becomes liable to pay periodic future payments to a buyer in other words annuitant in exchange for the immediate payment of a lump sum or single-payment annuity or a series of regular payments. Annuities can be purchased to endow with earnings during retirement. They work like a traditional corporate pension plan, paying out a regular amount of money over the course of retirement.
A financial planning can be estimation, a plan for spending and saving future income. A financial planning can also be an investment planning, which assigns savings to varied assets for future income, such as a new business or product line, shares in an existing business, or real estate. Financial services are usually services offered by the finance industries or organizations that deal with the flow of money. Among these organizations are banks, credit card companies, insurance companies, stock brokerages, etc.
Retirement is the start of a new life, like second childhood. Effective retirement planning requires predicting the type of life a person wishes to lead after retirement. Today’s employment scenario has changed. This is the age of early retirement, which is often due to health hazards or zero earnings, which means a shorter working career and longer retirement as compared to the earlier generation.
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