Two Ways to Protect Your Income

Two Ways To Protect Your Income

1. Term Life Insurance - Rent Your Protection

This is the cheapest form of insurance. It is very similar to renting a home.

  1. You pay rent a home for a set term - typically a year.
  2. You pay a rent for this term, typically every month or quarter.
  3. When the term finishes, you don’t get the rent back, because you lived in the home.
Term Life Insurance

How Term Life Insurance Works

  1. Premiums are cheaper than Whole-Life Insurance.
  2. Pay premiums as long as you are covered.
  3. You don’t get premiums back at the end of the term.
  4. Because you were covered during that time.

2. Whole Life Insurance - Own Your Protection

This is an expensive form of insurance. It is very similar to owning a home.

  1. You pay your mortgage for a set number of years - typically 10-20 years.
  2. You own the home for life once the payments are complete.
  3. You get back some money when you sell the home.

How Whole Life Insurance Works

  1. Premiums are more expensive than Term Life Insurance.
  2. Pay premiums for a fixed term, typically 7-20 years.
  3. You are covered till age 95.
  4. You can get back some money, if you cancel the policy.

About the Author Amit

Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide. He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’. He helps business owners and professionals ‘Create A Second Income’ through investments.

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