Two Insurance Products you Never Knew Existed
According to recent research conducted by the Association of British Insurers (ABI), financial service providers in the UK are now paying out a staggering £187 million each day to claimants. This represents a huge sum of money, while it also offers a fascinating insight into the diverse and often complex nature of the insurance industry and its individual products. There are a host of insurance products that the majority of consumers are entirely unaware of, for example, despite the fact they have the capacity to save you money if they are used correctly.
With this in mind, what are these obscure products and how can they benefit consumers? Consider the following examples: -
The Cash Value of a Life Insurance Policy
While a life insurance policy can be invaluable to your loved ones in the event of your passing, they can also deliver considerable benefits in your lifetime. This is because insurance has many similarities with investment, which in turn means that you can use the value held within specific policies to create separate and independent sources of wealth. Take the cash value of a life insurance policy, for example, which can be kept safe from the threat of bankruptcy and also offer protection should you ever face a lawsuit.
Your Life Insurance Policy as a Private Bank
On a similar note, your life insurance policy can also be used as a private bank to supply funds and manage investments. Not only does this provide significant tax benefits and enable you to maximise the gains from your investment portfolio, but it also offers you access to the cash value of your life insurance policy. By overfunding the policy and generating an inflated cash value in your life insurance policy, you can access interest rates of 5% and use this for additional investments or personal use.
The Last Word
While these insurance products may be relatively obscure within a complicated market, they have the potential to deliver significant benefits to customers. The nature of these products also underlines the importance of consumer knowledge, as you must have a broad understanding of insurance and financial services if you are to obtain the best possible deals. To find out more about the various services and financial products that contemporary issuers offer, visit the Sky Insurance website at your earliest convenience.