Where does debt come from?
Gail is known for saying that debt is a factor of lots of little purchases compared to lots of large ones. I found this nice photographic brake down of how Canadian’s spend there way into debt and thought it was worth sharing.
In case you were wondering I didn’t write my test yesterday. My Company didn’t want me to… there’s a large story behind it but what it comes down to is the left hand of my dptm not knowing what the right hand was doing. I now write June 1st. I am not sure if the time lag is a good thing or a bad thing. But what I have decided is to share with you all my new found/ studied knowledge. Starting today I will be writing a series for the next little while on different aspects of insurance and taxes. Given that I live in Canada all of the figures and formulas will be based on Canadian insurance and taxation rules. However the basic principles of insurance are world wide.
What is Insurance, an Insurance Advisor and The basics of a Contact?
Insurance comes in all shapes and forms, be it travel insurance, car insurance, life, property or business insurance. The idea of insurance is to minimise or spread the risk. There are two measures of risk: severity and frequently. The more severe the even the less likely it is to happen. However the most sever risks are often the most costly to the individual.
As an individual you are most likely to experience risks associated with:
1) Loss of income during the period of family obligations
2) Loss of wealth
3) Inadequate retirement planning
4) Financial inadequacy of estate
To help ease the financial burden associated with these kinds of risks, individuals buy insurance. To help you with the process of buying insurance you turn to an insurance advisory whether it’s over the phone or in person.
An insurance adviser is a fiduciary, like your doctor this person is expected to protect the information you share with them and keep it confidential. This is someone you put your trust into to recommend a product(s) that best suite your needs.
Tomorrow will be the basics of a contract and what kinds of life insurance are available.