The humorous side of insurance.

Humorous Insurance Smiley

Insurers  smarter than lawyers!!!

A story is told of a lawyer who bought a box of vintage cigars and had them insured against fire and theft. He then, over the next few months, smoked all of the cigars and claimed that the cigars caught fire. Definitely the insurance company refused to pay. The lawyer took them to court and eventually won $12,000 at the court case.

Soon after, the insurance company took the lawyer to court and charged him with 24 counts of arson!!!

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Understanding Annuities

Charles Dickens – “Buy an annuity cheap, and make your life interesting to yourself and everybody else that watches the speculation.”

An annuity is a financial product designed to turn monetary assets into a regular stream of income payable, immediately or in the future

Annuities are primarily used as a means of securing a steady cash flow for an individual in their sunset years.

Which Annuity suits me best?

There are two main categories of annuities; immediate annuity or deferred annuity

An immediate annuity provides a stream of payments immediately upon purchase. It

acts like your personal pension providing income over a specified period of time, or for the rest of your life, depending on the terms of the contract.

A deferred annuityonthe other hand, provides a regular stream of payments at a predetermined time in future. An individual may start funding for his annuity years before receiving the regular stream of income. Funding your annuity in a registered retirement scheme allows you to enjoy tax relief on your contributions to the prescribed limits of Kshs. 20,000 per month or Kshs. 240,000 per annum.

The above defined annuities can either be fixed, variable or indexed

A fixed annuity provides a guaranteed rate of interest on your contribution for a specified period of time. With this annuity your principal is guaranteed and cannot be eroded by market risk.

A variable annuity is a savings vehicle whose returns are pegged on the performance of the underlying investment portfolio. With this annuity your principal is exposed directly to market risk. This means you investment is exposed to the prevailing market fluctuations.

An indexed annuity is a hybrid with characteristics of both the fixed and variable annuities. It has characteristic the fixed annuity by guaranteeing interest is and there is no erosion of the principal amount and variable because there is a potential to participate in market gains; without exposing your principal to market risk. Some of the features that are available in fixed index annuities are bonuses, various crediting methods, and allocation options that give you choices for your money.

Choose your annuity

 

Each of these annuities, depending on your particular situation can be right for you. Now that you have a better understanding what an annuity is, you can evaluate your circumstances and choose the one best suited for your purchase. If you aren’t sure which one is for you, feel free to contact UAP Life on 0711 065 300.

What are your comments on understanding annuities? Comment:


Increasing your disposable income

Money Talks… But all mine ever says is goodbye

12 ways to Increase your disposable income

  1. Get a raise or a second job.
  2. Invest your income.
  3. Spend less.
  4. Start a business.
  5. Get clever: reduce the taxes you pay.
  6. Try to avoid eating out as much as possible.
  7. Take a snack lunch to work.
  8. Try to drive less and carpool to work if possible.
  9. Buy generic products.
  10. Take fewer trips to the grocery store.
  11. Know the difference between want and need. You don’t need a 52-inch plasma screen TV or the holiday in South Africa; you want them. What you need is a roof over your head and food to eat. Know the difference.
  12. Reduce your cable bill. Determine how much time you really spend watching some of the premium channels such as MNEt and Discovery Channel and if you can drop the top tier of channels.

In what ways are you trying to increase your disposable incomes? What are your hindrances?  : Share your comments