Different Avenues of Investments

In the modern financial system there are so many investment avenues to choose from today in financial market and it has become difficult for anyone to decide about these avenues. Some of these investment avenues offer attractive returns but with high risks and some offer lower returns with very low risks. An overall analysis of these investment avenues with risk and return trade is presented in this article. These investment avenues are:

Introduction to the Basics of Life Insurance

Life insurance is a financial tool that has been made to protect you from any risk of uncertain events that can result into losses for you. This loss may be loss of life or loss of health or opportunity to earn money or loss of salary. A life insurance product cannot protect you from risks such as accidents or any kind of events but it can help you to come out of the problem by extending some financial helps.

Concept of Insurance

Risk and uncertainty are incidental to life. Man may meet an untimely death; he may suffer from accident, destruction of property, fire, sea perils, floods, earthquakes and other natural calamities. Whenever there is uncertainty, there is risk as well as insecurity. It is necessary to provide against such risks to save the people from such sudden setbacks or devastating effects in one’s life. From this emerges the concept of insurance. Insurance does not avert or eliminate loss arising from uncertain events; it only spreads the loss over a larger number of people who insure themselves against the risk. The main principle underlying insurance is the pooling of risks. It is thus a co-operative device to spread the loss caused by a risk over a large number of persons who are also exposed to the same risk and insure themselves against that risk.