What Are The Advantages And Disadvantages Of The Term Life Insurance?

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Answer: Budgeting and personal financial goal go hand in hand to assist you in being financially prosperous now and in future. However, they have key differences. Budgeting process helps you plan out you important expenses in the coming weeks and months but they do not help you plan for your financial goals and the funds needed for it in 5, 10, 20 years to come. Financial plans helps you in building a long-term goals which include insurance, estate planning, retirement, education, travel, taxes, etc. while budgeting deals with your day-to-day expenses and managing funds for it. With budgeting, you can figure out the extra amount you have left after your expenses that you can invest towards achieving your goal. Financial planning helps you keep…show more content…
Describe and explain two (2) advantages and two (2) disadvantages of using superannuation to purchase Term Life Insurance. Answer: life insurance purchased within the superannuation has its own pros and cons. Here are a few of them: Advantages: a) Buying superannuation funds in bulk can make the insurance cheaper. b) A basic level of cover is provided by these insurance without a medical exam. c) These insurance often provide income protection and total and permanent disability insurance (TPD). Disadvantage: a) The amount of the insurance cover may be not enough as per your requirement. b) Superannuation fund insurance does not cover trauma. c) Less money will be invested back into the fund, if the superannuation fund pays the premium to the insurance. This in turn will mean less amount of money available at retirement from your fund. 3) Distinguish between direct and indirect superannuation fees. In the longer term which fees are likely to have the most impact on the amount accumulated and what can the individual do to minimize this? Answer: The difference between the direct and indirect fees in superannuation are as

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