interest income

In U.S., the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation. A combination of low-cost term life insurance and a higher-return tax-efficient retirement account may achieve better investment return.

Saving

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed. See life insurance.In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.

Financial stability

Financial stability and strength of an insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool or other arrangement with less attractive payouts for losses). A number of independent rating agencies, such as Best's, Fitch, Standard & Poor's, and Moody's Investors Service, provide information and rate the financial viability of insurance companies

Insurance or Bima

Let’s be totally honest before we look at what could be the best insurance comparison tool ever, people don’t like buying insurance. Yes it is without doubt one of the most essential purchases a business can make (the recent flooding in the UK has once again highlighted this) but it’s hardly an exciting process is it?You may trawl the internet, fill our numerous forms, make several phone calls and answer the same questions over and over and over again. However this can be long and drawn out process which takes time and costs business owners money. Therefore why aren’t there business insurance comparison tools on every search engine or insurance website?Well the truth is business insurance is a little more complex than buying a CD as believe it or not getting the cheapest price isn’t necessarily the only thing you want. Yes getting the cheapest premium is of course important as nobody likes to pay over the odds but when it comes to business insurance getting other things like the right cover, an affordable excess (or deductable) and help and advice can be just as important.So this leads us onto what could indeed be the best comparison tool over for businesses looking for business insurance. This tool has been around for years and for businesses looking to compare different types of insurance it could save them time and money.Ladies and gentleman could in fact the best insurance comparison tool ever be an insurance broker?Insurance Brokers have been around for years but for businesses who want to compare many different insurance companies and insurance products they could still well be the best tool around.For those insurance brokers who don’t like to be referred to as a tool I’m very sorry but the fact remains they do the same job (plus much more) than any online insurance comparison site.So if you’re a business owner or someone who is responsible for the purchase of business or commercial insurance for your company you really have 3 options when it comes to buying your insurance.You could go direct to an insurance company who will quote their premium or you could go to an insurance broker who isn’t independent and they will quote you a premium from the one insurance company they deal with.Alternatively, you could go to an independent insurance broker to help you with your business insurance. Find a good one and they will search the market to help you find the right insurance cover, the right excess and the right premium. Not only this because they are independent and aren’t tied into using just one insurance company, they can often find you more cover for less money.If you want to compare many different types of business insurance why not take advantage of what could the best insurance comparison tool there is?This article was written by Mark Burdett, Marketing Manager of Northern Counties Insurance Brokers. Mark has over 17 years Marketing experience in the Financial Services industry and has worked on campaigns for companies including Norwich Union, Kia and Zurich.Now based in Newcastle upon Tyne Mark is Marketing Manager for one of the UK's Leading Insurance Brokers - Northern Counties Insurance Brokers.Northern Counties have been providing Business Insurance to businesses since 1928 and can be contacted on 0191 482 1219 for all your Commercial Insurance and Business Insurance needs.Article Source: http://EzineArticles.com/?expert=Mark_R_Burdett