Financial planning Essay Example | Topics and Well Written Essays - 250 words - 1

Financial planning - Essay Example Conversely, one can be renewed. There are merits associated with the term policy. First, ones coverage does not end at the 10th year but can still go on as long as you pay the premiums past the 10th year. Secondly, the term policy is convertible with no prove to ones health. In doing so, you are offered a level rate for as long as your lifetime ( Fedorowicz, 1977). A twenty year term is beneficial for squat term protection. In case of untimely death, a huge payout is given out. The premium also pays for a home mortgage ( Fedorowicz, 1977). In case of death the next of kin is given a lump sum of money. Also, this term caters for newly employed youths who are to plan their life (Kaye, 1989). The policy is flexible, and one can renew and convert it from one policy to other policies. Fedorowicz, Z. (1977). Financial planning. Warsaw: Central School of Planning and Statistics in Warsaw, Research Institute for Developing Countries. Financial