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Wednesday, May 23, 2012
new jersey car insurance
Over the years, insurance companies have become major financial institutions with a
considerable amount of assets. In the past, insurance were primarily restricted
to selling only insurance products. However, since 1999, after the passage of the Financial
Modernization Act, insurance co. have been able to expand their product offerings
considerably to include stocks, mutual funds, and other financial products and services.
An important distinction among companies is that they are considered to be either
stock companies or mutual companies. There are a number of distinct differences between
the two types of companies, as well as in how their policy holders are labeled.
A stock company is an insurance that has stockholders. The stockholders in a
stock insurance are able to participate in the gains and losses of the company.
Similar to stockholders in other companies, the stockholders in stock insurance companies
have the right to vote and to elect the board of directors. It is the stock insurance
company's charter that specifies what types of insurance the company will sell. Even in a
stock , however, policyholder interests are ranked ahead of other
shareholder dividends.
Mutual insurance companies are owned by their policyholders. There is no stock available
for purchase on the stock exchange but rather it is the policyholders in mutual insurance
companies who elect the board of directors and the board of directors then appoint the
executives who run the mutual insurance company.
The policyholders in a mutual insurance company may receive dividends or even a reduction
in insurance policy premiums. For example, life insurance companies may pay a dividend if
the mortality experience of policyholders has been better than expected within a given time
period. A nice feature of this is that the dividends are considered to be a return of
policyholders' premiums, and are therefore not considered taxable income.For many years the debate has raged through the life insurance and financial industry as to whether or not buying term and investing "the difference" is really a good financial strategy. Many swear that it is the only way to go. Others debate their logic, stating that it is not, nor never has been a sensible thing for consumers to do.For those who need life insurance coverage, term will give you just that - pure life insurance coverage. And, dollar for dollar, a term policy will provide a much higher death benefit than a whole life policy with the same premium
Residents of New Jersey seeking the best rates on term life insurance should visit
www.MightyTerm.com for quotes, coverage, and additional information.
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