i have not been busy

i have just NOT had any access to a PC for the longest time. so sorry about that.

anywho, i wanted to talk a little bit about paying premiums.

a while back i spoke about how i needed to hit some targets in order to receive allowances from my company. i still haven't hit them yet.

the criteria for hitting these targets is the amount of commission you would received for the plans that you sell. in that particular month ONLY.

but what's interesting is that i WOULD have hit my targets, if the plans' premium payments were annualized.

there are actually quite a number of choices when it comes to premium payment (monthly, semi-annually, quarterly, annually) so it really depends on the client's perspectives.

many people in their 20s to 30s still have to master their cash flow and build up their savings in their bank accounts. if their bank accounts are anything like mine, any extra in there, quickly gets spent on SOMETHING. i really don't know what, but SOMETHING. therefore, it's always more practical to look at a monthly deductible premium.

as they get older and savings start to build up, people can START to consider paying bigger amounts, and consequently look at paying at the less frequent modes in order to save money. paying by a less frequent mode means that administrative costs are lowered - i.e. instead of processing 12 times a year, it's reduced to once. and also that the company is able to utilize the whole amount quicker to the benefit of the value of the policy. savings are hence transferred also to the client.

but it doesn't matter which way you choose really, as long as you are able to monitor how much you are spending on your insurance. and the golden rule is 10 - 20% depending on how flexi your income and how important you think insurance is.

keep in mind how much insurance you buy over the years and try to fix the premium deductions together. it will help you to monitor your expenditure and also make it easier for you to decide if you an afford to pick up more plans.

be savy with your money!
Jessica