Personal Finance Company

EconomyWatch
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Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.


A personal finance company is a financial institution that acts as an intermediary providing personal financial services to its clients.

Personal finance company like Prudential, Merill Lynch etc help individuals to grow and protect their wealth in the process.

The services provided by Personal finance company may be listed as under:

  • Life insurance: To secure one’s future finances, the best way out is to opt for a life insurance program. There are various life insurance products that are offered by the financial companies and they are:

    1. Term Life Insurance: this is offered by the personal finance company to cover only specific needs.
    2. Permanent Life Insurance: The permanent life insurance policies offer lifetime protection. The following are the permanent life insurance policies offered by the personal finance companies.

    Universal Life Insurance: This is characterized by a flexible premium structure and a death benefit protection.

    Variable Life Insurance: In this case the person who is insured has the option of choosing a death benefit option and the potential to accumulate non-guaranteed tax deferred cash value whose value is a function of the underlying investment option.

    Survivorship Life Insurance: This basically insures two persons and the death benefit are obtained after both have died.

  • Whole Life Insurance: In this case, the person who is insured has the advantage of knowing what his premium will be every year. Accordingly he can accumulate his non-guaranteed deferred cash value.
  • Long Term Care Insurance: It is a well-known fact that long-term care is very expensive. Hence it is of top priority to opt for long term Care Insurance.
  • Annuities: Four different kinds of annuities are generally offered. They are chosen according to personal needs.

    1. Variable annuities: With variable annuities, one can plan for investment for a number of investment options, professional portfolio management, income options, tax deferrals and death benefits. Variable annuities have the capacity to adjust for inflation in such cases.
    2. Fixed Annuities: The fixed annuity scheme allows conservative investors to grow their finances at a slow and steady pace at a fixed rate of interest with a tax deferral.
    3. Immediate Income Annuities: Here only by making a single purchase payment annuity payments can be received. One has the liberty to choose the payout period along with a lifetime income.
    4. Modified Guaranteed Annuities: This provides tax-deferred earnings together with long-term fixed-rate options.

  • Investments: To achieve both long and short-term financial goals one needs proper investment advice, which are provided by the personal finance company. The following are the potential investment options:

    1. Mutual Funds
    2. Teaming up with an experienced financial professional

    One should attain educational information regarding the investment option before investing.

    • Managed Money: The Managed Money Program can help in balancing an uneven portfolio. The Money Management Program also considers wider issues like long-term goals, risk tolerance and total portfolio strategy.
    • Retirement Accounts: For a secure retirement the personal finance company offers professional investment management support to help to attain retirement goals. The online tools also efficiently manage the retirement plan account.
    • Real Estate: To fulfill the dream of being a homeowner it is mandatory to consult a very reliable personal finance company that employs trustworthy professionals. One can also consult the personal finance company to search for a suitable home. The personal finance companies offer quality service to the homebuyers and sellers.

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