Like diamonds, inflation is forever !

Like diamonds, inflation is forever. Many people are good at working out that a 10% return on an investment is much more valuable when inflation is running at 3% than at 9%, but forget about the corresponding effect on life cover.

Of course, thanks to the economic good sense of Gordon Brown/Alan Greenspan/Norman Lamont, inflation these days is only around the 3% mark and can easily be forgotten about. The price of most goods hardly seems to change much these days.

The problem is that even 3% per year adds up. After 20 years something which costs £100,000 now would cost almost £200,000 - i.e. would nearly double in price. Correspondingly, this means £100,000 of life cover would only be worth half as much in real terms for your family if you died in 20 years time.

To cater for this most insurers offer an "increasing" feature on their life cover policies. Unsurprisingly, the amount paid out is linked either to inflation, or to average earnings. The problem is that the premiums you have to pay also increase each year - sometimes by more than the rate of inflation.

In other words, when taking out life cover you should consider the effects of inflation and either be prepared to pay for increasing cover, or more generally review your cover on a regular basis to make sure that you still have as much as you need.

«De Beers has boosted rough diamond prices by 16 percent so far this year due to strong demand, the firm said on Tuesday» - Please look my blod «Diamonds is best investment and capital !».

Conclusion: Diamonds is best investment and capital !.

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Everyone can start to collect diamonds. How?

Write me to a_zaveryukha@yahoo.com. Please in subject write - Diamond.

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To Friendship and Success,

Anatoly

Independent Diamond Trader

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