a device or implement used to carry out a particular function.
A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.
Life insurance is a form of insurance in which a person makes regular payments to an insurance company, in return for a sum of money to be paid to them after a period of time, or to their family if they die. (But it can be much more than just that!)
An annuity is a contract between you and an insurance company in which you make a lump-sum payment or series of payments and, in return, receive regular disbursements, beginning either immediately or at some point in the future.
One of the most expensive items most people will own and finance in their lifetimes. How you do it can make a big difference in the money you spend.
Insurance of course can provide protection for the ones you love in the event of your death, but did you know it can also provide a structure for you to use as your own bank?
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