Insurance Policy Method Homework Help

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What Are the Advantages and Disadvantages of Insurance Policy Method?

In the accounts, you will see that both sides of credits and debits are largely manipulating the profit and loss entries in the ledger. After all, that is what decides the growth or downfall of the organization. But to calculate that one should also understand some important facts like depreciation, taxes paid to Government etc. There are many methods involved in this process. Insurance policy is one of them. Obtain the Insurance Policy Method Homework Help from myhomeworkhelp.com.

What is Insurance policy method?

This is a specific type of depreciation method where the asset is not purchased. Rather than investing the money to buy that item the same amount is used to purchase the insurance policy upon that asset. This way, the organization receives an amount counted as the premium amount for that item from the insurance company.

You will see from Insurance Policy Method Homework Help that by this process a company earns two things at once. First, it is a security deposit made in favor for that item and second, if anything to happen to that asset, there will be money readily paid from the insurance company to replace it. In this case, it should be mentioned that the premium amount is to be paid in advance when that policy is bought.

Advantages of this method:

There are many advantages when someone will try to apply this method to some specific asset. You will find them from Insurance Policy Method Homework Help, they are:

  • There is going to be a fixed amount received when this policy is matured. It is great as there will be no risk involved as when the asset is purchased and sold.
  • The insurance company will pay a proper amount in case of replacing this asset.
  • A lump sum amount is paid to investors for security money.
  • If by chance or accident that asset faces damage then insurance company will provide money to replace it.

What should you find it disadvantageous?

When you will study with Insurance Policy Method Assignment Help, you will face some stages where this policy will prove to have flaws. They are:

  • This policy is not at all a good decision when a later and further investment is made on that particular item.
  • There can be huge loss when this policy is surrendered. The reasons don’t matter as this is counted as profit to the insurance company.
  • This policy is not found cheap. That is also part of schemes found with any insurance company.

These should be made clear with proper examples and then explaining them step by step. You will find Insurance Policy Method Assignment Help a good guide in this case. We are ready to help you 24×7 hours with best possible services. Come find us at our official website called myhomeworkhelp.com.

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