Top 5 Benefits of Bonds Insurance

Top 5 Benefits of Bonds Insurance

You might have occasionally heard certain co-workers crowding around the water cooler and talking about a hot tip on stocks. You will rarely hear the same things with the same excited chatter about the bonds insurance. Bonds are generally regarded as boring. It is said that tracking bonds is about as exciting as watching paint dry. On the other hand, stock watchers can become as excited as the NFL fans during a Super Bowl.

Regardless, you must not allow the hype to mislead you. Bonds might be less exciting, yet they are an important part of any diversified investment portfolio. Following are some of the top benefits of bonds insurance;

1. Bonds are often less volatile than stocks. Consequently, they are less risky in terms of potential loss. If the bonds insurance is held to maturity, they can offer stable and consistent returns from the investment.

2. The interest rate on bonds is usually higher than the savings rate offered by the banks. It also exceeds the savings rates offered by CDs, and even in money market accounts. This makes the returns from bonds insurance significantly higher.

3. Bonds typically perform well whenever stocks are seen to be declining. As the interest rates fall from the stocks, it causes the price of bonds insurance to rise in turn.

4. The most prominent difference between bonds and stocks can be summed up in one phrase; Debt vs. Equity. Bonds are representative of the Debt; however, Stocks represent the Equity. As a general rule of investment, it is always better to be investing in debt than in equity.

5. Some people need the security and predictability. Their propensity for taking risks is dampened. Retirees are one such people. Bonds offer means of income generation which is completely secure and predictable.

Types of Bonds Insurance

There are many types of bonds available in the market. The most important among them all are;

Contractor’s Bonds

A Contractors Bonds Insurance is a type of Surety Bonds. It legally protects three different parties involved in a contractor project. Those three parties are; You, The Contractor and The Company responsible for hiring you.

DMV Bonds

DMV Bond is a kind of Permit Surety Bond. It corresponds to automobiles and their respective governmental department. Hence, dealer cannot inflict any harm upon the customer through a fraudulent act. It is possible that the original title of vehicle is lost. It is also possible it was never received in the first place. In such circumstances, the DMV Bond is required.

Court Bonds

Court mandated Bonds is a fixed amount of dollars. As such, it must be paid to the court by the defendant who is charged with a crime. This amount varies with the crime or the financial situation of defendant. In other words, purpose of paying court bond is to ensure defendant would not try to run away from justice.

Fidelity Bonds

Fidelity Bonds Insurance are a way for businesses to safeguard themselves against a dishonest employee’s machinations. This form of insurance provides a protection to the policyholders. As a result, it compensates them for the losses by fraudulent acts of specified individuals.

Miscellaneous Bonds

Companies or professional individuals purchase miscellaneous bonds. They usually need surety bonds for various purposes. These purposes are typically unrelated to legal issues, construction projects or other similar contracted work. As such, most miscellaneous bonds are used to reinforce laws. Such as license and permit regulations.

Get Access to Excellent Bonds Insurance

SG Financial Inc. specializes in maximizing bonding capacity for Bonds Insurance regardless of trade, need or specialty. We have arrangements and agreements with over 35 surety bond carriers. Therefore, we are well equipped to negotiate. We can match each contractor client with the most suitable bonding company.