If you purchase a bond, the company who sold it to you is essentially in debt. They owe you the price of the bond (this is known as the principle), plus whatever interest that bond has earned (this is usually paid out at a fixed rate). Premiums are generally based on the percent risk that the company will default on the loan. Bonds can be a great way to generate capital over a long period of time. However, if the company you purchased bonds from goes bankrupt or defaults on your loan, you are out of luck. The money you invested into the bond is lost. Here at Paradiso Insurance in Stafford Springs, Connecticut, we want to make bond buying a safe and worry free process. We will find you the best company to meet your needs and work with them to ensure your happiness. When we finally find your company and issue your policy, your bonds will be covered in case of a default. For more information, visit Chris Paradiso at Paradiso Insurance or visit our website.
– The Paradiso Team