J
Jesoos
Member
Hi
I am not sure I understand the exact difference between the following methods of financing (i.e. set aside monies to pay for the benefits)
1. PAYG vs. Paying an amount when the benefit event happens - Both these methods pay when the event happens, right? But what is the exact difference between them?
2. Funding in advance vs. Regular payment building up a fund - Is the full amount for the expected benefit set aside at the start in the "Funding in advance option", while the regular payments is paid into a scheme/fund to build up over time?
Thanks!
I am not sure I understand the exact difference between the following methods of financing (i.e. set aside monies to pay for the benefits)
1. PAYG vs. Paying an amount when the benefit event happens - Both these methods pay when the event happens, right? But what is the exact difference between them?
2. Funding in advance vs. Regular payment building up a fund - Is the full amount for the expected benefit set aside at the start in the "Funding in advance option", while the regular payments is paid into a scheme/fund to build up over time?
Thanks!