General insurance Similarities between investment and insurance

[Phabbyfundz]

Many haven't yet understood the similarities between investment and acquiring insurance plans. Before i proceed I would like to first state that meaning if the two terms in play here which are investment and insurance.
What are investment? Investment is the placement of capital in expectation of deriving income or profit from its use.
While insurance is a means of indemnity against a future occurrence of uncertain events. From the two terms we see that both investment and insurance policies needs capital which is put in place to cover for future or present need that yeilfs profits or benefits as the case may be.
Investment are done to yield profits and insurance money are placed to cover in times of need of as a form of investment and both help to keep the person Inca balance state of financial stability and freedom.

 

[Chibson]

Insurance and investment have some similarities in which some people do not know yet. Investment you are putting your money on something and expecting a higher return while, insurance you are also putting your money on something and it is protecting you for any losses. Insurance you may not necessary expect a higher return.

 

[btaliat]

Investment should not be considered as insurance but insurance can be seen as investment. Anything that is capable of yielding returnes is termed investment. And since some insurance policies requires compensation, then it can be seen as an investment. But the aim and mission of the two are just clearly different.

 

[Mandy96]

Like I said in my previous post. Insurance can partially be called an investment because the money you paying as a premium payment is appreciating one way or the other and this is what investing is really all about. An interest is being added to the original worth of the plan bought