General insurance The truth about investing and insurance policy

[Deleted member 13140]

They no such thing as investing in insurance..
I think investing is investing and insuring is just insuring.

The goal of investing is to put your money and savings into a financial vehicle that will in time grow and multiply your money

The goal of insurance basically protection, Right? And that is to say it is risk mitigation against unforseen occurrences that might have impact on your well being or family or financial security.
Or even your assest though am not sure about that.

Both of them play a role in everyone's financial planning or business planning and they aren't the same so you can't replace one with the other

And according to a book I read, they is this statement I saw it said most insurance policies will not compensate you for inflation, basically because that's not what they are designed to do.

If you really want to grow your money invest and I'm financial assets like bills, bonds, mutual funds, stocks and so on

 

[Lens1000]

It's true that investment and insurance are two different things entirely. In investment, you would put your money to work with the sole aim of making profit. No financial investors would invest in a venture that does not brings profit. An establishment that isn't profit oriented is not worth a business, rather it's a charity organisation. Insurance is simple put, transferring the risk to business to another agency.

 

[Phabbyfundz]

Investment and insurance policies are a really vital part of being a really successful man or woman in whatever sphere or phase of life you find your self. In the secrets of money or wealth you have multiplication and how do you multiply wealth or money,without proper investment , you have to make investments the first income should be invested to yield more.
Furthermore I know no one wishers to a misfortune but insurance policy helps you bounce back In case those misfortune happens.

 

[Jamoflondon]

I’m not disputing the fact you are trying to make in your post but If we take a look at it from another angle, we can still say that insurance can be termed as investment, for example, someone that bought a short term life insurance and eventually got the compensation, it’s just like saving up money and still earn profit on it

 

[btaliat]

Insurance and investment to me are just too different. While one is trying to allow your money to grow, other so trying to protect you against any risk thay may happen to you in the course of doing your business or even your investment. So I don't see any resemblance on how they both work.

 

[Mandy96]

I think you have a valid point. Most people do think insurance is an investments I do tell people that if you want to invest, just buy shares in one of the big successful companies instead of going for the otherwise. The reason why I don’t consider it as an investment is because you don’t always get back your profits as money, some do come as compensations

 

[Wisdom01]

I really don't understand that part of insurance companies not compensating for inflation's and others , because most times premium are paid on current basis and if inflation is happening it's going to affect both parties , well investing is different from insuring , insuring have more risk attached as you get compensated for what you insured against only

 

[btaliat]

There is some instances polices that serve as investment. No one is saying investment and insurance is the same. But that does not mean that we can not say their similarities. For instance, term life insurance is more or less like an investment. It works just like investment because you will get all your money back.

 

[sincerem]

To be candid with you, insurance is also part of investment. The reason why you're investing your funds into insurance is it not for benefits? If you invest in other business and their is no benefit in it, will you invest? The essence of investment is simply profit, any one who won't get a profit for an investment won't opt in for it.

 

[Phabbyfundz]

In my opinion I would say getting an insurance policy is a direct form of investment. But before we can make any further contribution we have to first understand the two terms in play here which are investment and insurance.
Firstly what is insurance? Insurance serves as a means of indemnity against a future occurrence of uncertain events while investment is a placement of capital in expectation of deriving income or profit from its use. The two involved a placement of capital which you in turn would expect a form of benefits from them be it long term short term.

 

[Mika]

I will differ on this point of view. Investing means you put money on something in a hope that it will give you profits. You buy an insurance policy and you get financial coverage against your purchase in case something unwanted happens. Isn't this investment (you are getting a return on your investment)?

 

[Chibson]

Definitely there is a clear difference between insurance and investment because when you insure your properties you're not expecting a higher return but just making sure that your property or your money is not lost. investment on the other hand is putting your money on something which will definitely increased its value.

 

[btaliat]

If we are to assume that insurance is not investment which I don't even subscribe to in the first instance, insurance is best dope for investment because without the investment there is chance of losing all the revenue that one is even expected to generate from the investment that one is into.