General insurance Banks Vs. Insurance Companies: How Similar Are They?

[kayode10]

I think both banking and insurance were both established based on safety and security of the client. Though their approaches are quite different but they still have common denominator. Bank institutions keeps your money save and other valuable things. While insurance are ready to provide the valuable goods loss due to unforeseen circumstances.

 

[Jasmine]

We use banks for three purposes, to secure our money from theft, to earn interest on deposit, and to get a loan for various purposes. We buy insurance for two purposes, one, to get financial coverage if something bad happens, two, to earn profits on premiums upon the maturity of the insurance policy

You can also get loan against your insurance policy (the total amount of money you paid as premiums will be used as collateral and you can get up to 90 percent loan). So, this brings to the conclusion that you can use banks and insurance company for the same purpose. The only difference I see is you can frequently deposit and withdraw funds from bank, which is not possible from insurance company.

 

[sincerem]

Banks are mainly for saving our treasury asset, I don't see any tangible or useful interest coming from banks, unless we are investing through their share program. Insurance is a better investment for one that has extra funds to invest in any future potential investment return. Insurance brings huge benefits when we never expect it, that's why I prefer investing via insurance than bank.

 

[Augusta]

These are two different entities that carries out two different functions though the both deals with public and their funds. The bank receives and store money for clients, insurance company on the other hand received money as premium to compensate a client in times of need. But the two are profit making organizations

 

[Mika]

Banks collect deposits from people and invest the money on various projects as well as provide loans to people and businesses. Insurance companies collect money from people in the name of premiums and use that money to invest in various projects. Banks and insurance companies operate and make profits in the same way.

We use banks for three purposes, to secure our money from theft, to earn interest on deposit, and to get a loan for various purposes. We buy insurance for two purposes, one, to get financial coverage if something bad happens, two, to earn profits on premiums upon the maturity of the insurance policy

 

[Chibson]

I think banks and insurance companies are not really the same. when you have a deposit with the bank there is no doubt that you will get an interest. Insurance almost the same thing happens but you are surely cover hard in case of your property. Some people may prefer insurance company though.

 

[Jasmine]

Banks collect deposits from people and invest the money on various projects as well as provide loans to people and businesses. Insurance companies collect money from people in the name of premiums and use that money to invest in various projects. Banks and insurance companies operate and make profits in the same way.

 

[KingDaniel]

Banks and insurance companies are both monetary organizations, however they have distinctive plans of action and face various problems. While both are liable to interest rate risk, banks have a greater degree a foundational linkage and are more defenseless to runs by depositors.

 

[Alexandoy]

The big insurance companies here are affiliated or owned by a bank. The main business of the bank is to use the deposited money for investment in negotiable instruments like government bonds. They also lend cash to other banks that are in need. The insurance companies earn from the premium of the insured client. They have computed their advantage based on actuarial formula.

 

[Wisdom01]

Although the insurance companies are not just collecting money from the premium buyers , they would still have to cover risks and others after doing so , they are truly profit making business that's why they invest in business after collecting the premium , so they could get more profit to cover risk

 

[Mika]

Insurance companies work almost similarly to banks. Banks collect money from the depositors and give them some interest on their deposits. The banks then lend the money collected from depositors to the burrower for a higher interest. The difference between the interest they give to the depositor and the interest they charge to the burrower is their profits, and there is really huge gap between these two different interest rates.

Insurance companies, on the other hand, collect money from the insurance buyers in the name of premiums, make these insurance buyers pay the premiums for many years, and in the meantime invest the money in big projects. Insurance companies are not giving free money to the insurance buyers, in fact, they are collecting money from insurance buyers and investing in profit-generating projects. Insurance companies are also investment companies. They are not established as a non-profit organization; in fact, they are here for making profits.

 

[Mandy96]

I think The similarities between the two companies is the fact that they both help and assure their clients a total safety what was put in care of them. If you notice, the main job of banks is to help you save your money or properties, while the main job of insurance companies is to help you save your premium in due time

 

[Jamoflondon]

I think the main similarity between banks and insurance companies is the fact that they both help you save either your money or assets, although they operate differently but we can still say they both provide some kind of assurance or coverage for your money or properties. And I think they both act friendly to make money from their clients

 

[Mika]

In my home country, some banks are working alongside insurance companies. These banks are helping you to secure an insurance policy without you having to pay the premiums (the bank will pay on your behalf, without charging extra money). This is one of the tactics to lure customers to have accounts in the bank.

 

[btaliat]

It is true that you can easily withdraw your money from Bank anytime you want, but we are talking more about how profitable this two are and I believe that insurance companies are of more beneficial to individuals than banks are because banks only offer a small reward in the name of interest per annum.

I know understand your points. The poster even talked more about their benefit a customer tends to gain from these two financial institutions. You are right with the way banks operate. Even in saving account, they don't really give interest to their customers while insurance companies can be banked upon especially when there is time of trouble.

 

[Setho]

When you compare the work that the both of them do they are actually very similar in the way they operate. This is the reason why banks are mostly doubling down as insurance companies around here. This is because it will be very easier for a customer to enrol with them than opening another separate account with a private insurance company.

 

[Bookwormlux]

You are right but you may be very right if the account one is keeping with banks is fixed account. Aside this, I may want to differ with you in the sense that the person that is banking with a bank has every choice to withdraw all his money in time of trouble because no finicial law stops him from doing so.

It is true that you can easily withdraw your money from Bank anytime you want, but we are talking more about how profitable this two are and I believe that insurance companies are of more beneficial to individuals than banks are because banks only offer a small reward in the name of interest per annum.

 

[btaliat]

Insurance companies are more preferable than Banks. I am saying this because insurance companies are going to come through whenever we get into some die minutes needs that will need financial intervention online banks that only give us a little percentage per annum as interest which is very low compared to what we gain from insurance companies.

You are right but you may be very right if the account one is keeping with banks is fixed account. Aside this, I may want to differ with you in the sense that the person that is banking with a bank has every choice to withdraw all his money in time of trouble because no finicial law stops him from doing so.

 

[Bookwormlux]

Insurance companies are more preferable than Banks. I am saying this because insurance companies are going to come through whenever we get into some die minutes needs that will need financial intervention online banks that only give us a little percentage per annum as interest which is very low compared to what we gain from insurance companies.