Holicent
VIP Contributor
You should always know the difference between insurance and investing.
Insurance is a way to protect yourself from financial losses, such as medical expenses or property damage. It protects your assets from loss due to an event that you can't control, such as a fire or storm.
Investing is a different kind of risk. Investing allows you to reap the rewards of financial success — including appreciation in the value of stocks and other investments — without needing to worry about losing money if you don't get your return on investment (ROI).
Insurance is to protect you against unexpected occurrence. In most cases, the coverage pays out after an insured loss has occurred. You don't have much control over when that loss occurs, but once it occurs, the insurance company will pay out what's owed and then go after any additional funds that are available in its policyholder's account.
Investing isn't designed to protect against unexpected events — it's designed to give you returns on your investments over time so that they appreciate in value. The goal is not just for your investments to grow; it's for them to grow faster than inflation so that your total wealth increases over time as well.
Insurance is a way to protect yourself from financial losses, such as medical expenses or property damage. It protects your assets from loss due to an event that you can't control, such as a fire or storm.
Investing is a different kind of risk. Investing allows you to reap the rewards of financial success — including appreciation in the value of stocks and other investments — without needing to worry about losing money if you don't get your return on investment (ROI).
Insurance is to protect you against unexpected occurrence. In most cases, the coverage pays out after an insured loss has occurred. You don't have much control over when that loss occurs, but once it occurs, the insurance company will pay out what's owed and then go after any additional funds that are available in its policyholder's account.
Investing isn't designed to protect against unexpected events — it's designed to give you returns on your investments over time so that they appreciate in value. The goal is not just for your investments to grow; it's for them to grow faster than inflation so that your total wealth increases over time as well.
