General insurance Is Insurance Investment or a Liability?

[Yugocean]

Thank you very much for your great answer! We may buy car insurance and if we don't encounter accidents during the insured period, we lose our money. But if we don't have insured our car, we will lose more money. Insurance will provide you security. It is like buying a padlock for your house against theft and burgulry.

This reminds me of our car accidents, one of our old car was hit by rash driver, it wasn't insured then, and that rash driver abused us instead.
Next time , we purchased new car and insured us, but no matter what accident, we don't say anything to rash drivers, insurance gave us chance to recover the demage.

 

[Jasmine]

Life insurance is definitely not a liability because if you did not encounter accidents and did not have to claim any benefits, you will still get the benefits of insurance after your policy matures. Non-life insurance can be considered a liability because you don't get benefit of you do not encounter any accidents.

 

[sincerem]

Most people might see it as liability especially the ignorant ones. But it's never a liability, it's an investment for the wise, to protect against unforeseen circumstances in the future that might wants to dwindle an individual's career, business and whatever. It's good to invest with the extra bucks we could've used for useless things.

 

[Augusta]

For me no matter how we want to look at I think believe that insurance is an investment because this is like keeping money for future occurrences. You know how it can be with happenings in the future but there's no means of solving it. But with insurance this can be sorted out

 

[Mika]

I know a lot of people who have paid auto insurance for many years and have not benefitted from the insurance as they never encountered accidents. However, just because you had to pay for insurance without any returns does not mean your payment is wasted. Having insurance provides financial security.

 

[Chibson]

In my own perspective I think it is an investment because it got you covered. You are rest assured that whatever happens to your properties will definitely be paid for which makes it very unique and advisable for anyone. So I don't think it is a liability rather it is an investment.

 

[Jasmine]

I don't think insurance can be termed as a liability even though for some kind of insurance policies require you to continue pay premiums without any benefits if no accidents occur. For example, if you paid $100 as premium for your auto loan, and no accident occurred, you will lose that money.

 

[Alexandoy]

I have no life insurance and at my age, being a senior, is not ripe to get a life insurance because of the limitations. For the young people the insurance is an investment. They pay the premium for 20 years and after the agreed term they can withdraw the value of the principal. It is like a retirement plan but the difference is when the insured person dies.

 

[btaliat]

Whoever think that insurance is a liability don't know what he or she is saying. An insurance package can become a liability when you choose it for a wrong purpose. Take for instance you are a business owner and you are doing car insurance instead of property insurance. Insurance ensures safety to some extent.

Yes you are right. Some people don't have prior knowledge on insurance and they don't have access to the service of some brokers that can actually put them through what insurance is all about. While trying to go into insurance, we should endeavor to go into the one that we know that it is likely to happen.

 

[kayode10]

Whoever think that insurance is a liability don't know what he or she is saying. An insurance package can become a liability when you choose it for a wrong purpose. Take for instance you are a business owner and you are doing car insurance instead of property insurance. Insurance ensures safety to some extent.

 

[Mika]

Investment means putting money into something that will give you dividends in the future. Liability means something that you are obliged to pay.

Do you think insurance is an investment or a liability?

Generally speaking, insurance is an investment. You pay the premium and if something unwanted happens during the insured period, the insurance policy will cover your loss and damages and you get a return on your investments.

Quote opposite to this general theory, insurance can also become your liability. Paying your premiums can become a financial burden if you have bought a lot of policies. Let say you have bought house insurance, auto insurance, health insurance, life insurance, or even insurance policies for your family members. Unless you earn a lot of money, paying premiums for all these policies can be a financial burden.

 

[Jamoflondon]

If you are rich enough to afford the premium attached to the particular insurance you bought then you can see it as an investment but if you are just a struggling commoner, it might seem like a liability because it will affect the little income you make and it might distract you from paying the necessary bills

 

[Mandy96]

Normally insurance is supposed to be an investment but most of these insurance companies has made it a way to make all the good profits for themselves and the benefits of the client will seems so little especially for the commoner. Well, you shouldn’t blame them because they are also trying to make some profits for there pockets

 

[Mika]

We always need insurance for financial protection, it is not an investment or liability, it is more like financial security which is paid till the end. People insure whatever is possible, and by any agency (public or private or PPP) and they feel security of any damage they will bear due to anything.

Thank you very much for your great answer! We may buy car insurance and if we don't encounter accidents during the insured period, we lose our money. But if we don't have insured our car, we will lose more money. Insurance will provide you security. It is like buying a padlock for your house against theft and burgulry.

 

[Wisdom01]

It's an investment to the shareholders that usually invest in those insurance companies to earn profit , but is nether an investment or a liability to you insuring your property , because you were not forced to repay, you actually do sign a deal to cover up for any losses that might want to accrue

 

[Yugocean]

We always need insurance for financial protection, it is not an investment or liability, it is more like financial security which is paid till the end. People insure whatever is possible, and by any agency (public or private or PPP) and they feel security of any damage they will bear due to anything.

 

[btaliat]

This question has been haunting me for long. I will like to differ from other people's opinion because to me it insurance policy serves more as liability than investment. There is someone I know that has been paying premium for long but he has never benefitted from it since he has not experienced any losses against the insurance.

 

[Mataracy]

As for me I will say that insurance is very good to invest in it. Insurance is an investment because all the premium that one is paying now is in record and should in case any thing happen they will come up and help that person. Let say that some body insured one car and the premium one has been paying can not buy that car but whenever the car get any accident the insurance company will still buy new car for the person despite the premium paid is yet to be equal to the cost of the car.

 

[Good luck]

Insurance is a very good plan.It is not a liability as people think it is but one should not default in paying their dues which really make it worsen when it comes to getting one dividend as at when due.Insurance plan or policy is one major asset one needs to have a good future at the end of the day.