Difference between Investment and Insurance
Most of the time people confuses both savings and the insurance. Some times without proper knowledge investing in the insurance will eat your money. Insurance is product to transfer risk to the insurance company of your early death and to give the financial security to your family incase some unforseen and unfortunate event take place and you die whereas Investments is taking the risk and gaining maximum returns depending on your age and time period of your financial goal.
What is Insurance?
Insurance is nothing but an agreement between the insurer (The Insurance Company) and the insured (You) to pay an amount as compensation if any unexpected event occurs. This amount may vary from a few hundred to even a few crores. The maximum amount the insured person can claim depends on the amount agreed upon as per the insurance policy. The concept of insurance is brought into the market only because of the family protection in case if the only earning person died unexpectedly.
But, because of the market competition and pressure on selling more number of units, companies started rolling out the insurance policies with the mix of other features which is naturally exist in any other investment products. Unfortunately in India, there is very less steps taken to educate the customers about the insurance and financial planning. It is our life, customers should be very careful on their family and future.
Difference between Insurance and Investment
A lot of confusion on the difference between investment and insurance. Investment is something that we save up to use while we are alive. Insurance is something we save up for our family to use if we die early. The goals of Investment and Insurance are totally different. A lot of us take Insurance policies as investments.
Like every person may suffer from different medical problems and the medicine for the same may differ person to person. Similarly the insurance needs of every person differs from person to person and investment products may also differ depending on the many factors.
In case you have any doubt, kindly consult before investing in any financial product. We will be happy to extend our free consulting services to your family, friends, relatives and even your co-workers / collegaues.
Please feel free to contact on 8693800025 or email your queries with your details on ark.advisor@gmail.com
Thanks & Regards
Raj
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