Many people consider life insurance is an investment and then they keep highlighting the fact that they are getting less money at maturity but I don't think they are right in thinking like that because Life Insurance is not investment.
Do you Consider Life Insurance as an investment?
- Thread starter Hate2Wait
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- #5
I didn't understand. What do you mean
I said, in the post office, there is a scheme MIS which is fine. You deposit some money and can take out the interest every month.
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- #7
Oh ok. I'm yet to try post office and actually no plans to try. Thanks
Insurance is also an investment we can say. We invest money so that it may be helpful if we have an accident.
Life insurance is a good investment. I would consider it an investment because at the end of the day, the family would benefit from it.
Indirectly, life insurance can also be considered an investment, especially when the head of the family dies, so that you will receive compensation for financial losses. There is also a type of life insurance where part of the premium paid each month is allocated to investment instruments. So life insurance has a dual function as both protection and investment.
Many financial advisors are aggressively marketing life insurance as an investment since they are getting very high commissions. However, it is not suitable for online workers, investors who do not have a steady income, and cannot pay the premium monthly.
Life Insurance benefit others but not the one who insures. Endowment plan is better as that will give the insurer money in their life time.