Insurance is not Investment

Insurance is not Investment


In our country, unfortunately 99% people think that Insurance Cover is a part of their Investment.

While in reality both are apart, Insurance is tool to financially secure your family when bread earner no more, but investment is financial assets with you and your family.

Both are slightly apart, in insurance, if Mr X has paid his first premium of Rs 1Cr insurance Cover and there after due to some reason Mr X has no more, then Insurance Company will pay Rs 1 Cr to his nominee;

while in other investment tools, nominee of Mr X, will receive the same amount whatever he has invested with some returns/profit/interest, but sure not Rs 1 Cr to his nominee.

We are not against the Investment, we strongly recommends invest wisely and cleverly.

For example; if you have Rs 100/- to invest, just bifurcate the Rs 100/- in some needs of you and your family, there can be Risk management, Child Education, Child Marriage, your Retirement, Wealth creation etc. then invest the amount in different tools available in market with priorities, Some part in insurance for Family Security (Risk Management), Some in MFs, Some part in FDs for liquid assets, or some in Property for Long time Investment.

In my this post, i used a word “Invest Cleverly“, why? because I have taken an idea from the sea merchant who sail his products from one port to another and send spread his products in parts and use number of ships to sail them, why? because if one ship got sink then another ships will reach to destination and his loss will be minimized, otherwise the entire product will sink with the single ship.

Amit Saxena

Financial & Insurance Consultant
MaxLife Insurance Co Ltd & MaxBupa Health Insurance

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