Sciencelovers - Insurance or investment is often a serious conversation. Sometimes the success that can be achieved by a person is often ...
Sometimes the success that can be achieved by a person is often seen from the possessions he has, such as from the large amount of investment he has, the land that is everywhere, how many cars are owned as well as how luxurious the car is, how many houses are there and so on.
Everyone is competing to continue to look for material value and also investment without thinking about the future risks that will be faced so many people think insurance or investment, which should come first?
Insurance or Investment?
As you know, a person's purchasing power must match their ability to have insurance.
If you have both investment and insurance, then this will not be a problem anymore because you also have more funds so that you can cover all existing costs.
But if we only have one type of fund allocation, which one will we choose?
Insurance offers protection or protection while investment will provide preparation of funds that are useful for your future.
Often many people invest to be used in their old age or children's education in the future.
However, there are many financial consultants who prefer that someone prioritizes using insurance first.
Why is that?
Logically, it can be described if your mind and body are healthy, then investment will be obtained easily and not prioritizing investment to treat someone's condition.
The problem is that there are still many people who think that investment can be used as a form of protection for the future.
Investment can indeed provide enormous benefits if you choose the right investment, understand the risks and control the investment risks.
This is because every investment must have losses, including investments in insurance. Indeed, many provide statements about the benefits of investing in insurance.
However, it should be noted that in addition to having a plus value insurance also has a minus value that must be considered before actually plunging into the world of insurance.
Advantages of Insurance Policy For Investment
Not a few say that insurance policies provide multiple benefits for investment. This is due to the following things;
Transferring Risk
As is the principle of insurance, the participant will transfer the risk he has to the insurance company by paying a relatively small premium every month.
Discipline Set aside money
Because the participant has to pay a premium every month, he will automatically set aside money to pay the premium.
For those who are not disciplined about finances, of course setting aside money to pay premiums can be better even if it is forced.
Giving Funds When Needed
Such is the concept of insurance, where the insurance company will provide funds when the claim made by the participant is received.
For example, participants are sick and do not have money to go to the hospital or pay for treatment at the hospital.
Participants can make a claim to the insurance company to provide funds for the cost of treatment.
Providing Financial Protection
When viewed from the system, it is true that insurance can provide protection or security in financial conditions.
Although the financial condition is not too good, participants do not need to worry about various things that have been insured.
Thus, finances are already protected with this insurance.
Can Be Savings
There are insurance companies that will return the money paid regularly every month if the money is not used until maturity.
For example, there is health insurance with a maturity of 20 years.
After 20 years, it turns out that the participant does not fall sick according to the insurance criteria, then the money will not be used automatically.
That way, after 20 years, money can be taken back and some even provide a 100% back guarantee.
Combined with Investment
Currently there is such a thing as a unit link, namely insurance that is combined with investment. Participants will pay a premium where the premium is used to pay for insurance as well as investment.
About the amount of insurance and investment depends on the insurance participant. He could have chosen a bigger investment or bigger insurance.
Insurance Losses As Investment
Not only about the benefits offered by insurance policies but also losses. There are several losses that can occur, namely;
Premium will be forfeited
Not all insurance companies will provide a 100% money back guarantee when due but no claim occurs.
There are those who only give 60-80% or some even burn them.
So, even if there is no claim during the promised period, the money will not be returned. It could be, this is why people are reluctant to invest. Usually they ask, 'where is my money?'.
Basically, when premiums are paid, there will be a sense of security felt by insurance participants. Well, that sense of security was bought by the participants.
So that even if there is no claim until maturity, the money will not be able to return due to the sense of security that has been given to insurance participants.
Therefore, every insurance participant must understand the agreement with the insurance company well so that they can know that insurance can be an investment or not.
Not all claims can be granted
This is probably what happens most often. The participant has paid the premium, then the time comes for the participant to need money due to illness or other things.
However, when claiming, the participant does not get anything, aka the claim is rejected by the insurance company.
This can happen because the type or criteria that can be claimed have been recorded at the time of the agreement.
This can be used as an investment risk in the insurance world because it often happens. In fact, not infrequently there is a hidden agreement that was not previously understood by the participants.
So, when participants think they can get a claim, because it doesn't match the contents in the insurance agreement, the claim cannot be liquidated.
After knowing insurance and investment, which one should come first? Then you can find a bright spot to invest in the right choice as a form of future protection.
