Build your professional network on facebook via our app Go to app
 
<< Prev  25 of 27 in Topic  Next >>
Posted in Community :

Secure the future - Insurance

 

Should insurance be purchased as an investment?

Created by : Vijay Kumar, Actuary Manager, LIC  | 04 27 2009 06:53:03 +0000
Industry : InsuranceFunctional Area : Innovation(Strategy & Execution)
Keywords : investment insurance life insurance insurance agents insurance plan insurance claims
Activity:  150 views;  last activity : 07 06 2010 20:18:09 +0000

Most of the people don't understand the actual & premier significance of Insurance. Its true actual meaning is that it is a promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company or we can say protection against future loss. But with the rising competition the insurance companies have  come up with new innovative features in the policies . They now promote their policies as investment. So is Insurance an investment...??

  
Share
 
 
  Rate : 
 
 
Yes Vs No
2
 
 
 
 
0
1
0
Support   Support
Top Argument
1
0

Insurance might not be the best place to invest your hard-earned money. But there are sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate savings. It is extremely unfair to compare the performance of insurance against other investments without considering the core features of insurance.

When you pay insurance premium for your car, do you get anything if fortunately no mishap happens? This means that you spent the amount to secure a valuable property.

Hence you must accept that out of the total amount paid by you for your life insurance, a certain amount is used for providing the risk cover and only the balance can be utilized as savings.

In other words, the total premium you pay minus the amount evaluated as the cost of insurance must be considered as the amount invested to get the maturity amount. If you calculate the yield from returns, you will be in for a surprise..!!


By Vijay Kumar, Actuary Manager, LIC  04 27 2009 06:57:36 +0000
 
 Found the debate "Should insurance be purchased as an investment?"  interesting ?  Suggest to your connections and communities  
 
Viewers also viewed
Two years back when I started earning I did not have much idea about insurances.. But now I do...
 
1772 referals 5 votes, 220 views
Influence or attraction
 
715 referals 106 arguments, 3685 views
Yes vs No
 
0 referals 2 arguments, 196 views
more...  
Recent Knowledge (2)
These days as I switch on the tv or radio or look at a hoarding I do feel that power of ads I...
 
3004 referals 23 arguments, 502 views
more...  
Sponsored Jobs
More From Author
I believe, given the established role played by the individual agency force in selling insurance products, and its particular relevance in rural areas, it is essential to fortify this channel with a set of new inputs. There is a rapid change witnessed...
Financial markets have rebounded, emerging market risks have eased, banks have raised capital, and wholesale funding markets have reopened. Even so, credit channels are still impaired and the economic recovery is likely to be slow. How can  the...
This is a very good initiative by the insurance firms, it would great if others also start offering such schemes. I really Appreciate the step taken by both insurance company. But for "one can claim OPD charges only once during the during policy term....
more...