General insurance Is insurance a savings or investment?

[kayode10]

I am new to insurance as a whole. As a result I am trying to acquire new knowledge about how insurance works and how I can benefits from what insurance has to offer.

I know that a wide range of insurance like auto insurance business insurance life insurance health insurance home insurance contract insurance etc.

I know someone who enroll for an insurance policy needs to pay premium regularly this can be either quarterly or every month of the year.

For instance if you do auto insurance and unforeseen circumstances happen to your car the insurance company are going to prepare another one for you period and this seems to be a saving for me.

So I want to ask that is insurance a savings or an investment? I'm still confused about it.

 

[btaliat]

In my opinion, it is more of saving than investment. This is because apart from term life insurance which I even involves returning of money to the insured person at a specific time, insurance also gives compensation to the people that are under insurance policy, meaning they collect the money they have been paying as premium.

 

[Jasmine]

Insurance is a saving as well as investment. When you save you don't get large profits, saving means the wealth accumulates only when you put your own money. Investment means you will earn higher rewards, you will earn profits on your investment. Based on the policy you have bought, insurance can work like an investment as well as saving.

 

[Mandy96]

It can be considered as a savings in the sense that the insurer help you save by the process of you paying your premium and compensate you when it’s needed. We can also call it an investment, if we check out the short term life insurance closely, you would realize that it is almost like you investing against the hard days

 

[Good luck]

Insurance is more or less as a savings but what you get from it is more than what you save.we have some insurance company that you do monthly saving for five years and you are entitled to get 50% after two years with 15% interest while normal insurance plan is yearly in term of paying premium.Both of them are inter woven.

 

[AfriPeeps Official]

Insurance is neither a savings not an investment, it is simply what they call it, that is an insurance. If for example you insure your property and nothing bad happens, you won't be paid or given your money back. If you are saving money, one day you will be given the savings, the same thing with investment, you will be given in multiple but not so in insurance.

 

[Wisdom01]

I think to me it depends on the kind of insurance and the policy , because there are life insurance policy that is almost related like saving for instance the short term life insurance where you get your benefit at a particular point in time ,this is why people go for it

 

[btaliat]

From the argument, it can be said that while some people may see as a saving because in some insurance polices, especially term life insurance policy, you will be given your premium at a specific time, but other insurance polices only give you what you pay if something happens to what you insured against.

 

[Wisdom01]

From the argument, it can be said that while some people may see as a saving because in some insurance polices, especially term life insurance policy, you will be given your premium at a specific time, but other insurance polices only give you what you pay if something happens to what you insured against.

Exactly the life insurance coverage actually looks like that of saving , because of the benefits to be received at a specified ,and I also see it as a compulsory saving , because you need to keep up with the insurance policy and follow it up , that's why I prefer it than any other insurance policy as at now

 

[Mataracy]

According to my own opinion I will consider it as investment in one side and savings in another side.
I consider it as savings because it's what they will still return back to the person with interest in care any incidence occur and investment because there are some policy that one can get interest from the money invested.

 

[Sotherefore]

Nice question. even me I don't really know if it is a saving or investing but from what I read online about insurance I think it is like an investment that you have save to cover up some of your assets.this can actually help you in times of need because the insurance company can help you recover what you lost accidentally.

 

[Chibson]

Insurance sometimes may be considered as investment and sometimes saving but I think using shaving is more appropriate because what you paid for is actually what you are going to get. Investment means your money will increase in value or the compensation you are going to get will actually be bigger than your premium.