Insurance is a Great Way of Investment
What, in your opinion, is the best way to plan your future finances? Is it just investment that just gives you some extra money after a certain period or is it investment that covers risks too?
Majority of you will agree to that fact that investment that covers you financially in the future against any risks, or in other words, investment in Insurance, is the best means of financial planning. However, budgeting investment is very important for a successful financial planning.
Random allocation of funds in insurance might get you into trouble in the future. Proper planning and managing the investment with discipline is of great importance.
Investment in any kind of insurance should depend primarily on your necessities and your affordability. Hence it’s important that you first decide on the risks that you expect your policy to cover, the extra riders that you might be requiring and the premium that you will be able to afford with your other necessary expenditures. Comparison of policies online should include all these factors.
As far as managing this investment is concerned, people are generally disciplined paying their monthly or annual installments, as compared to any other modes of investment. The sense of responsibility towards themselves and their loved ones and the fear of their policy getting lapsed drive one to maintain this discipline.
Insurance is the best type of investment tool with not much fear of losing money. It’s a safe means of regular investment with the added advantage of risk coverage and an expectation to get back a handsome amount at regular intervals after a threshold period.