augfan77
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Posts: 21
Joined: 07 Mar 2006
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Investment and insurance |
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Could you tell me guys what are the advantages of insurance over other investments? Thanks in advance
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Wed Mar 22, 2006 5:13 am |
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financialpeace
Contributing Member
Cash: $ 6.20
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Joined: 21 Feb 2006
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I have to agree with coaster...
life insurance as an investment:
high fees, fees, and more fees, limited to very low returns. Basically, every cash value life policy, is a a term policy with an investment tied to it, therefore, the fees are usually higher when you give full responsibility to someone else to make you money, they have an instant conflict of interest on your investment. Not to mention, the premiums are usually very high.
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Thu Mar 23, 2006 1:20 am |
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nkthen
Full Member
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My financial adviser always advocates:
1) Insurance FIRST
2) Investment SECOND
Reason:
1) Insurance - When you lose your life/limb/health, you get money
2) Investment - When you lost money, you LOSE MONEY
Always get your 'safety net' covered before investments.
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Mon Mar 27, 2006 11:19 am |
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Rolo
Yo' Daddy

Cash: $ 309.70
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Location: Colorado/Florida |
quote: Originally posted by nkthen My financial adviser always advocates:
1) Insurance FIRST
2) Investment SECOND
Apparently you are talking about an insurance agent, not a financial advisor.
Investments and insurance are two completely different, unrelated things, no matter how they are packaged.
Cash value/whole life/universal life/etc. are all rip-offs.
"Expect me when you see me."
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Tue Mar 28, 2006 1:22 pm |
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nkthen
Full Member
Cash: $ 9.90
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I would say that it is related when you look at the whole picture of a person's financial status.
A person's financial status would include his current earning ability and the future earning ability and usually it can be tied with providing the family.
While it is true that insurance is benefitting others, but you may have forgotten that there are insurance that benefits YOU.
One important one would be accident/hospitalisation insurance. It will benefit you because in the event of hospitalisation, the money outlay can be HUGE.
This is at least true for my country. A week stay in my country's hospital can cost you at least $1000.
And, I think a financial advisor is someone who covers financial aspect, including insurance.
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Tue Mar 28, 2006 5:28 pm |
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