Friday, 7 June 2013

Insurance As Investment

Today, I am going to touch on the importance of insurance. Insurance is a safeguard against the future, yet it is getting a bad name due to unethical agents who promise insane returns yet at the same time, unable to deliver what they promised. Let me just start by saying I am not an insurance agent, but through the process of knowing what I have bought, sees the inherent and immense benefits insurance can have.

I currently have just 1 insurance product under my name. I pay a fee of $100 per month for this product. It is known as an investment linked policy. It combines investment of your premium into some fund while offering you protection in the event of death. This policy by AXA is one of the best financial decisions I have made in my entire life. This is partly due to a good fund my agent has chosen, one which reaps me returns of more than 20% last year.

Of course, as I begins to understand my own financial health and more about the different financial products, I will most probably never purchase another investment linked policy. I will only go for health insurances as I believe in a few years time, my own investing should have shine through and generates me consistently above average returns. I strongly believe this as I have never felt as much excitement as trading and investing before. Call me a boring person, but I seriously feel that trading and investing and being in the center of all the news that are happening around me incredibly rewarding and interesting.

Before I digress further, I will end off by saying any responsible individual should definitely get a health or life insurance. Also, for investment linked policies that insurance agents recommend you, do not go into it unless you know about how the fund is performing. Do not take everything the agent says as facts, they are working for their best interests, their fat pay cheque, and not yours.

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