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Insurance or Investment ?

To provide security guarantees in the future, many people are already eyeing financial products. However, the two most popular products are products such as insurance and investment. Both of these products are things that must be owned in an era like today. The ideal is that everyone should own both products.

The function of insurance is to get protection for someone or their family in financial terms from risks that come suddenly or unexpectedly.

Meanwhile, the function of an investment is to meet future needs so that one's purchasing power is not depleted by inflation. These two financial products are very important.

Which Should Come First?

One thing that is always debated is if the amount of assets you have is very limited and cannot cover both of these things. Which should come first? Insurance or investment?

Many think that these two things have a lot in common and all that needs to be done is to choose one of the two. This is wrong. Buying insurance cannot double the money you have. Too bad there are still many people who think that.

Insurance does not have the concept of developing money as in investing. The concept of insurance is more aimed at anticipating the risk of unexpected things such as illness or accidents.

With the occurrence of things like that, then you can get some money as a form of coverage that you get. You get this deposit because you have paid the insurance premium regularly beforehand.

But if things do not happen unexpectedly as mentioned, the premium you have paid will be forfeited or belong to the insurance company. In general, insurance for individuals can be divided into accident insurance, life insurance, critical illness insurance, and health insurance. Each of these insurance products has different benefits.

What if the funds are limited?
Back to the original question. Which should be a priority if you have very limited funds. Do you have to have insurance first or invest as soon as possible?

For those of you who work as an employee in an office, you actually have received insurance benefits without realizing it. But what about those who don't get this feature?

If the funds are very limited, insurance should be your choice. Prioritize insurance over investment because if there is a risk such as an accident, the investment that has just been executed will not be of much help.

This is because the investment value tends to be small and has not been able to meet the financial needs of you and your family.

Over time, when your financial situation has improved, then you can start investing. This corresponds to the situation realistically. If you have a healthy body and mind, you can definitely look for ways to increase your income results.

Tips for Choosing Insurance
Here we add some tips for you in choosing insurance:
  1. Choose insurance products in insurance companies that have been recognized and have good credibility. To make it easier, you can do an internet search for the best insurance companies.
  2. Because an insurance company provides many choices of insurance products, it is better if you are not in a hurry to choose a product that suits your needs. Use your best time to choose.
  3. Pay close attention to the terms and conditions imposed by the insurance company. It would be better for you to ask for some points that you don't understand.
  4. Understand the policy details. Find out what events are covered by the insurance company.
  5. Make sure the insurance premium you pay is in accordance with your financial ability.
  6. The case that often occurs is the difficulty in obtaining coverage costs. Learn clearly what procedures must be followed to be able to make a claim.
Back to yourself
Is it possible to invest without having any insurance? The question itself can answer it. This can actually be done if you dare to bear the risk. However, these risks can be avoided if you can start a healthy lifestyle so you can avoid the arrival of diseases that will drain your money.