Investment or Insurance? Which is More Important for You?

Investment and insurance are two very important financial products to support your future. Both have a very important role in protecting your financial stability in the face of unexpected things. Then, which one is more important? Investment or insurance?

It is very difficult if we digest it directly raw. To get a truly relevant answer, we must first know the meaning of the two.

Investment is the activity of investing in a profitable business to get profit from the profit-sharing of the business. In addition, investing also serves to protect your assets from inflation. Investments that are popular in society are usually stocks, mutual funds, bonds, and others.

Insurance is money paid to an insurance company that provides a guarantee according to the agreement between the two parties. This insurance can be in the form of health, vehicle, or life on the payer.

From that understanding, we can tell that they have very different functions. But of course, there are similarities, namely, both of them can guarantee your finances in the future, and unforeseen circumstances.

Now, how do you know which one is more important to you?

 

Adapt to your living conditions

Before you choose, it's good if you check your life situation from various aspects. Finances, work, relationships, and family, are the 4 most important aspects according to our assessment. The reason is that all these aspects greatly affect how your life will be in the future.

 

Finance and work

Where does your income come from? Is it from work? Or from the business? Many people say that being a businessman is better than working as an employee. Whereas business is very difficult. Because you have to devote a lot of effort to keep your business.

 

Employees usually get insurance coverage from their place of work. The insurance money is deducted from their monthly salary. So, it seems there is no need to worry anymore. However, employees should also consider having other insurance, such as life insurance, vehicle insurance, and education.

Regarding investment, the best types of investments for employees are stocks and mutual funds. Choose stocks if you take the risk. If you want to be safe, buy mutual funds. What about business people? Unfortunately, business people have to think about themselves. Business ups and downs aside, it's good if they buy more insurance than employees. In addition, investment is also important to strengthen the finances of business people. Because one business is not enough to make them live in peace.

 

Relationships and family

Seeing who the people around you are is also an important factor in determining between investment and insurance.

Family is an important part of a person's life. Having insurance is a sign of your care for your family and other loved ones. Something unexpected could happen to your family. For that, you need insurance to pay for these unexpected things.

Apart from that, you also have to have something valuable to leave with them. Investment can be the best choice for your family.

 

Limited funds? No problem

The biggest problem someone has when doing something related to money is the availability of funds. This crucial thing, of course, can be solved easily if you think deeper.

I want to buy both investment and insurance with limited funds. How to?

If we do deeper research into something, of course, there will be many gaps that increase the possibility of doing anything. For example in insurance and investment. Many people say that these two things are only for middle to upper-class people. The lower class people deserve to have it because of its high price.

Is it expensive right? The answer is relative. Some are expensive, and some are cheap. The only people who say it is expensive are those who only know briefly and have not done more in-depth research.

 

There are so many companies that provide investment or insurance at a practically easy price. For investment, we can take the example of a mutual fund with a very cheap purchase price. About insurance, many insurance companies provide insurance at low prices. Some even provide payment per day so as not to be burdensome. This certainly makes it very easy for anyone, from any circle.

We shouldn't judge something too quickly, without looking at it from the other side. Because, the side that we see, is not necessarily the side that is seen by other people. In essence, either investment or insurance, you can have both of them at a low price.

Also, make sure you make careful planning before starting to buy both. It is intended so that you do not experience failure and financial problems later on.

 

Everything depends on your decision

In the end, all decisions are up to you. Whether you want to be more concerned with investment or insurance, both are important. To be sure, you must first pay attention to all that we have explained earlier. Make a careful plan, and try to contact a financial advisor for better results. Because, you certainly don't know for sure whether your financial condition is healthy, or is in the current state.

In essence, insurance is good for those of you who want to protect your finances in the face of unexpected things. Meanwhile, investing is perfect for those of you who want to achieve financial freedom in the future. Investment is also useful for protecting your money from the threat of inflation.

A little advice from me about how to plan both. First of all, please choose which type of investment you want. Is it stock? Mutual funds? Or other? After that, you divide the percentage of your salary to invest. Average 5%, 10%, or even up to 2%. Then, for insurance, you should choose insurance that is not too burdensome. Choose insurance around which is important for you and your family. Don't burden your life by giving insurance that doesn't matter.

In addition, several insurance companies also provide purchases within a day which are very cheap. You can choose this as an alternative.

That is an explanation of which is more important between investment or insurance. I don't immediately decide which one is the best for you. Because every reader has different circumstances. So, please conclude according to your wishes.

 

Share :