Insurance & Investment, What's the Difference?

Everyone should adapt their financial planning according to their needs and abilities. 20 Apr 2022

In this day and age, insurance and investment have become an inseparable part of the life of modern society. While the act of saving some of what is produced today and saving it for the future is considered a smart move, many also make the mistake of thinking that Insurance and Investment are the same thing.

In fact, many of us think that an investment or insurance plan owned by someone will definitely be suitable for someone else. In reality, the needs and abilities of each person or family are different. Everyone should adapt their financial planning according to their needs and abilities.

In order not to fail to understand, let's look at some of the differences between Insurance and Investment:

  • Objective

Insurance aims to provide protection to a person or family from various forms of financial loss that can occur at any time, either in the form of loss of life, damage to property, or health problems.

Investment aims to get a return of all money or assets, which have been given to third parties, along with the profits at an agreed time in the future.

  • Results obtained

Insurance provides protection or protection that can be enjoyed during the coverage period. In life insurance, you can get the Sum Insured as much as agreed between you (the Insured) and the Insurance Company (the Insurer). As for health insurance, you can get protection/reimbursement of treatment costs (hospitalization).

Investments provide returns on assets or money invested and returns on investments based on conditions that affect the investment, for example: when investing in foreign currency, gold, or stocks, the value of money or assets will be affected by the price of the investment.

  • Based on benefits flexibility

You can use the results of the Insurance only when the insured risk factor occurs. Meanwhile, you can get the results from your investment at any time, according to your considerations or needs.

After the explanation above, hopefully you will understand more about the difference between Insurance and Investment. Buying Insurance cannot multiply your money because Insurance does not have the concept of money development as well as Investment. The concept of insurance is protection / anticipation of risks that can arise unexpectedly. So how, do you have insurance coverage?

Visit or contact our Customer Care at (021) 25566788 to get more information about the benefits of our life insurance products. Spread this information to other friends and family so that they are also educated about the benefits of life insurance products. Wiser and more #Understand your protection, yes.



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