Buying Insurance Vs. Saving Money in Banks

[Mika]

A lot of people who make little money are too afraid to invest in a fear of losing money, therefore, whatever they can save, they will prefer to save it in a bank. But is saving money in banks a good strategy?

Well, I don’t think so?

If you have little money and if you think investing is too risky, yet you have a desire to make additional money from your money, buy a life insurance policy.

Is buying a life insurance policy better than saving money in banks?

Definitely!

If you buy a life insurance policy, you will be paying mandatory premiums regularly until your maturity period, you will never miss paying premiums.

When your policy matures, you will have a substantial amount.

However, when you are saving money in banks, you might miss your saving schedule because you had to use that money elsewhere.

Your normal saving accounts will give you a very small interest rate, you get a better interest rate on a fixed deposit account but in order to use that service, you should already have a large amount of money.

Banks d not provide insurance coverage for your entire funds, however, life insurance will provide financial coverage for accidents and illness. If you die, your nominee will not have to pay the premium yet will receive the full insured amount.

 

[Augusta]

This is more like different strokes for different folks. people like things differently as such we can't just pick a certain one now and believe it will be okay for all.

it is not a one fits all for anyone. We need to look at each critically and go for the one we believe would work better for us.

Insurance is great as it gives one protection against risks which could be unpredictable and unexpected. So when any future occurrence one can be secured.

Banking on the other hands is about securing ones money and maybe getting interest too for future use. so one can go for the best options.

 

[Knowlopedia]

When it comes to planning your financial future, two of the most common options are buying insurance and saving money in banks. Both have their advantages and disadvantages, and the right choice for you depends on your personal needs and preferences.

Buying insurance can provide financial security and peace of mind in the event of an unexpected event, such as an accident, illness, or death. Insurance coverage can help protect your family from financial hardship if you are no longer able to provide for them. It can also help pay for medical bills or provide income if you are unable to work. Insurance premiums can be costly, however, and there may be restrictions on what is covered.

Saving money in banks can be a safe and secure way to save for the future. While savings accounts may not provide the same coverage as insurance, they can still provide a return on your investment and can be used to pay for large purchases, such as a home or car. Banks also often offer higher interest rates than insurance companies, which can help you save more money over time. It is important to remember, however, that there is no guarantee that the money you save will be available when you need it.

When it comes to deciding between buying insurance and saving money in banks, consider your financial goals, risk tolerance, and timeline. Although both options have their advantages, the right choice for you will depend on your individual situation.

 

[niche]

The returns from insurance policies vary to a great extent, some insurance companies give good returns to those who purchase insurance, while others do not. Often the returns from the insurance policy are lower than the interested offered by banks, since the insurance companies also deduct the amount for insurance coverage. The decision also depends on the number of dependents which a person has, if a person has family with children, it is definitely better to purchase an insurance policy while single people may not find insurance attractive.