Pros and Cons of Investment Insurance

Investment insurance is rarely heard when compared to other investment instruments such as property, stocks and gold. However, make no mistake, there are also many people who prefer to use insurance as an investment. In fact, what are the advantages of investing in insurance? Just like other investment instruments, of course investment insurance also has its own advantages and disadvantages. Before discussing the shortcomings, let's discuss the advantages of investment insurance below:

  • Provides insurance benefits. Yes, as insurance, of course investment insurance can also provide insurance benefits. By paying the premium every month, you will get financial protection if there is a risk according to the agreement in the policy. So, while investing, you can also get financial protection when you need it.
  • Practical. Usually the insurance company provides insurance in various forms at once such as life insurance, accident insurance, and also investment. This investment insurance makes it easy for you to pay premium installments and combine them into one. No need to come to the insurance service office, you can also pay via credit card.

However, behind these advantages, there are some drawbacks that you need to consider.

  • The premium is more expensive. By combining insurance and investment, the premium paid will be much more expensive.
  • Money back guarantee is not 100%. Please note, not all insurance companies provide a 100% money back guarantee when a claim does not occur and is due. Some only give 60% -80%, some even don't guarantee money back at all.
  • Not necessarily the claim is approved. Indeed, investment insurance can provide protection when a health or life-threatening risk occurs. However, it should also be remembered that not all claims submitted can be fulfilled, depending on the terms and conditions agreed upon in the policy.
  • The return on investment is not that great. Usually, you cannot get detailed information about the type of investment you receive because the insurance company will choose it for you. The investment returns that are generated from the initial purchase of investment insurance are usually very small, even smaller than the premium paid.

Seeing the many risks from investment insurance, you should really consider it. Actually, because investment and insurance have different purposes. Therefore, investment and insurance should be separated. However, if you are sure to choose investment insurance, make sure you understand how it works before buying investment insurance. Hope it is useful!


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