Which one gives better returns Insurance Policy or saving account in a bank. Insurance policy gives you financial protection against unwanted cirsumstances such as accident, disease etc. however, if nothing happens and you have to wait until the policy matures, is insurabce policy as beneficial as saving account.
@luri Insurance policy might be more better than opening a savings account because you will be assured of coverage when the risk insured against occurs. But I would go for a savings account because I will be able to raise money that I will not only get to enjoy in the future, but will also be available to me anytime I need it. An Insurance policy will only be available during emergencies and only when the policy matures. Also if the risk insured against does not occur, there is no way I can get back the premiums. So, a savings account is much better even if it partially guarantees security.
Generally speaking, an insurance is better than saving money in the bank because the earnings is greater aside from the fact that you are insured while building up the policy. My wife bought an insurance policy that she paid the premium for a period of 5 years. That was the time she was insured. After 5 years, her money was returned plus interest earned. And she is not insured anymore. That’s pretty good. But she did not renew her policy because of the prevalent atmosphere that some insurance companies are closing without notice. In fairness, if the insurance industry in your country is good then getting an insurance policy is a good investment.
An insurance policy is far more efficient and useful in the future, since not only will you be able to save more, it's much safer.
An insurance policy is better than saving money in a bank because unless you are saving money in a fixed account, money saved in a bank is tempting. You save for a month and withdraw later because of small emergencies but in insurance you only withdraw if the policy matures.
@Kiama I totally agree with you. For me, there is no way to compare these two options because I think the insure policy is certainly the best option.
I do agree with the insurance policy, it is way better than opening a savings account in a bank. You won't feel you're money growing in a savings account unless you put a ton of cash in there. At least you won't be able to get the money until it matures.
Well this is when you have to think of the "what if scenario. As usual, this is where good risk management skills and carefully thinking about your options would do you well.
