Is life insurance better than other investment opportunities?

Life insurance is believed to be the cornerstone of sound financial planning. Life insurance turns the lives hassle free whether in survival or at death. One can replace income for dependents, suppose one breadwinner departs for eternal abode may push the entire family into outcast. Sooner or later, financial savings if any, will depreciate and livelihood may be difficulty and here the life insurance comes and becomes shelter. You can inherit some bucks for your heirs by saving it today in life insurance as well.

It is believed that Life insurance companies have not performed that well as ought to be and I believe there may be a debate and discussion to conclude the perception. Perhaps, people are at fault who think that life insurance is not the replacement of other investment opportunities. 

An investment is an asset or item acquired with the goal of generating income or appreciation. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In Finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit. There are several types of investment opportunities but the mutual fund is believed as better investment prospect;

Mutual funds

A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets.

Drawbacks

No Life Insurance Protection

No instant Tax Benefits

No Family income benefits

Returns equal to the Insurance cash values

There is no alternative of life insurance whether it’s for protection or for investment.

Just imagine……..

There is no alternative to the Life, there is no one who can love your dependents as you do, there is no other option to protect the family other than protecting you self. So, rush to the insurance company today and fetch a product before it becomes too late.  

Just imagine, you buy a new car and the show room manager request you to get it insured before coming on the road and the insurance agent also requested to sign the proposal form but you didn’t bother to pay heed to it and one day you met an accident. Just imagine the loss for a second. Just imagine the guilt of not signing the insurance agreement.

Let’s insure every citizen.

Tanveer Kolachi- Manager Underwriting

Dawood Family Takaful