06 October 2009

Part_1: Investing with Insurance? Think again...

Many people mistakenly linking investment and insurance. Investing through an insurance policy is very popular nowadays. However, this could turned out to be a costly wrong move because:

  1. there must be insurance charges (many agents always say FREE coverage), that's why the return will be based on % of sum assured.

  2. there must be years of locking period (many agents say this is for long-term), where you can't get back your "invested amount" if withdrawn prematurely.

  3. there is NO double-digit annual return ever. If yes, ask whether is it Guarantee? Written? If still yes, let me know and I will sign-up immediately.

So, be careful when you are dealing with these "financial providers". Insurance is a long-term thing. If you found out late, you will be penalised with $$$ or forced to continue for years.

*Hint: Insurance is for protection or long-term financial planning only. Not for investment.

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