Why Is There A Common Belief That Other Types Of Investment Are Better Than Life Insurance

Yes, I often hear people say "better to invest in other types of investment rather that in life insurance"

Well, to begin with, the word "better" is subjective in so far as investment is concern. If you can guarantee that you are going to live a long time, then perhaps life insurance does not look as attractive or lucrative as other forms of investment.

What if you had died yesterday after contributing the premiums for just a month? Obviously, in such a situation, no other investment can match life insurance, isn't?

Most people tend to perceive and judge the quality of an investment based solely on the rate of return - especially when it comes to an investment they disfavour like life insurance. They discount the fact that the object of investing also affects the quality of the investment.

It is a known fact, the primary function of Life Insurance is financial protection in times of greatest need; that is when a person dies or becomes permanently disabled. In this respect, life insurance reigns supreme as an investment product.

Moreover, you are only setting aside a small portion of your money in life insurance. The major portions are already in other forms of investment. Why then do you need to argue on this small portion of your investment?

So, you should give financial protection your top priority before you talk about other forms of investment. Invest with peace of mind make sure that your family's financial needs are taken care of first.