Insurance is one of the ways through which you can protect yourself from the ups and downs of your financial life.
Many people view insurance as an expense, something they pay every month as premium, but insurance is beyond just a monthly expense—it is an investment.
If you take a decision, your insurance can pay you off heavily and done wrong, you can pay-off higher premiums while getting less in the return.
Here are some tips for you to make the most of your investment in insurance:
Always make informed decisions
The world of insurance is complex- there are many plans which can only confuse you because most of them do not differ in their core offerings.
They differ on the basis of certain small variations and if you are not savvy consumer, you may be paying more for something which you do not need essentially.
Always, make sure that you know as much as you can. Be an informed consumer and find out as much information as you can by reading insurance providers’ sites, personal finance blogs etc.
There are also many voluntary advocacy organizations which can definitely help you to find out correct insurance plans which suit your needs and pocket size.
Check the performance of the fund
Insurance companies always invest your premiums in funds they manage. If you are directly buying insurance plans from an insurance broker, do ask her about the performance history of the fund and how much it has returned in the past.
You can find many investment options but you should always focus on finding out about the historical performance of the fund and what are the expectations that the fund will provide better returns than others.
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