insurance plans vs. savings bank accounts

January 4, 2007 5:56am CST
would it be wiser to get a health insurance package, a pension insurance plan, a car insurance scheme, or even a business insurance package over maintaining a savings bank account that has a high-enough interest rate? well, i think it would be better to get a savings bank account with a high interest rate over getting insurance packages to store your hard earned cash for future purposes, but only if you have a good investment plan with some of your money. for instance, you should have a high-earning job, as well as a stable business establishment so as to further increase the amount of cash you store in your savings bank account. this is because, when you already have enough money to store in your savings bank account, keep your business establishment running and continuously developing, as well as to keep you in a high standard of living conditions, then your money would continually earn enough interest from your savings bank account, which, in turn, would reach a critical degree that would be enough to finance the continuous operations and development of your business, add up to your savings bank account, and finance your high standard of living conditions. but, in case you're not one of those business gurus, you should consider getting an educational plan for your kids, a business insurance package for your capital venture, a house insurance to prevent any losses that could be incurred from natural causes that could damage your home, a good car insurance plan that would prevent you to incur any losses when you have a vehicular accident that cannot be perpetually prevented since motorists and pedestrians are all exposed to day to day road hazards. well, you should also get a health insurance package that would help you in times of dire need, such as in times of sickness, accidents, etc. - events that cannot be prevented in a definite manner yet can always be well prepared for, you know. in all the events of our lives which cannot be prevented to happen, we should always make it a point to at least prepare for the worst, you know. well, what do you think?
2 responses
@iloveit (316)
• Canada
5 Jan 07
I would try and settle for both actually. A tradeoff between the two. I would have some savings in high interest account but would not be without insurance, specially if its health insurance. I know someone who travelled and got sick there, which cost him $150000 bill from the hospital. Since he was abroad he had to pay all of that from his pocket. You know in that unfortunate situation one could lose their life savings and high interest account would not be of much help.
• India
5 Jan 07
I feel better to go for insurance, because we get tax benifit, May be the returns are not high, but in long terms it helps a lot..