Insurance Protection or Investment?

Last night I received a PM, asking why I switch between Insurance and Investment in my posts. The lady has no insurance policy and “invests” money in the bank. I cannot tell if she is a non-believer of life insurance but the way the followup questions were made, seems like it.
There are two aspects: becoming protected and of course enjoying a wonderful retired life.
 
Protection Insurance policy protects the insured (living benefits) and in the worst case of suddenly taken out of the picture, protects those left behind (read: FAMILY), called death benefits. It essentially provides a guaranteed wealth, in Millions. If one dies after two years, he/she would have saved only thousands, yet, as a death benefit, the beneficiaries will get that huge amount, parting gift so that in the next few years, their lives will not totally hit rock bottom. As a living benefit, imagine you get stroke or heart attack or cancer in the next two years, that same protection will advance a portion (and it’s again in Million term) for you to use in whatever way: medical expense? money in lieu of salary? etc.
 
Protection is number one because investments, savings and all may be put at risk and may get drained easily if you are out of work due to Permanent Disability or if diagnosed of a critical illness. It will be costly. You want to make sure that before your “buffer” get’s drained, there is something not from your pocket to help you out initially. 1 Million to spare? who gives that?!
 
I also post stuff about investments, which by the way, has been my personal crusade for the longest time. In whatever way I can, I hope to contribute to make people become financially independent, financially literate, and debt-free (I was a 3-year prisoner of credit card debts 2000-2003, since then I don’t own a credit card!). I have persuaded more than 30 people to get into the stock market and invest (some would really trade, like me, lol).
 
Investments are meant for people who already have protection policy, those who are already guaranteed sufficient MILLIONS to protect self and/or family. Because we invest with the goal of taking that European tour, or buying that nice house by the beach or that dream car right? We invest with a purpose. We should! because if there’s no end in sight or motivation to invest, it simply won’t work. We will not be motivated to have a disciplined investment scheme without a goal at the end. “Begin with the end in mind”.
 
If you can reach millions earlier by getting 10% avg annual returns, why settle for decades at 1% less 20% withholding tax less inflation effects by saving in the bank? Rule of 72. if annual growth rate is 10%, then if you invest 100K today, it will be 200K in 7.2 years, if 10% is consistent. So how much should you invest today if a European tour for 4 may cost 500K? When are you taking that tour?
 
So it’s really either the post is for you because you aren’t protected or the investment post is for you or both will impact you. 🙂