Investment insurance. You might’ve heard this term and wonder what it’s all about. When people make certain investments, whether it is in bonds, CDs, stock market, or anything else, they are taking a risk.
Whenever you’re about to take a risk, though, wouldn’t it stand to reason that you want to have some type of insurance? Every time you pull out of your driveway to go to work you’re taking a risk. It’s one of the reasons why you need to have auto insurance and one of the reasons why you should carry supplemental health insurance and life insurance. You never know what’s going to happen around the next turn.
The same holds true with investments. Even if you invest in an up-and-coming company, there’s a greater chance of failure than there is of success. Buying into the stock market, even focusing on the giant companies that have great stability and anticipated growth in the future is not a guarantee of success. There are plenty of stories of people who have lost everything investing in the stock market.
So, investment insurance, is it real? Yes and no. There are some companies that offer certain types of insurance for certain types of investments. You’re not going to be able to get insurance investing in the stock market in general. However, you can certainly find insurance for many other types of investments.
Is it worth it? That all depends. It depends on the type of risk involved, how much you’re investing in it, and how much the policy may cost. If you’re serious about looking into investment insurance, it’s best to sit down with an experienced broker and discuss whether or not their insurance company even offers this type of policy. Many don’t because it’s more of a scam intended to rip people off because of the inherent fear in making certain types of investments.
What you should be focused on more is ensuring that you have enough life insurance coverage and supplemental health insurance for you and the rest of your family.