Insurance is not financial planning

Recognize insurance as financial planning is something that is not accurate. Insurance is one of the tools for financial planning , but not financial planning. Seven key aspects of financial planning covers the business (cash flow ) , banking, real estate , stocks / equities, insurance, taxes and abandonment of the property ( estate planning ) .

Is insurance really is? Insurance is a way to transfer the risk of loss is borne entirely by its policyholders . This is the basic insurance. Insurance is categorized into four types of life insurance , health and disability, general and trade . And most recently it was associated with the investment.

However insurance has never made ​​fully as the only means of financial planning except by sellers (agents) that insurance is one thing that is absolutely fine high commissions. The public should be fully informed about the amount of commissions paid to insurance agents. Factors transparency should be made as a condition must on every insurance agents and financial planners.

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