Insurance

Investment

Designed to provide financial protection against unexpected events or losses

Designed to grow wealth over time

Provides coverage for specific risks, such as death, illness, or property damage

Do not provide specific coverage

Pays out a benefit or compensation in the event of a covered loss

Provide returns in the form of capital gains or income

Generally considered low-risk investments because they provide a guarantee of payment in the event of a covered loss

Investments can be higher-risk, depending on the investment vehicle

Typically a short-term product, with coverage lasting for a set period of time

Generally longer-term products, with a focus on growth over several years or decades

Can be difficult to sell or convert to cash

Can be more easily liquidated

Heavily regulated

Subject to less regulation

Often tax-free

Investment returns are subject to taxation

Often require specialized knowledge and expertise

Can be more accessible to a wider range of consumers