What is considered as an expense? Does paying insurance consider as an expenses or an investment? - Seedly
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Anonymous

Asked on 15 May 2019

What is considered as an expense? Does paying insurance consider as an expenses or an investment?

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It varies from person to person.

I advise my client to place Insurance meant for coverage under expenses

While Endowments or Investment plans can be under the respective categories accordingly

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ūüĎć
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Policies with no cash value are expenses. Policies with cash values are assets/investments.

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If you think about what Robert Kiyosaki says; Assets put cash into your pocket, Liabilities take cash out of your pocket.

I would have to say insurance that does not have cash value would be consider as expenses and those that hold value such as endowment would be considered as savings/investments.

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Gabriel Tham
Gabriel Tham, Kenichi Tag Team Member at Tag Team
Level 9. God of Wisdom
Answered on 17 May 2019

Most insurance is expense. But if the insurance has a savings or investment portion, that is considered savings or investment.

As long as money goes out and does not generate value, its expense.

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