It’s totally ridiculous when someone tells on buying a term insurance policy I will not get anything in return if I don’t die, Well let me first explain to you

Insurance policies are not meant for investments

If you aren’t convinced yet and want a return out of your life insurance policy you need to understand that in every life insurance policy there is a Mortality Charge associated, Mortality is the charge levied to cover your life, Mortality doesn’t earn you any return, So when you buy a life insurance policy quiet obvious you need to buy it with mortality, this mortality charge is levied to cover you for a particular cover, say 5 lakh, 10 lakhs, The same mortality charge will get you a term insurance plan which will cover you for adequate cover, It’s like in a lakh rupees invested if mortality sums out to be 12-18k the same will buy you a term plan the rest 80k in anyways available to you to various other financial instruments but why buy insurance which merely yields not more than 6-6.5% IRR matching inflation or even loosing to inflation over a long run

One more interesting aspect is term plan premiums are constant over the period of time or tenure, meanwhile mortality increases as age increases this makes investing in life insurance meaningless

Having worked several years into Life Insurance, Health Insurance, Mutual Funds & Closely with people into financial planning i am now putting my first step in investment advisory

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