First understand that both venue of investment has its own importance
Insurance (Llfe Insurance) is a protection against future contingency which may or may not arise however Mutual fund is an investment venue wherein any who wants to earn money can invest in Mutual Fund
Insurance policy compensate the loss arising due to the death of earning member of the family.Any one can suffer physically which may amount to death or disabilities,(temporary or permanent ) /(partial or total).
during the time when covid 19 broke out many had lost their life leaving their family without a penny in their bank account. If any one had taken term Insurance then his family could make the loss in financial term to meet the household expense, though the person died could not be brought back but the family would praise the good deed done by the departing person.
Why would you invest in LIC? LIC is not an investment product. The purpose of insurance is indemnify the dependents incase of death of the primary bread earner.
It is my personal feeling but I am not against please do not invest your money in an endowment policy or ULIPs. The bonus of an endowment policy is not guaranteed. You will earn no more than 6-7% return on your investments
Instead buy a Term plan with a sufficient coverage and invest the remaining amont in other venue like share market, mutual fund i.e. an equity's or debt fund. This way you will have insurance and would have made smart investments too.
A 1 crore term plan is easily available for a premium of 12000-15000 depending upon your age and other factors.
If you want to go for life insurance then choose TERM INSURANCE.
If you want to go for investment then choose MUTUAL FUNDS.
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