What you want in INSURANCE? What does you need in insurance of yourself? Simple Insurance or investment also?

Question

What you need in an insurance of yourself? Does you want that scheme have only saving and protection or it provide you investment facility also as growth of your money rapidly. Or you want any other thing please mention.

THANKS FOR ANSWER.

Answer 1

My friend, please read this article well, I just want to stop mis-selling by agents and hence I have written such a big article. Agents, please do not beat me for posting such comments which will s***w your commission. :)

Insurance is defined as risk transferring your pure risks to another party. "Another party" is the insurance company. "Pure risk" means that any risk which is completely unpredictable and the insured should not be able to make any gain if the risk happens. Thus, options which is thought of as an price rise/falling insurance is not defined as a insurance, but options!

From this definition of insurance, you can understand that there is no room for investment in insurance. If you look into the history of insurance, you will see that term insurance is the purest form of insurance and oldest one. Later on, to make people feel good, insurance companies kept on inventing whole life, endowment, universal life and at last ulips. Please note that term insurance only charges for mortality, whereas others charges for mortality as well as investment return.

So, it is always advisable not to go for any type of insurance except term life. In all other cases administrative chrges etc will eat out your capital and hence your effective yield will be much lower than what is projected even by prospectus.

If you have a budget of Rs. 100 for premium, pay Rs. 10 for term life premium and rest Rs. 90 into fixed return instruments (to simulate whole life) and/or mutual funds (to simulate ulips). This combo will work much better.

Also, you can have enough insurance cover for lower premium.

If you do not subscribe to my idea, just try to find out an agent who will be interested to sell you a term life policy. You will find it most difficult task as they will get low commission. I am not telling that by generating low commissions, you will win but remember that a good product will pay less commission to a salesman.

Anyways, in case you need to cover your life even after 70/80 yrs of age (which nobody usually needs since at that age people have no liabilities since children become independent, have good amount of savings and most importantly no job whose income is to be substituted by insurance in case of death of earner) you have the only option to go for whole life cover which will cover you till 99 yrs.

Answer 2

it all depends on your risk appetite, your investment portfolio

Schemes where u get investment facility comes with the risk of not getting your money all together (though in rare cases...), or incurring loses.

U need to plan out when do u need ur money back, according to which u can get different options for investing for eg.: u may need the entire sum of money right at the end of the maturity, or u may need in a period of say every 5 years. Different insurance policies give different options

Personally what i would suggest is......... first go for a secured and assured return simple insurance policy. This will insure a definite sum of money, no matter what the market condition is. After that u can go for riskier investment for growth prospects with an aim of higher returns

Answer 3

It Sounds like you are really screwed up by this problem. Hope you could get good luck here.http://insurance.online-frees.info/insur...

Answer 4

There are different insurance policies available in the market. You can choose the one which suits your needs and requirements. I would personally suggest you to go for a simple insurance policy which gives you maximum returns without any risk. You can read the articles at the website below:-

visit- http://www.paisawaisa.com/

Answer 5

it is always better to see the things separately. pure insurance is ideal. But at this point the companies are in joint hands. we cannot compare the products and choose the one. the mingle deposit, investment, health  and lastly life cover making it complicated. as the insurance is regulated by the authority like three year lock in period, surrender charge etc it cannot be considered as a good investment option

Answer 6

insurance is must for any people for this world

investment also needed