Do not club insurance and investments

Most of us tend to club insurance with investment. Many of us invest in cash back policies when going for insurance . This is not a great idea.

Always prefer "term" insurance policies only. Use insurance only for covering risk.

What is term insurance?
When you put your money somewhere, you expect something back. With a term life insurance, that is not the case. If you die, your nominee gets something. If you live, no one gets anything.


Premium for term policies are lot lesser than non-term policies.

You don't incur a hefty commission cost on the higher premium paid for non-term policy.

Insurance is used only to cover risk and you can decide other modes for investing your money.

if, term-policy is not advised by any of your broker/LIC agent , then he is more keen on his commission than your personal interest.

Like all financial dealings, "UNDERSTAND" the product before you invest and always have in mind that "Insurance and investments must be mutually exclusive".

What about insurance for retirement planning , child's future planning , etc ..?lets discuss that in the forthcoming articles.

Please write to if you have any questions

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Anonymous said...

Appreciate your great ideas about Investing and Financial Intelligence.
Please keep up the good work to educate the masses.

Anonymous said...

i really learned from your blog..thanx dear, keep teaching us or guiding us..but i have some queries which i will mail you, from my id...thanx


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