Life Insurance- Do not 'invest'

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You buy a commodity for what it is and no other purpose. Life Insurance is a commodity for protecting dependents on death of the insured. But the insurance companies rarely sell their protect for 'life insurance'. They sell these for tax saving and investment. Such sale is detrimental to financial health of investors.

http://in.finance.yahoo.com/blogs/economaniac/why-shouldn-t-invest-life-insurance-031717806.html

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I have life insurance with LIC but by your information I am feeling we should invest in stock market instead of insurance policy.
Actually, the money we invest in Insurance policies, companies invest them in stock markets and earn big profit. Only a small amount is given to the customer. Also, while we are taking a new policy, there will be many hidden charges and lion share of the first installment goes to insurance companies in the form of their profit.
i too have LIC policy for me. but the information shared by you is very useful for me. thank you for giving such an useful information sir.,
Life Insurance policies are really good if you see it as an insurance , not as an investment. If you want to invest money, LIC is not the right place. You can invest money in stocks, shares , real estates, gold or even FD or RD but not in LIC policies.
That is true, in the end life insurance is nothing in terms of earnings. But if some thing happens to insured this is good for the family.
We should divide our investment into different categories. keep some amount as money in bank, invest something in gold and land and keep a small share for insurance policies. That's all.
Yes most of them do it but the person who takes the policy must check it if it is worth to take it or not as these days people can do anything to gain profit.
I have life insurance with LIC but by your information I am feeling we should invest in stock market instead of insurance policy.


Yes its OK to invest in share market if you want some money to invest for future growth but check it out as these days stock market is going down.So be careful.
That is true, in the end life insurance is nothing in terms of earnings. But if some thing happens to insured this is good for the family.


I know it i took a mediclaim policy last year and at that time i thought it will be a waste but recently i took a claim of 1 lac INR for the surgery of my wife and now i know the importance of insurance. :)
I have some policies also now I am feeling that I have done some mistake.
I have some policies also now I am feeling that I have done some mistake.

No Chetta....you are not wrong,
We should have at least one insurance policy. Though they have many defects, they provide us with a good investment too.
Actually, my husband is a bank employee and he has the target every month, to add new people, in addition to new account. Otherwise, his job will be in trouble for sure. :laugh: :laugh: :laugh:
That is true, in the end life insurance is nothing in terms of earnings. But if some thing happens to insured this is good for the family.


I know it i took a mediclaim policy last year and at that time i thought it will be a waste but recently i took a claim of 1 lac INR for the surgery of my wife and now i know the importance of insurance. :)

We are talking about life insurance and it's utility as investment purpose. Health policies are a must these days, I am pleased that you got the benefit of the same. I have utilized it may times too.
In my opinion, we should first take mediclaim and accident insurance policies from general insurance company. This covers hospitalization expenses. There is greater risk of accident than normal death. Also there are group insurance policies for employees of govt and corporate sector. Life insurance policy should be taken only if really necessary and then too not over insure.
Today most turn to these policies in the month of January or February when they are reminded about income tax!!!
I know mediclaim policies are different than life insurance but it happens most of the people try to have these for tax rebates.
I have too life insurance with LIC. I think it is good investment for our future as well as saving tax.

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Created Sunday, 26 February 2012 16:09
Last Updated Tuesday, 30 November -0001 00:00
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