Life insurance is designed to offer financial safeguards against death of the policyholder and also works as a good investment plan, which helps you meet several life goals in turn. The life insurance industry posted growth of 12% between April 2016 and March 2017 with premium income touching Rs.

Is it bad to not have life insurance?

You need life insurance only if anyone would be put at risk or suffer financially because of your death. Without life insurance to pay off business debts, an owner’s heirs might struggle to keep a company going or be forced to sell it.

What makes term life insurance a good investment?

Term life insurance, unlike permanent life insurance, does not have any cash value and therefore does not have any investment component. However, you can think of term life insurance as an investment in the sense you are paying relatively little in premiums in exchange for a relatively large death benefit.

Do you understand insurance as investment or expense?

In fact, over the last 50 years or so, LIC has taught Indians everything other than insurance. We all understand insurance as Tax Saving Instrument, Investment Tool but do we understand Insurance as Insurance. You must be surprised by our sentence, but that is the hard core fact of life.

What is insurance and why we need insurance?

What is Insurance & why we need Insurance is normally misunderstood by Indians. Most of the time, when we ask any investor about his investment portfolio, he/she invariably lands up saying that we have investments in some sort of insurance policy in LIC, ULIPs, Endowment Policy, Money Back Policy etc.

Why is insurance important as a risk management tool?

Insurance is an important element of financial planning. However, more so as a risk-management tool rather than an investment. It is in one’s own interest to secure and insure his health, wealth and property. Tracing back in time for a few years, insurance policy was considered to be useful to safeguard the revenues in the future.