providing security and protection in terms of investment
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Hi,
I could not understand "security and protection in terms of investment". As far as i know, there is no 100% protection in investment linked insurance products. And if there is such product, returns are nominal.
Which product or insurance provider to choose, is completely at ur discretion.
Since I am associated with Bajaj Allianz, I am providing example in their products. This is just for the purpose of understanding.
Assume a persons age is 30 and wants life insurance as well as investment growth.
Take a Term Plan (with return of Premium on Maturity)
Insurance Cover: Rs.10,00,000
Term: 35 Years
Annual Premium: Rs.15,000 (approx)
Maturity Value: Rs.5,00,000 (approx)
Take a ULIP (35% Equity Fund, 35% Index Fund, 30% Bond Fund)
Insurance Cover (20times): Rs.17,00,000
Term: 35 Years (You may stop paying after 3rd year, however growth will vary accordingly)
Annual Premium: Rs.85,000
Maturity Value: Between (6%) Rs.70,00,000 and (10%) Rs.1,69,00,000
Summary:
Tota Premium: 1,00,000 per annum x 35years = Rs.35,00,000
Term: 35 Years
Maturtiy Value: (a)Rs.5,00,000 + Rs. 70,00,00 = Rs.75,00,000
(b) Rs.5,00,000 + Rs.1,69,00,000 = Rs.1,74,00,000
Insurance Cover: Rs.10,00,000 + Rs.17,00,000 = Rs.27,00,000
This is just my perspective of balancing insurance and investment. Instead of ULIP you can invest in mutual funds.
Hope this helps.
Regards