Term insurance or Life insurance: Let’s Revisit…!

Term insurance or life insuranceWhat do you think you need: Term insurance or life insurance…?

If yes, then think again.

Probably you are mistaken…!

It’s been long taught that you need to keep your investments separate from insurance…!

If this is what you still think then, man you need to think again.


Let me ask,

How good you are in investing yourself…?

How profitable your investments are...?

If can get good returns out of a volatile market like India then you are doing preety well for yourself.

But believe the majority will support the statement:

We don’t know where to start.

Not everybody is an investor. We remain too busy in our professional life that it’s really hard to stay upto date. And if we can’t then we are preparing ourselves to fail.

The way the traditional insurance policy works is probably the best bet then the more recent term insurance.


The biggest reason being term insurance is a pure term plan. Meaning that the premium you pay purely goes in to cover your life. Thus there is no element of investment and no future security.


In the traditional insurance policy whatever you pay, partly goes to cover your life and the rest is invested. Thus on maturity you reap the benefits of your investments rather than losing everything on life cover.


Life insurance will work for anyone who keeps little or no knowledge regarding investments. As that way they will not only protect their life financially but will also save for their future.

What makes life insurance more lucrative…?

Tasty just like my policy

They are:

1. Best investment option,

Your life insurance policy can be your best investment option.

The reason being:

By investing in an insurance policy you not only invest in your life but also make for you future. And all this happens automatically without any extra expense.

By paying premium, you fulfill your ultimate responsibility and this is where the role of your insurance company starts. They set aside a percentage of your premium to cover your life and the rest in some lucrative investment proposal.

These big investment giants usually come across investment deals which you as an individual can never find.

It is not about finding the right opportunity but looking for the right exit. There investment planners always remain on the hunt for the right opportunity and leave when they find worthy.

Thus, what you get in return is the hard work of all the qualified professionals. There is nothing more you could have asked for…!

2. Tax free:

You don't any tax on your policy upto a limit

Your investments are not tax free but the good news is that if your investments are taking the route of insurance policy then you can certainly ditch it.

Don’t worry you are not breaking any law…!


Under income tax act 1960 section 80C and Section 10(D), you are authorized to get tax benefits. In total you can save upto Rs.1.5 lac by simply investing in life insurance plans.


Here is another good news, the proceeds that you receive on maturity are also tax free. Now calculate for yourself how much in total you saved.

3. Risk free return:

You have no risk

Is your investment risk free…?

I am sure it’s not…

Now let me ask,

If you want good returns then are you ready to even lose that …?

In the world of stocks where the market is very volatile, it is very difficult to assess risk. There the prices change in a matter of seconds and if you cannot act fast then I will suggest avoiding such investments.  You can lose everything under such proposals.


If you are of a kind that likes to maintain a conservative approach, then life insurance can be your best possible option. It is healthy, sound and even risk free. Under such plans you only pay premium and it is your insurance company that bears the risk if any. Thus, you stay fully protected.

4. Mortgage protection:

Your house remains insured

Insurance is first and foremost meant to financially protect your family. Any other benefits that you reap out of it, comes later. And one such benefit that you get out of your policy is protection of your assets.

If you have taken any loan against your property then your only wish would be to complete all the EMI’s. You would want to set off your property loan free before you die.


Now the question arises,

How confident you are that you will live that long…?

Nobody can be 100% sure about their future. That’s why you would need a back plan. You would not want your family to be bothered for the loan you took while you lived.


Get yourself insured as the proceeds that they will receive will greatly help them pay off your liabilities.

5. Guaranteed growth:

You are sure to get returns

Come what may, you will get what you are promised. And this is also the beauty of insurance companies that if you play fair then your returns will be guaranteed. This makes insurance the best investment option.

Whatever money the company receives as premium is put to use by investing in shares and bonds. The investment and the risk related to it are borne by the insurance company and the insured plays no role in it. This simply means that if any loss happens then it will be a loss to the company and not to the person insured.


They will reap guaranteed returns from a volatile market.

6. Your perfect financial planner:

Your best financial planner

Your needs may not be the same 20 or 30 years from now. What you dream today may not hold any value in future.

Life before and after marriage is very different, as the family size increase so are the expenses. And if we don’t keep ourselves up to date with their rising demands then no doubt we will run out of budget very soon. And all this would be the result of our bad financial planning.

Though insurance won’t directly help you to keep up with your expenses but it will certainly help your family to maintain a good standard of living even in their hard times.

If you have insurance by your side then all you have to care is about your life cover. Having it enough to support your family for years will be a great financial decision you will ever make.

Insurance is a great financial tool that aids your family in their unfortunate times. Consider buying it as soon as possible, because any delay will only make big holes in your pocket.