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The key is "term insurance" . I'll explain : In India, there is something called moneyback insurance , unit linked insurance plans (ULIPs) etc. All these combin
by vmurthy 4y ago
The key is "term insurance" . I'll explain :
In India, there is something called moneyback insurance , unit linked insurance plans (ULIPs) etc. All these combine the (worst) features of investments and insurance - they are too costly, don't give much returns and certainly don't give enough cover. I have advised people I know not to touch these. Instead, use a combination of term insurance + any other instrument (like equity mutual funds or bonds or even bank deposits)
Term insurance is just that : if something happens to the insured, his/her family get the benefits .
- beardyw 4y agoAlso, in the UK at least, there are Whole Life policies which pay out whenever you die regardless of any term. Once again under the covers there is an investment plan based on how long you are likely to live. There are also plans which aim to pay off a mortgage, so the insured sum decreases. Term insurance is the nearest you get to other kinds of insurance - if nothing goes wrong there is no payout. However typically [1] I believe the insurer cannot cancel as long as you pay the premiums. [1] As always, check the contract!