Investment Insurance Policy - Mixing Insurance with Investment

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Investment Insurance Policy
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Mixing Insurance with Investment
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• Wearing a helmet while driving is inconvenient
  but covers one from damage in an accident.
• Reaching an hour or two early before the
  scheduled departure of flight prevents one from
  missing the flight though time is wasted just
  sitting at the airport.
• Similarly Insurance provides financial protection
  against unexpected events and Life insurance is
  meant to offer financial protection to dependents
  in the unfortunate event of ones death.
• Its purpose is to enable ones dependents to
  maintain their current life style and pursue
  their life goals. But selecting life insurance
  products can be confusing.
• There are plans that promise to return a fixed
  sum, endowment and money back plans, there are
  whole-life plans, plain vanilla term plans.

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• There are also products like unit-linked
  insurance plan (Ulip) where the policyholder can
  choose to invest in different securities and get
  market-related returns.
• In this article we shall cover how to calculate
  return on insurance policy called Internal rate
  of return (IRR), find return of endowment, money
  back policies, compare insurance cover and
  investment if one buys term plan with ppf ,
  difference between insurance and investment.
• Overview of Life Insurance Policies
• Life Insurance Plans offered by insurers can be
  classified into following categories
• Term Insurance is for a specific period of
  time, one can select the length of the term for
  which one wants the coverage right from one year
  up to 35 years. Premiums of this policy are fixed
  and does not increase during the term period of
  ones policy

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• Money Back Plans Similar to Endowment plan with
  basic difference that unlike endowment plans
  where benefits are disbursed at end of policy
  term, money back policies pay-out a fixed
  percentage at various interval. A portion of the
  sum assured is paid out at regular intervals. If
  the policy holder survives the term, he gets the
  balance sum assured. Guaranteeing a regular flow
  of income at fixed stages in our lives
• Tax benefits on Investment Insurance Policy is
  available.
• Premiums paid towards a life insurance policy
  qualify for tax deductions under Section 80C with
  a limit of 1 lakh in a financial year.
• Otherwise, they will not be eligible for tax
  benefits under section 80C and 10 (10D). Before
  1st April 2012, the mandated cover was five
  times the annual premium.
• Source http//www.bemoneyaware.com/blog/i
  nsurance-investment/

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