Term Insurance over Other Investment Options: Protection of your dear ones is the main objective of term insurance India in case anything unexpected happens to you. It can also help policyholders in meeting the costs which come along with life’s milestones such as education and marriage of a child. During illnesses, it can come to your rescue. In fact, it also works in your favor during the post-retirement phase.
Below PolicyBoss describes how online term insurance India scores high over famous investment options such as fixed deposits, mutual funds, and public provident fund:
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Term Insurance Policy against Fixed Deposits
Fixed deposits do not offer protection and life coverage, whereas life insurance provides both. FDs fulfill life’s short-term goals but insurance offer family’s financial protection depends on the policy type you select. Based on financial objectives, the policy can work in the long term also.
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Term Insurance for Whole Life against Public Provident Fund
Under life insurance, in case insured person dies after paying a just single premium, the beneficiary will get the entire amount of sum assured. However, in case of a PPF account, the beneficiary will only receive the money which is deposited in the account with interest.
PPF is a long-term investment, but a person can select either a long or a short term based on his or her requirements. Life insurance policy is more liquid and policyholder can opt for policy loans, partial withdrawals or even surrender a plan in case of an emergency and get the surrender value.
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Term Insurance Policy against Mutual Fund
Mutual fund investment is made in equity or debt and in one fund only. On the other hand, the investment is done in a number of schemes under life insurance. The mutual fund does not give the benefits of protection and life coverage. Term plan gives financial protection and works as an investment tool.