Under life insurance, the person is assured of getting money if something unwanted happens to the person. Under life insurance, in the event of the death of the earning member of the family, the rest of the members are helped.
Image Credit source: Representational Image
Under life insurance, the person is assured of getting money if something unwanted happens to the person. Under life insurance, in the event of the death of the earning member of the family, the rest of the members are helped. However, despite the benefits available to the family or the nominee of the policyholder under the life insurance policy, some may think that the life insurance policy is not a good source of savings. Which option would be better, life insurance policy or savings scheme, this question also remains in the mind of many people. Let’s understand about this.
Security
In savings through life insurance, the person is guaranteed to get complete protection against the risk of death. Apart from this, in case of death, the entire assured amount is paid in life insurance. Whereas, in other savings schemes, only the amount saved is paid with interest.
market investment
In life insurance policy, a person gets only insurance. But the person also gets cover in the savings plan. And with this they also allow investment of their money in different market mediums.
premium
In life insurance, a person has to pay a cheap premium. At the same time, the premium in the savings scheme remains expensive.
maturity benefit
There is no maturity benefit available in a life insurance policy. Whereas, in a savings plan, the investor gets the maturity benefit.
Return
In life insurance policy, the insured person does not get any return. On the other hand, the returns in a savings plan depend on the plan and risk appetite.
Lastly, both life insurance plans and savings plans are good options for you to invest your money. If you have a financial need in the near future and you need a direct insurance plan that can cover you family in your absence, then you can buy a term insurance plan. Whereas, if you are buying such a product, in which not only you get the cover. Rather, with this you also get the option to increase your savings, so that you can achieve your future goals. So, buying a savings plan would be a better option.
: Language Inputs