In this Podcast Samyuktha & Jayalakshmi talk about whether insurance can build wealth.

Do you look at Insurance as an Investment? You’re not alone, most people do. For a lot of investors, insurance ticks the boxes of risk management, returns, and tax benefits. What happens when you combine insurance and investment?

Jaya and Sam look at the four different types of insurance policies and how they fare as investments. They also analyse whether these are good products for risk management. The four types of life insurance policies are:

      1. Whole Life Insurance
        1. The whole life has a guaranteed cash benefit and protects the insured person through the duration of their life.
      2. Unit-Linked Insurance Plans (ULIPs)
        1. ULIPs deliver market-linked returns and offer insurance cover for a specified term.
      3. Money-Back Policies
        1. We also delve into the impact of the Finance Minister’s announcement in the Union Budget regarding ULIPs. Money-back policies offer predictable fixed returns for a fixed number of years.
      4. Term Life Insurance
        1. Term insurance has no return component and protects the insured for the duration of their working life.

Our analysis finds that combining insurance and investments doesn’t yield the best results. Building wealth from insurance is challenging, tune in to know why!

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