insurance vs investment
TRANSCRIPT
Insurance Vs Investment
Insurance
• Insurance is meant for life protection for the dependants
• Insurance should be taken as pure term policy
• Maturity amount from Endowment, money back, whole life term policies are not sufficient, say after 20 yrs @ the prevailing interest rate
Term Policy Benefits
• Term policy protects our family for long term in our absence
• Huge sum assured policy can be obtained at nominal premium
• Premium will be same through out the coverage period
Protect your family from all RISK –Term Policy
• Protection against sudden absence
Closure of your existing policy
• Check with your advisor for closure of insurance policy
• Take a term policy
• Then close the existing traditional policy
• Invest part of the premium you have been paying for your closed insurance policy into new Mutual funds
Example
Insurance policy Traditional
Sum Assured 500000 Term 20 years
Premium 29560 Age 30
Premium paid Surrender value Current loss
After 3 years 87794 36062 51732
After 4 years 116911 70938 45973
After 20 years 591200 Maturity amt < = 1100000
Close the old policy & take term policy for remaining 17 years
• Out of the yearly premium of 29560,pay 9000 for term policy
Insurance policy Term policy
Sum Assured 2500000 Premium 9000
Premium paid
After 17 years 153000 Maturity amt
Nil
Mutual fund for compounding your MONEY
Mutual Funds
• Invest remaining 20000, in a monthly installment of 1650
• Ex 1 – SBI pharma fund – G
Per month 1650
Expected return 15
Fund value after 17 yrs @ 15%
1374835
Fund return since inception
22.69
Calculating fund value @ 22%
2802944
Amount invested 336600
Ex 2 - Reliance Equity opportunities fund – G
Per month 1650
Expected return 15
Fund value after 17 yrs @ 15%
1374835
Fund return since inception
21.5
Calculating fund value @ 22%
2529602
Amount invested 336600
Total money invested as per new plan for 17 years
• If continued invested in your old plan
Maturity value
Term Insurance investment
153000 Nil
Mutual fund Investment
336600 >2500000
Total Investment 489600 >2500000
Traditional Ins policy
Maturity value
Invested amount 502520 <1100000
Do you want to be a loser or winner
Choose your direction ?
Be a winner
