Life Insurance vs. Mutual Funds
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Life insurance is designed to provide missing income
to your beneficiary upon your death.
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Mutual funds are investment vehicles in which
money is pooled from a large number of investors and spread over investments like stocks or bonds.
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The main purpose of life insurance is to provide financial security for your loved ones upon your death.
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It provides a living
benefit to bet inflation over a long period of times.
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It is a mode
of saving in which beat on your life.
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It is a process of Wealth creation by parking savings in Mutual
funds.
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A
guaranteed bonus, sum assured will be payable
upon maturity of a plan.
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Mutual fund is fully subject to market risk.
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In
general Life Insurance plan give annually 6% to 7%
return due to it is a non risky.
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SENSEX and NIFTY provides 17% CAGR from its incorporation. This is
much higher than a traditional life
insurance plan.
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Insurance
sector regulated by “Insurance Regulatory Authority Of India”
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Mutual Funds are regulated by “Stock Exchange
Board of India”
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Main
purpose of life insurance is to protect some ones valuable life.
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Main purpose
is investing in equity through professional managers.
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