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Q.

I am a salarised person having a salary of 38000 p.m. , I have 2 insurance policies of 2 lakhs each by LIC, now I want to invest some money in Market plus in LIC. will it be adviseable for me or suggest some other plans as I only want to go with LIC.

Asked by Dheeru Yadav, 12 May '09 12:44 pm
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Answers (3)

1.

Insurance is not a investment .It is a risk covering instrument. By paying a premium to insurance company ,you transfer the risk financial inflow to the insurance company. Simply saying you need to take a cover which will take cover of your family for the rest of their life.
The only insurance you need is term insurance only .In term you dont get anything if you survive the paying period ,but advantage is it is dead cheap. For a 25 lakh cover in LIC you just have to pay a annual premium of 8000,even less in private insurers.Simply forget all other insurance policies.They neither give risk cover ,nor do they give good return (Insurance returns will not go above 6%).
In your case :
Minimum Insurance needed =12 times annual income = 55 lakhs
LIC Term policy premium for 50 lakhs = 16000 only
Invest the rest in Bank FD's or mutual funds depending on your risk taking ability.
Dont put your family's future in risk by staying invested in these stupid policies
Answered by Ravindra Bob, 12 May '09 04:32 pm

 
  
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2.

You are making the MOST COMMON MISTAKE . INSURANCE IS AN EXPENSE, NOT AN AVENUE FOR INVESTMENT. You should only take PURE TERM COVER. For investments -PPF, SIP in MUTUAL FUNDS / DIRECT EQUITY are better options. Insurance will never make you RICH , it will only make you POOR. Life Insurance is for your dependants. PURE TERM is the cheapest & best. Your money will grow faster in other avenues.
Answered by RANJAN KARNAD, 12 May '09 12:56 pm

 
  
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3.

Study the MIS offerred by Post Office & also the PPF in post office.
Answered by shekhar matta, 12 May '09 12:46 pm

 
  
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