Every year, millions of Indians buy life insurance policies to save tax. These policies neither give good returns, nor offer adequate cover to the policyholder. They eventually become millstones around the necks of the buyers, preventing them from investing for other financial goals.

Not many insurance buyers understand this. Most don’t even understand the features and benefits of the policies they have bought. The tax deduction is the paramount concern. Experts say insurance policies are the worst instrument among all tax-saving options. A 20-year plan will barely offer 6% returns to the buyer. This will not even beat inflation.

The only insurance policy worth buying is a pure protection term plan. These plans only cover the risk of death and do not have a maturity value. As a result, these plans have very low premiums. A 30-year old non-smoker can buy a life cover of Rs 1 crore for as little as Rs 7,500 a year. Srigadi plans to buy a term plan this year after he closes the three endowment insurance policies.

Smart tip : Don’t mix insurance with investment. Buy low-cost pure protection term plans for life cover.

We have mobilized asset under various mutual funds over six crores+. We are well equipped with internet to address your problems and render investment & income tax related services.

So, join mutual fund investment or tax saving schemes under our guidance at earliest to grow your investment along with peace of mind. The earliest you start investing, more compounding growth you will have in future.