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Insurance — Basics
Buy a pure term plan for protection (10-15x annual income) and invest separately in mutual funds.
Concept
Buy a pure term plan for protection (10-15x annual income) and invest separately in mutual funds.
Term insurance provides a large death benefit at a low premium — if you die, your family gets the sum assured. Endowment plans and ULIPs mix insurance + investment but give low cover (~₹5-10L) and poor returns (4-6%). Keep insurance and investment separate.
हिंदी मेंTerm insurance कम premium में बड़ा death benefit देता है। Endowment/ULIP insurance + investment mix करते हैं लेकिन cover कम (~₹5-10L) और returns poor (4-6%) होते हैं।
Example
See it in action
A 30-year-old gets ₹1 crore term plan for ~₹10,000/year. The same ₹1 crore cover via endowment costs ~₹4,00,000/year — 40x more. Invest the ₹3,90,000 difference in mutual funds and you'll build far more wealth.
हिंदी में30 साल की उम्र में ₹1 crore term plan ~₹10,000/year में मिलता है। Endowment में same cover ~₹4,00,000/year — 40x ज़्यादा। बाकी पैसा mutual funds में invest करें।
Key takeaway
Remember this
Term insurance is the most cost-effective way to protect your family. Never buy insurance as an investment.
Insurance is NOT an investment. Mixing insurance with investment (endowment/ULIP) gives you poor returns AND inadequate cover.
हिंदी मेंTerm insurance family protect करने का सबसे cost-effective तरीका है। Insurance को investment की तरह कभी न खरीदें।
Learn Insurance by doing
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