Reality of Money Back, Guaranteed Income, Endowment Insurance plans

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Endowment and money-back insurance policies are financial products that combine elements of insurance and investment. However, they often fail to provide substantial benefits in either aspect. It's crucial to distinguish between insurance and investment when considering these policies.

Insurance serves the purpose of providing financial protection against specific risks, such as death, disability, or illness. On the other hand, investments are vehicles for growing wealth over time. Combining the two can sometimes dilute the effectiveness of each component.

Endowment policies typically involve paying premiums over a specified period, and upon maturity or in the event of death, a lump sum amount is paid out to the policyholder or their beneficiaries. Money-back policies, as the name suggests, provide periodic payouts during the policy term along with the maturity benefit.

While these policies offer some level of savings or investment opportunity, the returns are often lower compared to other investment options available in the market. Moreover, the insurance component may not offer sufficient coverage or flexibility to meet individual needs.

In contrast, term insurance focuses solely on providing a death benefit within a specified term, without any investment component. It offers a higher coverage amount at a lower premium compared to endowment or money-back policies. The primary objective of term insurance is to ensure financial security for dependents in case of the policyholder's demise during the term.

Financial experts often recommend term insurance as the preferred life insurance option for most individuals. The coverage amount should ideally be substantial, typically at least 25 times the annual expenses of the insured individual. This ensures that in the event of their untimely death, their family members are adequately protected financially to maintain their standard of living and meet ongoing expenses.

In summary, while endowment and money-back insurance policies may seem attractive due to their combination of insurance and investment features, they often fall short of delivering optimal benefits in either aspect. It's advisable to prioritize term insurance for basic life coverage and consider separate investment avenues for wealth accumulation and growth.

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#financeBoosan #usefulinformationBoosan
Stock Market, Mutual Funds, Investments, Personal Finance, Make Money Online

[finance.boosan]

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[CyberPsychGaming]

When Boosan says "Detailed ah, data oda indha video la paapom".. I'm pinish ❤💥

[Anusha-vxvl]

I appreciate that you support your facts with detailed math. The idea to include inflation adjustment does give a very practical perspective which we mostly tend to forget while thinking about returns.

[dharansspecialityorthoclin]

One of the most useful YouTube channel for life and investment
Thank you so much 🙏🏽

[jk_thoughts]

Best Analysis & Wonderful Clarity video in Tamil Community ❤❤❤

[ithuorusirapanavideo]

I would say this is the best video from your channel

[rogertrec]

One of your best videos.. super informative..

[lootscotvin]

Most of all your videos are my eye opening. Because you giving more detailed things with data. And finally I con’t able to choose one proper health and term insurance. Will see I try to choose one good policy. You given more about those insurances. If possible, can you connect with DM for a while. Unga free time la

[yasirasarudheen]

Same pinch bro.. I just explanined same thing to my relatives few months ago. To make it simple, i even tried to compare bank FD returns but they didn't convinced. They bought similar insurance plan and paying 1 lack every year. Now, I shared, your video also by knowing that they're not going to change. I have very bad convincing skills :)

[ebineshv]

Bro put a video on how to review and rebalance the portfolio and when we have to make it

[vidh]

Very well explained. This is an eye opener for many people who are trying to get fooled by these kinda useless pension plan n endowment policies. I have also paid for 2 years and recently understood that it's not worth. Planning to stop paying for these policies even though I'll lose money. Coz by switching to MF, I'll regain by investing in long term.

One question. Is NPS a good option compared to these kinda private pension plan policies?

[MUTHU]

Hats off ...
Boss be ready. Whole life insurance companies. May be ready to Suie you.
If I hAve seen this video. Three years before saved lakhs.. 😊

[gamingfireemblem]

Everything OK, but policy bazaar is worst, he calls at simultaneously daily 4 times for me, and don't promote bad

[mahesh]

Your analysis and detailed explanation always best👍

[shanthiarumugam-yfeb]

HI Boosan two year before I took the pension plan without calculate the XIRR ratio.. then I realiased it is waste.. after 1st year.. I immediately surrender the policy... though I lost the 1st year premium...Some what i feel now better because.. i have Start invested the same amount in gold or something else.. which gave me better returns
..

[shajandhas]

My experience with policy bazaar is worst, Better use pb for comparing the policies then buy it directly from the insurance site. 24/7 support mentioned in pb is just a name sake. Beware!

[ravimtts]

I took an endowment insurance for a lakh 30 years ago and got around 3.6l on maturity. Then I found that I paid less TDS and just had to pay 3.8L as TDS with penalty. This is the use of insurance to me.

[StockmarketE]

Hi bro. If you are buying US stocks, which stock should you buy and which meter should you check?

[ashwinshan]

How did you calculate the Investment Growth, csn you please tell me the excel formula for it

[noushad]

thanks for the information much needed