Term life serves you better than endowment policies

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We compare the term life policy of a leading insurer to the money back policy of the same insurer to illustrate why term life policy works better for you. In both cases we take a person born on 1/1/1981 (30 years old) as our example. We take a tenure of 25 years for both and sum assured of 50 Lakhs, assuming the income to be Rs 8 lakhs pa.
Annual Premium
Term Life Policy
Money Back Policy
15,545
260,630
15+ times
The premiums for the money back policy are unaffordable for this person. The most that he can afford is about 30,000 which in the money back policy can buy him only about 5 lakhs of cover, which is clearly not enough for the family
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If the person were to buy term life policy, and put the difference of premium in a simple instrument like fixed deposits, he will be better off monetarily if he survives the period.
On both counts – adequate cover and savings in the event of survival, term life stands out as significantly superior.
Mixing investment with insurance, defeats the purpose of insurance – a sum assured to take care of the expenses that the survivors will need.
Insure with term life policy and invest the difference in premium with instruments like mutual funds, PPF, NSC, etc. You will be better off and your insurance needs will be met.

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Term life serves you better than endowment policies

  1. 1. When a catastrophe happens….…. You leave liabilities behind “Premature death is a low probability but high impact event,which you do not want your family to suffer from. This is the key reason for taking a life insurance policy” SecureNow
  2. 2. What you need is far more than what you have…..You need to provide protection to the extent of 10 times yourannual incomeAt a young age, you haven’t had time to build assets and a corpusthat can take care of the liabilities.You need an instrument that can deliver several times its cost interms of real cash for your survivors You need to leverage your resources
  3. 3. Term Life serves you better than Endowment PoliciesWe compare the term life policy of a leading insurer to the money back policyof the same insurer to illustrate why term life policy works better for you. Inboth cases we take a person born on 1/1/1981 (30 years old) as our example.We take a tenure of 25 years for both and sum assured of 50 Lakhs, assumingthe income to be Rs 8 lakhs pa. Term Life Policy Money Back PolicyAnnual Premium 15,545 260,630 15+ times SecureNow
  4. 4. The premiums for the money back policy are unaffordable for thisperson. The most that he can afford is about 30,000 which in the moneyback policy can buy him only about 5 lakhs of cover, which is clearly not enough for the family If the person were to buy term life policy, and put the difference of premium in a simple instrument like fixed deposits, he will be better off monetarily if he survives the period. On both counts – adequate cover and savings in the event of survival, term life stands out as significantly superior. Mixing investment with insurance, defeats the purpose of insurance – a sum assured to take care of the expenses that the survivors will need. SecureNow
  5. 5. Endowment Policy Invest the Difference difference Premium = 10 + times Directly Term Life without Premium linking to InsuranceTerm Life Premium Insure with term life policy and invest the difference in premium with instruments like mutual funds, PPF, NSC, etc. You will be better off and your insurance needs will be met.
  6. 6. Term Life insurance combined with investments in mutual funds is superior to buying ULIPsTerm Life insurance combined with investments in tax saving instruments like PPF, NSC, etc. is superior to buying money back policies Term Life insurance is the only life insurance which provides you with a high leverage (over 350). The other life insurance options kill the leverage dramatically to under 25 Leverage = Sum Assured ÷ Annual Premium SecureNow
  7. 7. Term Insurance is the onlyrealistic option that you have
  8. 8. Get Your Term Life Insurance Cover Now!
  9. 9. Fill in your details on our inquiry form. We will call you back!SecureNow Insurance Broker Private Limited 3rd Floor, 29 Hauz Khas Village, New Delhi 110016 Web – www.securenow.in SecureNow

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