life insurance vs term insurance vs health insurance
traditional life insurance: endowment policy
insurance coverage + savings
return on 4% (inflation rate 6-8)
FD rate just above inflation rate.
saving bank interest rate towrds inflation rate justbaove or below.
Premium = insurance coverage +savings
benefits: return on maturity
accidental coverage: Personal accidents + natural death
Term insurance :
only for insurance coverage =
benefits: Personal accident
Personal Accident policy:
only on accident expires after 1 year.
annual payments just like regular insurance but low
premium rate difference term and endowment
30 years endowment plan for 1 cr sum = 1lakh per annum total 30lakhs
30 year term plan8500 annual to cover 1 crore risk coverage only on death, disability, accident
personal accident policy 100Inr o cover 1 lakh – PM modi scheme pmjjby (Pradhan Mantri Jeevan Jyoti Bima Yojana)
, but only on accidental death
only covers medical expenses. All the medical claims if in case of hospitalization in prescribed
term 1 year or 1+
no annual payment:
insurance means: risk coverage.
no death benefits.
foundation of finance :
you have to park some amounts not 10% its 100%. (its better to invest somewhere), tax benefits on insurance premium