Pure Term Life Insurance

Pure term life insurance is the BEST insurance product available in India as it covers your life at very cheap cost. Ideally one need life cover of 10 times of their annual salary which only term insurance can provide you. One should divide their life cover in more than one term insurance plans. Say if your insurance need is Rs.50 lakhs than buy 2 term insurance plans of 25-25 lakh each.

This has two advantages.

• You will diversify the risk of rejection by dividing your life cover in 2 term insurance plans.
• During your retirement/old age when your dependents become financially free and you become liability free, you can discontinue 1 term insurance plans and reduce your life cover and premiums also. If you have invested in just 1 term insurance plans than this won't be possible.

Also please note that insurance is not about money, so never think of returns from insurance and avoid investment in any insurance cum investment product.

Buy term and invest the difference

Remember Insurance and investment are two different things. Term insurance is available at very lower premiums which will provide you high life cover and the difference of premium you can invest in mutual fund. Insurance cum investment products will give you just 5 to 10 times life cover than the annual premium which is very small in comparison to term insurance plans.

All the insurance cum investment financial products in India are very costly and should be avoided. Remember that, you need a pure term life insurance policy to cover your life, mutual funds to build a wealth and PPF to save lots of tax under section 80c.

Pure Term Life Insurance

Pure term life insurance is the BEST insurance product available in India as it covers your life at very cheap cost. Ideally one need life cover of 10 times of their annual salary which only term insurance can provide you. One should divide their life cover in more than one term insurance plans. Say if your insurance need is Rs.50 lakhs than buy 2 term insurance plans of 25-25 lakh each.

This has two advantages.

• You will diversify the risk of rejection by dividing your life cover in 2 term insurance plans.
• During your retirement/old age when your dependents become financially free and you become liability free, you can discontinue 1 term insurance plans and reduce your life cover and premiums also. If you have invested in just 1 term insurance plans than this won't be possible.

Also please note that insurance is not about money, so never think of returns from insurance and avoid investment in any insurance cum investment product.

Buy term and invest the difference

Remember Insurance and investment are two different things. Term insurance is available at very lower premiums which will provide you high life cover and the difference of premium you can invest in mutual fund. Insurance cum investment products will give you just 5 to 10 times life cover than the annual premium which is very small in comparison to term insurance plans.

All the insurance cum investment financial products in India are very costly and should be avoided. Remember that, you need a pure term life insurance policy to cover your life, mutual funds to build a wealth and PPF to save lots of tax under section 80c.

The Simple & Most Powerful Financial Planning Formula

Term Insurance + Mutual Funds (Equity & Debt) + PPF


The most simple and the most powerful financial planning formula to build wealth , save tax and cover your life (insurance) is,


Term Insurance + Mutual Funds (Equity & Debt) + PPF


No other financial product is as cheap and as effective than the above simple combination. Term insurance will provide you adequate Life cover. PPF will save your tax and Mutual fund can build enormous wealth for you in the long run.

Importance of Term Insurance


One is never sure about life. We often come across people claiming that nothing is going to happen to them; that they are too young to pass away. But do they really know what the future holds for them? Individuals need to insure themselves to secure the future of those who are dependant on them; especially if they happen to be to only earners in thire family. You wouldn’t want your family to go through hardships or rely on others/relatives, etc. This, in fact, is the MAIN reason why one should buy an insurance policy! Also TAX saving is the another added advantage of term insurance.


Public Provident Fund

PPF is one of the best tax saving financial product in India. The mimium limit of PPF is Rs.500 and maximum limit of PPF is Rs.70,000 per annum which is tax free under section 80C and not only this but it also gives you 8% annual compounded returns which is best in India.




Mutual funds 

Mutual funds in India are so much professionally managed, highly regulated by SEBI and cost effective (Entry & Exit loads are 0% after 365 days).No need to learn direct equity investing now a days. Equity mutual funds will do all the job for you. Equity multual fund can build enormous wealth for you in the long run that you can fulfill all of your and your child’s financial goals. 

The Simple & Most Powerful Financial Planning Formula

Term Insurance + Mutual Funds (Equity & Debt) + PPF


The most simple and the most powerful financial planning formula to build wealth , save tax and cover your life (insurance) is,


Term Insurance + Mutual Funds (Equity & Debt) + PPF


No other financial product is as cheap and as effective than the above simple combination. Term insurance will provide you adequate Life cover. PPF will save your tax and Mutual fund can build enormous wealth for you in the long run.

Importance of Term Insurance


One is never sure about life. We often come across people claiming that nothing is going to happen to them; that they are too young to pass away. But do they really know what the future holds for them? Individuals need to insure themselves to secure the future of those who are dependant on them; especially if they happen to be to only earners in thire family. You wouldn’t want your family to go through hardships or rely on others/relatives, etc. This, in fact, is the MAIN reason why one should buy an insurance policy! Also TAX saving is the another added advantage of term insurance.


Public Provident Fund

PPF is one of the best tax saving financial product in India. The mimium limit of PPF is Rs.500 and maximum limit of PPF is Rs.70,000 per annum which is tax free under section 80C and not only this but it also gives you 8% annual compounded returns which is best in India.




Mutual funds 

Mutual funds in India are so much professionally managed, highly regulated by SEBI and cost effective (Entry & Exit loads are 0% after 365 days).No need to learn direct equity investing now a days. Equity mutual funds will do all the job for you. Equity multual fund can build enormous wealth for you in the long run that you can fulfill all of your and your child’s financial goals. 

Stay away from Insurance agent

The only job of insurance agent is to sell the financial products of the company for which he is working. After all insurance companies are not here to do charity they are here to do business. Term insurance is the only best product being sold by insurance companies.

Insurance agent will try to sell only those products in which he will get highest commission. Once I requested for insurance on a reputed insurance company website following day I got call from a agent. The first question he asked me was how much you can invest? Though my requirement was insurance, he never spoken about term insurance.

Why insurance agents are reluctant to sell term insurance is because they will not get much commission on it. Insurance agents are so experts, they will explain you a product in such a way that you will be convinced that you are buying a good product though you are buying a product in which insurance agent will get more commission.

Don't get fooled by below mentioned phrases of Insurance agent.

• Whole life plan is the best product for you.
• You will not get any returns in term insurance.
• ULIPs will double your money in 3 years.
• Pension plan is best for retirement planning.
• This child future plan will give u guaranteed return.
• This insurance cum investment plan is best in market.
• All of my clients have taken this money back plan.

So beware of such sweet words from insurance agents. Be alert before buying a product from insurance agent, do some homework on your own. Read reviews on net, ask financial experts on various financial forums. Take your own decision and don’t rely on insurance agent’s advice. There is no role of insurance agent in successful financial planning.

Stay away from Insurance agent

The only job of insurance agent is to sell the financial products of the company for which he is working. After all insurance companies are not here to do charity they are here to do business. Term insurance is the only best product being sold by insurance companies.

Insurance agent will try to sell only those products in which he will get highest commission. Once I requested for insurance on a reputed insurance company website following day I got call from a agent. The first question he asked me was how much you can invest? Though my requirement was insurance, he never spoken about term insurance.

Why insurance agents are reluctant to sell term insurance is because they will not get much commission on it. Insurance agents are so experts, they will explain you a product in such a way that you will be convinced that you are buying a good product though you are buying a product in which insurance agent will get more commission.

Don't get fooled by below mentioned phrases of Insurance agent.

• Whole life plan is the best product for you.
• You will not get any returns in term insurance.
• ULIPs will double your money in 3 years.
• Pension plan is best for retirement planning.
• This child future plan will give u guaranteed return.
• This insurance cum investment plan is best in market.
• All of my clients have taken this money back plan.

So beware of such sweet words from insurance agents. Be alert before buying a product from insurance agent, do some homework on your own. Read reviews on net, ask financial experts on various financial forums. Take your own decision and don’t rely on insurance agent’s advice. There is no role of insurance agent in successful financial planning.

Worst Financial Products in India

Investment + Insurance = Worst product.

What I mean to say is any product which is a combination of both Investment and Insurance can never be a good product. Because Insurance will cost money to you, Investment charges will be separate and less amount will go towards actual investment hence it will be a costly product. Never mix insurance with investment or buy any financial product which is the combination of insurance and investments.
Understand your insurance and investment need for insurance Term Insurance is the good product and for Investment mutual fund is the ideal product.

Below are the lists of such product which is combination of investment and insurance. These products are very costly so avoid such products.

• Whole life insurance plans
• Money back insurance plans
• Pension / retirement plans
• ULIPs (Unit Linked Insurance Plans)
• Child future plans
• Any INVESTMENT CUM INSURANCE product

ULIPs and other similar products are costly and gives you life cover of 5-10% of annual premium which nothing compare to term insurance. Term insurance gives you enough life cover with low premium, so take term insurance and invest the difference in mutual fund.