There are many financial and insurance products available in the market where an investment can be made in the hope of higher returns
In India the most popular product is Bank FD but very few peaple may aware in our country about the importance of life insurance. Although life insurance is very important and useful to secure the future of the investor and their family members. It is very painful that still people may think that life insurance is an investment product and they are not keen to take any insurance policy. In India many of their have mind set that insurance is not necessary but other hand if we think in our country many of the people have not enough money to live their life so from where they have to keep spare money to take an insurance policy.
According to the great economists first of all a person has to separate his savings from his salary after that one has to make his planning for their expenditure but the concept of general peaple in India is just like they spend their income in their expenditure first if any amount may left surplus then they think over saving.
In our country if peaple may think for saving they think for fixed deposit only. FD is a purely investment product for saving purpose it can be made for different tenures.
If FD is made for saving purpose so the investor has to pay the income tax on interest earned on the FD if exceeds Rs 10000 in a financial year.
The FD is made from 7 days to 10 years. If the investor will be in need of money during the tenure of the FD he may close the FD and get back his money with some reduced interest.
If FD is done for the purpose to save of income tax under 80c so the FD has a lock in period of three years.
FD is work on the principle of "Create and Save"
Means the investor first has to create the fund then utilise the funds.
As for as in concern of investment in insurance it works on the principle of " save and create "
Means in insurance the investor first save the fund through Sum Assured then the investor create the fund by paying premiums
Risk cover upto the SA from the date of FPR (first premium receipt.)
However, both life insurance and fixed deposits in bank is necessary for different needs.
Fixed deposits is an investment products. Investment in fixed deposits is for fixed tenures as per investor's convenience and get attractive returns at maturity. Normally, banks do not allow to withdraw before a given maturity date. But, with prior notification to bank allow to withdraw the fixed deposits.
On the other hand, life insurance is an insurance product which you buy from a particular insurance provider or company by paying a specific amount of money as premiums. A life insurance policy provides an assured amount of sum to a nominated individual upon the death of the insured person. Life insurance policies are normally divided into two types –
whole life insurance
term life insurance policies.
The investor can buy these policies for different tenures based on their requirements. These policies are not only provides risk coverage, it can also provide to pay off the medical bills, fund for children’s education and marriage or plan for their retirement.
Benefits of investing in fixed deposits
Fixed deposits are savings products offered by banks and the investor can enjoy a wide range of benefits by investing in them.
Fixed deposits encourages people to save for a fixed tenures. It provides higher interest rates as compared to investing in a normal savings account.
The investor can get assured returns on the investments provided it doesn't withdraw prematurely.
Fixed deposits allowes to choose the interest payment options either at maturity or annually or monthly based on the term of chose.
FD comes with flexible investment tenures from 7 day to 10 years.
Benefits of buying life insurance
Like fixed deposits, life insurance has also its own set of benefits. It comes with the following benefits:
Life insurance policyholders can avail tax benefit under section 80C ,80D and 10(10D) of the Indian Income Tax Act, 1961.
Life insurance provides risk coverage and takes care of the nears and dears ones even in your absence.
Life insurance coverage lasts for longer duration, more than the premium paying period.
Facility to choose as per the requirements a wide range of plans such as term plan, whole life plan, senior citizen plan, retirement plan etc.
Insurance offers asset protection as well as access to cash.
Fixed Deposit Vs Life Insurance – which is the best?
Fixed deposit is always a better option to invest as it is purely designed for investment and savings according to the needs. If the intention is to save for the future so create the fund by investing in FD.
Llfe insurance is an investment to protect the future of the Investor and their family. Life Insurance is made for different purposes for different investors.
FD is an investment that helps to save for the future whereas insurance is something which you purchase for risk protection and protect your family in our absence.
Fixed deposits are best for both short and medium term investments whereas life insurance plans are designed for long term investments.
The investment in FD is minimum for amount of Rs. 1000 whereas in case of life insurance, the minimum premium is different for different plans based on the insured individual’s age, gender, policy term and premium payment condition.
Fixed deposits offer fixed returns on investments on a particular day that is mentioned in the beginning of the deposit. But, investment in insurance under Unit Linked Life Insurance Plans is subject to market risk. The fund value receive by investing in these plans are affected by the prevailing market condition.
Fixed deposits add the habit of savings whereas life insurance plans are purchased out of caring and fear of near and dear may face some risks in future.
Both fixed deposits and life insurance policies can be withdrawn.
Even if there is no tax benefit for investing in fixed deposits, it is an ideal product to invest in if want a fixed returns on the investments So in that case investment in fixed deposit can be the perfect choice. Fixed deposit is the most preferred choice of investment among senior citizens.
In my views FD is a simple and easiest liquidating product of investment whereas life insurance is highly important investment product. It is combination of saving and protection but in our country peaple may not aware the power of the life insurance.
Present government try to mobilise to increase the Importance of insurance in general public by starting small insurance social schemes for all. This scheme is linked with the saving bank account.
The general peaple recognized the governments effort and try to prove the dream of Samradh Bharat Abhiyan.
In India the most popular product is Bank FD but very few peaple may aware in our country about the importance of life insurance. Although life insurance is very important and useful to secure the future of the investor and their family members. It is very painful that still people may think that life insurance is an investment product and they are not keen to take any insurance policy. In India many of their have mind set that insurance is not necessary but other hand if we think in our country many of the people have not enough money to live their life so from where they have to keep spare money to take an insurance policy.
According to the great economists first of all a person has to separate his savings from his salary after that one has to make his planning for their expenditure but the concept of general peaple in India is just like they spend their income in their expenditure first if any amount may left surplus then they think over saving.
In our country if peaple may think for saving they think for fixed deposit only. FD is a purely investment product for saving purpose it can be made for different tenures.
If FD is made for saving purpose so the investor has to pay the income tax on interest earned on the FD if exceeds Rs 10000 in a financial year.
The FD is made from 7 days to 10 years. If the investor will be in need of money during the tenure of the FD he may close the FD and get back his money with some reduced interest.
If FD is done for the purpose to save of income tax under 80c so the FD has a lock in period of three years.
FD is work on the principle of "Create and Save"
Means the investor first has to create the fund then utilise the funds.
As for as in concern of investment in insurance it works on the principle of " save and create "
Means in insurance the investor first save the fund through Sum Assured then the investor create the fund by paying premiums
Risk cover upto the SA from the date of FPR (first premium receipt.)
However, both life insurance and fixed deposits in bank is necessary for different needs.
Fixed deposits is an investment products. Investment in fixed deposits is for fixed tenures as per investor's convenience and get attractive returns at maturity. Normally, banks do not allow to withdraw before a given maturity date. But, with prior notification to bank allow to withdraw the fixed deposits.
On the other hand, life insurance is an insurance product which you buy from a particular insurance provider or company by paying a specific amount of money as premiums. A life insurance policy provides an assured amount of sum to a nominated individual upon the death of the insured person. Life insurance policies are normally divided into two types –
whole life insurance
term life insurance policies.
The investor can buy these policies for different tenures based on their requirements. These policies are not only provides risk coverage, it can also provide to pay off the medical bills, fund for children’s education and marriage or plan for their retirement.
Benefits of investing in fixed deposits
Fixed deposits are savings products offered by banks and the investor can enjoy a wide range of benefits by investing in them.
Fixed deposits encourages people to save for a fixed tenures. It provides higher interest rates as compared to investing in a normal savings account.
The investor can get assured returns on the investments provided it doesn't withdraw prematurely.
Fixed deposits allowes to choose the interest payment options either at maturity or annually or monthly based on the term of chose.
FD comes with flexible investment tenures from 7 day to 10 years.
Benefits of buying life insurance
Like fixed deposits, life insurance has also its own set of benefits. It comes with the following benefits:
Life insurance policyholders can avail tax benefit under section 80C ,80D and 10(10D) of the Indian Income Tax Act, 1961.
Life insurance provides risk coverage and takes care of the nears and dears ones even in your absence.
Life insurance coverage lasts for longer duration, more than the premium paying period.
Facility to choose as per the requirements a wide range of plans such as term plan, whole life plan, senior citizen plan, retirement plan etc.
Insurance offers asset protection as well as access to cash.
Fixed Deposit Vs Life Insurance – which is the best?
Fixed deposit is always a better option to invest as it is purely designed for investment and savings according to the needs. If the intention is to save for the future so create the fund by investing in FD.
Llfe insurance is an investment to protect the future of the Investor and their family. Life Insurance is made for different purposes for different investors.
FD is an investment that helps to save for the future whereas insurance is something which you purchase for risk protection and protect your family in our absence.
Fixed deposits are best for both short and medium term investments whereas life insurance plans are designed for long term investments.
The investment in FD is minimum for amount of Rs. 1000 whereas in case of life insurance, the minimum premium is different for different plans based on the insured individual’s age, gender, policy term and premium payment condition.
Fixed deposits offer fixed returns on investments on a particular day that is mentioned in the beginning of the deposit. But, investment in insurance under Unit Linked Life Insurance Plans is subject to market risk. The fund value receive by investing in these plans are affected by the prevailing market condition.
Fixed deposits add the habit of savings whereas life insurance plans are purchased out of caring and fear of near and dear may face some risks in future.
Both fixed deposits and life insurance policies can be withdrawn.
Even if there is no tax benefit for investing in fixed deposits, it is an ideal product to invest in if want a fixed returns on the investments So in that case investment in fixed deposit can be the perfect choice. Fixed deposit is the most preferred choice of investment among senior citizens.
In my views FD is a simple and easiest liquidating product of investment whereas life insurance is highly important investment product. It is combination of saving and protection but in our country peaple may not aware the power of the life insurance.
Present government try to mobilise to increase the Importance of insurance in general public by starting small insurance social schemes for all. This scheme is linked with the saving bank account.
The general peaple recognized the governments effort and try to prove the dream of Samradh Bharat Abhiyan.
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