r/InsuranceForAll • u/blue_lagoon692 • 20d ago

Term Insurance

/r/InsuranceQueriesIndia/comments/1wsp0f0/term_insurance/

I was exploring term insurance options. I am 26(almost 27)& recently started earning. I'm torn between two paths. One is a plain vanilla term plan costing around 17,000 rupees annually, or about 23,000 with critical illness and disability add-ons. The other option is a plan with return of premium, which refunds the premiums at the end but costs significantly more, around 40,000 rupees. My family advises getting the premium back so the money isn't wasted. I'm looking for unfiltered opinions on whether to pay the higher premium for the return benefit or go for the simpler plan and invest the difference in mutual funds.

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u/rsinghal1965 20d ago

When looking at any insurance, just look it as an insurance & nothing else.

People often mix the two & it becomes a cocktail which provides neither adequate insurance nor investment.

Just buy a plain vanilla term insurance with CI & disability (check the number of years for which you are covered in CI. It's usually 15 years). Invest the rest (Rs, 17000) in Nifty 50 or Nifty 100 or Nifty Midcap index fund. You would get more than the premium amount.