9 Replies to “what is better between life insurance and investment in mutual funds?”

  1. Get both if you need life insurance at all. Mutual funds are an investment for your future. Life insurance is in case you don’t have a future. They aren’t related. If you were to die leaving dependents you need to provided for you need life insurance as until they will be independent. For most families that means a 20 year term policy on each parent when the child is born. Then if a parent dies they should have already gotten the child raised and saved for college. Also in 20 years they should have some life savings and other net worth so leaving a widow/widower leaves them doing ok.
    If you have a permanent dependent like a disabled spouse or child you might need a 30 year term policy to get more time to invest and grow net worth.
    I wouldn’t skip getting term insurance when the babies are born but start saving also and buying long term assets and investments.

  2. That depends on your situation. I’m a single person who does not support anyone else, so the best option for me is mutual funds. Mutual funds, if you choose ones that grow, will provide you with extra income whether you’re alive or not. However, be careful in choosing the funds.
    Life insurance is a good option if you have children who rely on you financially – in that case, the life insurance will provide for them in the event that something happens to you. However, that money will only be available once you die.
    The best option for you depends on what you want your money to do for you. I hope this helps!

  3. Essentially, it depends on the objective that you want to achieve – cover or returns. Combining the two objectives and try to achieve them through a hybrid instrument is certainly not good.

  4. It depends on your goal. Are you trying to save for your retirement? or are you trying to protect your family if you die?

    If your wanting to save for retirement go with a Roth Ira which you invest in mutual funds. It has tax advantages. Talk to your CPA.

    If your going for life insurance buy a lot of term for 30yrs and then buy a smalled whole or variable policy to last you your whole life as long as you fund it properly.

  5. it’s depends upon your need. there is no maturity benefit in term products but they are the cheapest product where as other insurance products will be a bit expensive with lower returns, so if u are aiming for short term-higher returns then its better to go for mutual funds or else insurance, if u dont have till now

  6. both are equally good, but impossible to compare, as one is an insurance product and the other is an investment. One has a guaranteed promise to pay a death benefit, the other has no guarantees, and may rise or fall, in the case of the current market, most likely fall.

  7. As I understood your question, you need to know the benefits of Life insurance and Mutual funds.

    You cannot compare any savings or investments with Life insurance, because, whatever the amount you save or invest now in any other form of savings, your dependant can get only the amount saved plus interest. But in Life insurace your dependant will get the sum assured in case any thing happens to you at any point of time within the maturity period.

    Hence if you wish to provide for your family, go for life insurance coverage. After sufficient insurance then invest in other avenues.

    good luck
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  8. If you are asking difference between ULIP & Mutual fund for investment purpose, then Mutual fund are better.

    MF are more easy to understand & don’t have high upfront charges. Always go for MF + term insurance

  9. Mutual fund are better.

    If want to go for retirement plan, go for Single premium product with minimum premium & top up it whenever required(read brochure first)

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