LIC policy
Endowment life insurance provides insurance coverage and also includes an investment component.
The purpose of a LIC policy is to accumulate funds in case of unforeseen circumstances, prepare for retirement, or ensure the financial future of the family.
In case of the insured’s death, the LIC pays the insurance benefit to the beneficiary and may also provide investment return or savings depending on the terms of the policy.
LIC can offer various investment management options, including stock investments, bonds, deposits and other instruments.
LIC savings policies guarantee a certain return.
Share in mutual funds
Share in mutual funds is a collective investment institution.
The purpose of investing in mutual fund may be growth and capital increase.
The funds collected from investors are managed by professional managers to be invested in various financial instruments such as shares, bonds, deposits, etc.
The profitability of investors in a mutual fund depends on the success of the manager’s investment operations.
Mutual funds do not guarantee return and profit.
The choice between an LIC policy and investing in a mutual fund depends on your financial goals, risk appetite and other factors. Before making decision, it is important to carefully evaluate your needs and review the terms and conditions offered by each option.
Source: https://ifamagazine.com/using-life-insurance-as-an-alternative-to-holding-assets-in-trust/
Photos are from open sources.
