I bought a few life insurance policies from ICICI Prudential. I am not getting satisfactory returns after investment of 3 to 4 years. Should I still continue with these or not?
-Deepak Kumar Nanda
First and foremost, insurance products should never be bought for investment purpose. It is always better to keep insurance and investments separate. The only purpose of insurance is to let your family be financially secure should something happen to you. Term insurance is the only real deal, where your family gets paid if a claim arises. Insurance products with return benefit, such as ULIPs, money-back, endowment, may sound like a win-win combination of insurance and investment but the fact is they don't provide you enough of either. And on top of that, you end up paying exorbitant premiums.
Therefore, it will be wise to exit such hybrid insurance-cum-investment products. Buy a pure term plan with an adequate insurance cover to take care of your financial dependents and consider products such as mutual funds for your investing needs.
This article was originally published on September 12, 2016.
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