Insurance is not an investment
Protection products pay out when something goes wrong. Investment products grow money. Bundling them tends to do both jobs badly. Separating the two — term insurance for cover, funds for growth — usually gets you more cover and better returns for the same outlay.
What it means
Protection products pay out when something goes wrong. Investment products grow money. Bundling them tends to do both jobs badly.
Why it matters to a household
Separating the two — term insurance for cover, funds for growth — usually gets you more cover and better returns for the same outlay.
Where it trips people up
Judging a policy by its maturity value. A policy that returns your premiums has been charging you for the privilege of holding them.
In an Indian household
Endowment and money-back policies remain heavily sold in India, often as tax-saving instruments. Know what you own and what it actually pays.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
Insurance is not an investment
Protection products pay out when something goes wrong. Investment products grow money. Bundling them tends to do both jobs badly.
Why does it matter?
Separating the two — term insurance for cover, funds for growth — usually gets you more cover and better returns for the same outlay.
What do people usually get wrong?
Judging a policy by its maturity value. A policy that returns your premiums has been charging you for the privilege of holding them.
Is there anything India-specific?
Endowment and money-back policies remain heavily sold in India, often as tax-saving instruments. Know what you own and what it actually pays.