INSURANCE IS NOT A PROFIT GENERATOR IF CONSIDERED FOR A SHORTER PERIOD
Insurance planning is about coverage for eventualities, not profit. March is approaching and many of you have got busy with tax planning. In the process, you are looking at various financial instruments and insurance is surely on your agenda. If so, it is important that you consider some aspects. Insurance, besides protection, is considered an investment and tax benefit tool, too. Is it right to use insurance as a money-making vehicle? Not really! If insurance is taken with an intention of generating profits, then it's a wrong notion. Insurance is a promise of reimbursement in the case of loss, paid to the families of people in case of any untoward incident, after prepayments to an insurance company. There is no mention of profit here, only about indemnifying loss out of earlier precautionary payment towards an unforeseen eventuality. There are 'n' number of charges which are to be paid by the policyholder in the initial years. And every policyholder does not know about thi