when investment meets insurance …

One of my regular ways of wasting time on the internet is reading about personal finance. Over the last couple of years, I have been totally convinced about the fallacy in “Jeevan ke saath bhi; jeevan ke baad bhi”. In general, any insurance scheme from any company, that promises you some kind of returns is simply not worth it.

I have managed to force a number of my acquaintances to see the light, or at least agree with me in saying that there’s something amiss about insurance policies the way they are advertised on TV. Here’s a set of articles that gives the broad picture, though:

Return of premium: What’s it worth?
This one is about how “money back” policies (from any company) are not as profitable as they seem.

Investments? Insurance? Or both?
A similar analysis of endowment policies.

Personally, these insurance policies disagree with my fundamental requirement that every rupee I save should continue to work for me, within reasonable parameters of risk v/s return. But on top of that, I suspect that these policies also actually lose money, once you bring inflation into the picture. Unfortunately I have yet to get enough insight to do an actual analysis of the effect of inflation, so it remains only a suspicion right now.

Here’s a bunch of articles on advise about how to approach insurance, whether or not one agrees with the articles quoted above:

4 common life insurance mistakes
Insurance: This time ask the right questions
4 ULIP ‘sales pitches’ to beware of
Mis-selling: ULIPs’ greatest bane
ULIPs? Read the fine print before investing