Insurance

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Sharwan Baluni (Querist)
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05 March 2012 what is better option 'Term insurance' or 'whole insurance'? Should we see insurance as a investment or a pure term cover?

Dsouza

Dsouza (Expert)
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06 March 2012 Investment cannot be Term insurance', it can only be 'whole insurance' or similar or shorter terms depending on a particular need and for financial planning.

'Term insurance' is used to cover a person who has loans, outstandings and to ensure family does not lose all in case the breadwinner is no more.

Hence insurance can be a investment or a pure term cover depending on a person's situation.
Ideally insurance is investment as it is a vehicle to ensure a person does not get into the debt trap later in life when money is needed, if investment is started in insurance when one starts working.