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Term Insurance as an Investment: How to Grow Your Money Safely

Starting your investment journey is akin to planting a seed. Over time, this seed grows, and you reap the benefits. These returns not only contribute to a more comfortable retirement but also secure your family’s future.

Ensuring the financial safety of your family is imperative. And it becomes more important when you’re the sole breadwinner for your family. There are several investment options available in the market. However, just like a balanced meal, your portfolio must be such. 

The various investment options are: 

  • Term Insurance 
  • Mutual Funds (debt and equity) 
  • Equities and Preference Shares
  • Gold 
  • Debentures 
  • Bonds, REITs
  • National Pension Scheme, FDs, RDs, PPF and much more! 

All of the above come with a set of pros and cons—the risk level changes with your level of investment. Whatever your portfolio, you can have term insurance, creating stability amidst all risks. 

Let us now understand why term insurance matters for the growth of your money. 

Term insurance is an insurance policy offering long-term coverage in exchange for premiums. The premiums are affordable under this policy. The tenure offered is up to 40 years. The coverage amount can be as high as INR 1 crore, with the premium under INR 15,000 annually.

Why do you need term insurance? 

  • Protect the financial interests of your family in your absence 
  • Life coverage for a substantial amount 
  • Acts as a hedge against risk 
  • Tax benefits under the Income Tax Act, 1961 

Your term insurance can be applied and availed at a very early age. Almost as early as once you turn 18 years of age. Since it is available this early, the premiums are affordable. This coverage is especially beneficial for your family, providing them with financial security in case of an unfortunate event.

Growing your money depends on getting high returns and keeping things stable. It might seem odd at first, but you need both returns and stability. Aiming for high returns increases your risk. But by including stable investments like term insurance, you balance your portfolio. That’s why having term insurance is key.

How does your money grow? 

Money growth is like a zero-to-one journey. It does not happen overnight. It is a culmination of conscious efforts from your end that help you achieve and accumulate wealth. Wealth in itself does not mean having a higher net worth or a bigger bank balance. It is a mix of both.

It would help if you had an excellent net worth that protects all your assets, but some also need to be liquid in emergencies. Term insurance can help you create liquidity by making loans available readily if needed. In such a way, it assists you during a time of crisis and during the sum assured your family claims after your demise. For various reasons, term insurance is a wise investment in your portfolio. 

Therefore, adding term insurance to your investment mix is a smart move for both protecting your family financially and rounding out your portfolio for steady growth. Think of term insurance as the support that keeps your financial plans healthy, helping ensure a solid future for your family and a comfortable retirement for you.

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