In India many people have some Myths related to Insurance & Investments, in this post I will show you how these myths have been opened up by financial experts.
The Myth 1: Insurance is a forced form of savings
Many people, believe that insurance is a forced form of savings and this is also pitched by many insurance advisors who push products offering both insurance cover and investment returns.
But is this right?
To take it as a savings tool is a crude form of saying that you cannot save money otherwise. It would do wonders if we explore other much more sophisticated and suitable products for savings like mutual funds to help you save regularly.
Doing insurance primarily for the purpose of saving has huge opportunity costs as we may miss the returns and benefits which other pure investment products offer.