Category Archives: Business Information

Comparing Insurance and mutual funds. How to choose?

Difference between life insurance and mutual funds

Now a day’s life insurance is also touted as a high-performance and flexible financial investment option by companies that offer unit linked insurance schemes. These schemes are presented as an alternative to mutual funds although life insurance and mutual funds are two very different financial instruments which are designed to serve different purposes. When planning your financial investments and future both of these instruments can be and actually should be part of one’s long-term investment plan. Primarily an insurance policy is designed to pay lump sum amount to the investor on maturity or to the dependents in case of death.

Function of insurance plans and mutual funds

The primary function of a life insurance plan is to secure the financial future of your loved ones thus any return that one will gain through investment options in debt, equity or a combination of both …