Invest future
premiums in good mutual funds.
Not exact matches
One can qualify for tax exemptions
in many different ways, by showcasing the interest of the money spent on home loans, rent, LIC
premiums, tax - saving or equity
mutual funds which have a tax clause attached to them, then finally there are
best health insurance and medical reimbursements.
The argument goes that a typical investor would do
better to purchase a term life insurance policy and invest the
premium difference
in a low fee index
fund or
mutual fund.
The monthly or quarterly
premium pays for the life insurance as
well as a deposit into the account, which may be invested
in mutual funds or other vehicles.
That won't be as
good as investing $ 1,000
in a
mutual fund for 20 years, but you'll have your
premiums back, plus the benefit of having had term coverage for the whole time.
Instead take a decision on whether or not to pay future
premiums by comparing the benefits you would get by continuing the policy with the benefits of surrendering, purchasing a term policy and investing the remaining amount
in a
good mutual fund or exchange - traded
fund.
You will incur losses but you will
better off taking a
good term plan and investing the differential
premium amount
in good mutual funds for long term.