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What Is The Best Investment, Fixed Deposit Scheme Or Life Insurance Policy?

fixed deposit and life insurance


All we know that money will make money, but the question is how to makes money with a good investment plan? here in this article, I want to share the best investment info about fixed deposits(FD) and life insurance(LI), choose which investment option is the best for you.


There are many investment schemes, plans, are available in the market. but, the fixed deposits(FD) and life insurance(LI) play the king role in the market. fixed deposits and life insurance are most popular in the investment market.

Fixed deposit normally provides banks/investment companies and insurance will provide insurances providers/companies.

fixed deposit

Fixed deposite are most popluar for short-term savings gives high insterst rates when compare to the normal savings account in the bank. Basically, these fixed deposites are proivides to invest for a miniumm 7 days to max 10 years.



The rate of interest on fixed deposits is different from bank to bank and company to company. banks will offer based on time period. if your FD is for 10 years then the rate of interest will slightly more when compare to the short period FD.

The banks will pay's the rate of interest min 7% and Mix 9% per annum. Investment companies pay 7- 11% and more based time period. but, the most of the people prefer the bank fixed deposit only even investment companies offer more interest rate.

The rate of interests on fixed deposit will depend on RESERVE BANK. If the reserve bank will increase the rate of interest on fixed deposits then it applies to the all the fixed deposit holders. as same if it decreases.

The loan on fixed deposit (FD) banks will provide loan on fixed deposit. if you want to withdraw the money on FD without cancelling the fixed deposit (FD). prefer to the loan with the low-interest rate.

Normally, the banks will not allow to withdrawing the money before the maturity period for fixed deposit. If you want to withdraw the money in any emergency time. the prior notification to the bank, then you can withdraw the money by compleating the few bank formalities.

Fixed deposit is the most popular investment to getting good returns. 

insurance

Life Insurance provides insurance companies. insurance are also very famous for investment, Insurance is two types:

  • Whole Life Insurance
  • Term Life Insurance

Basically, life insurances are the long period investment. 




Risk coverage is the main important aspect of life insurance. life insurance aims to protect the financial security of the dependents of the policyholder and also gives the excellent returns on investment after completing the maturity period.

Life Insurance companies offer the different type of schemes. every scheme has different benefits.  

The rate of interest are very high compared to the normal savings and also gives the bonus every year depends on your policy.

Loan are provided by life insurance company on policy.  these loans are eligible after completing the 5 years of policy term. you will get the loan from the policy after 5 years will be 80% of total paid amount. 

Life insurance companies are not allowed to withdraw money before 5 years from starting date.

For example: If you paid 2year of your policy then you stopped it. you will not get a single rupee return. your policy will completely be collapsed. most and should you have to pay the instalments as per commitment was given to insurance company or you have to pay at least 5 years to get your paid amount.

Note: If you withdraw after 5year you will not get any interest or bonus from the life insurance company

Whatever it is life insurance is the best investment idea to get the high-interest rate, bonus per annum, life coverage, maturity returns, and tax benefits.

faq insurance

1.     Which is the best bank for fixed deposit banks or Investment companies?
Ans: The banks are the best and safe for fixed deposit.

2.     Can I Get Risk Benefit For Fixed Deposit?
Ans: No, you will not get risk coverage on fixed deposits.

3.     If I Cancel My Fixed Deposit In Before Maturity Period Can I Get The Interest?
Ans: Yes, you can get interested.

4.    Can I Get Tax Benefit On Life Insurance Policy?
Ans: Yes, you can get income tax benefits.

5.   Can I Get Loan Against Life Insurance Policy?
Ans: Yes, you can get the loan against life insurance after 5 years, you can eligible 80% on total paid amount. 

This article about fixed deposits and life insurance was written by knowledge. I hope this article is useful to you, feel free to give me the suggestions and queries on the comment box. every comment is valuable to me thank you.

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