From a public awareness initiative issued by the Insurance Regulatory and Development Authority of India:
Insurance is a responsibility. It ensures security and mitigates risk. It is an assurance to your dependents that you care. Insurance is also an investment tool and provides tax benefits too. Most of all, insurance is peace of mind…
Read the emphasized text slowly. Wow! I couldn’t believe my eyes when I first read that. Insurance as an investment tool? Insurance for tax benefits? And that too from the regulatory body.
Insurance can never be an investment tool — it can, but only if you want to lose your hard-earned money. And don’t buy insurance just because you can avoid paying income tax – I’ve done this before; I learned the hard way.