Certain insurance policies combine death benefit, with investment opportunities. So apart from a basic sum assured payable as death benefit, the insured person also gets benefits in the form of either a lumpsum payment at the end of the insurance term or at regular intervals.

Insurance companies offer this by earmarking a part of the premium paid, and investing that in market and other investment instruments. The returns from an investment led insurance plan may be fixed or varies. Readers are advised to clearly check with the insurance company before committing a purchase.


  • Investment component takes care of some of the investment requirements of the policyholder
  • Tax benefits under Sec 80 C


  • Death benefit is lower in proportion to premium paid, and may not be adequate for the policyholder and his/her nominee
  • Premium paid is much higher compared to a term insurance due to the investment component included
  • Investment returns may not be lucrative enough for policyholders with alternate investment opportunities and knowledge

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